Executive Summary
China Mobile Limited provides telecommunications services in Mainland China and Hong Kong. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet, undervalued and pays a dividend.
Similar Companies
Share Price & News
How has China Mobile's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 941 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 941's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-3.8%
941
-0.5%
HK Wireless Telecom
-1.8%
HK Market
1 Year Return
-15.4%
941
13.0%
HK Wireless Telecom
27.5%
HK Market
Return vs Industry: 941 underperformed the Hong Kong Wireless Telecom industry which returned 13% over the past year.
Return vs Market: 941 underperformed the Hong Kong Market which returned 27.5% over the past year.
Shareholder returns
| 941 | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.8% | -0.5% | -1.8% |
| 30 Day | -1.4% | 0.4% | -1.6% |
| 90 Day | 6.6% | 4.9% | -2.5% |
| 1 Year | -7.3%-15.4% | 18.7%13.0% | 32.5%27.5% |
| 3 Year | -18.9%-32.3% | 22.2%7.9% | 4.0%-7.0% |
| 5 Year | -21.2%-40.4% | 28.7%5.1% | 60.1%32.9% |
Long-Term Price Volatility Vs. Market
How volatile is China Mobile's share price compared to the market and industry in the last 5 years?
Simply Wall St News
10 hours ago | Simply Wall St
China Mobile's(HKG:941) Share Price Is Down 42% Over The Past Five Years.1 month ago | Simply Wall St
Does It Make Sense To Buy China Mobile Limited (HKG:941) For Its Yield?2 months ago | Simply Wall St
Our Take On The Returns On Capital At China Mobile (HKG:941)Valuation
Is China Mobile undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 941 (HK$50) is trading below our estimate of fair value (HK$133.25)
Significantly Below Fair Value: 941 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 941 is good value based on its PE Ratio (7.9x) compared to the XA Wireless Telecom industry average (19.5x).
PE vs Market: 941 is good value based on its PE Ratio (7.9x) compared to the Hong Kong market (11.7x).
Price to Earnings Growth Ratio
PEG Ratio: 941 is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: 941 is good value based on its PB Ratio (0.7x) compared to the XA Wireless Telecom industry average (2x).
Future Growth
How is China Mobile forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
3.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 941's forecast earnings growth (3.2% per year) is above the savings rate (1.5%).
Earnings vs Market: 941's earnings (3.2% per year) are forecast to grow slower than the Hong Kong market (17.2% per year).
High Growth Earnings: 941's earnings are forecast to grow, but not significantly.
Revenue vs Market: 941's revenue (2.6% per year) is forecast to grow slower than the Hong Kong market (12.6% per year).
High Growth Revenue: 941's revenue (2.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 941's Return on Equity is forecast to be low in 3 years time (9.2%).
Past Performance
How has China Mobile performed over the past 5 years?
-0.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 941 has high quality earnings.
Growing Profit Margin: 941's current net profit margins (13.8%) are lower than last year (14.3%).
Past Earnings Growth Analysis
Earnings Trend: 941's earnings have declined by 0.9% per year over the past 5 years.
Accelerating Growth: 941's earnings growth over the past year (1.9%) exceeds its 5-year average (-0.9% per year).
Earnings vs Industry: 941 earnings growth over the past year (1.9%) exceeded the Wireless Telecom industry -0.3%.
Return on Equity
High ROE: 941's Return on Equity (9.4%) is considered low.
Financial Health
How is China Mobile's financial position?
Financial Position Analysis
Short Term Liabilities: 941's short term assets (CN¥579.7B) exceed its short term liabilities (CN¥517.3B).
Long Term Liabilities: 941's short term assets (CN¥579.7B) exceed its long term liabilities (CN¥57.8B).
Debt to Equity History and Analysis
Debt Level: 941 is debt free.
Reducing Debt: 941 has no debt compared to 5 years ago when its debt to equity ratio was 0.2%.
Debt Coverage: 941 has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: 941 has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is China Mobile current dividend yield, its reliability and sustainability?
6.58%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 941's dividend (6.58%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.94%).
High Dividend: 941's dividend (6.58%) is in the top 25% of dividend payers in the Hong Kong market (6.01%)
Stability and Growth of Payments
Stable Dividend: 941's dividend payments have been volatile in the past 10 years.
Growing Dividend: 941's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (54.4%), 941's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 941's dividends in 3 years are forecast to be covered by earnings (54.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.5yrs
Average management tenure
CEO
Xin Dong (53 yo)
0.75
Tenure
CN¥977,000
Compensation
Mr. Xin Dong serves as President and Director at China Mobile Communications Group Co., Ltd. since May 11, 2020 and served as its Chief Accountant. He has been the Executive Director of China Mobile Limite...
CEO Compensation Analysis
Compensation vs Market: Xin's total compensation ($USD151.17K) is below average for companies of similar size in the Hong Kong market ($USD847.07K).
Compensation vs Earnings: Xin's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: 941's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Members
Experienced Board: 941's board of directors are considered experienced (3.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
China Mobile Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: China Mobile Limited
- Ticker: 941
- Exchange: SEHK
- Founded: 1997
- Industry: Wireless Telecommunication Services
- Sector: Telecom
- Market Cap: HK$1.025t
- Shares outstanding: 20.48b
- Website: https://www.chinamobileltd.com
Number of Employees
Location
- China Mobile Limited
- The Center
- 60th Floor
- Hong Kong
- Hong Kong
Listings
Biography
China Mobile Limited provides telecommunications services in Mainland China and Hong Kong. Its businesses primarily consist of mobile voice and data business, wireline broadband, and other information and ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/07 10:10 |
| End of Day Share Price | 2021/05/07 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.