941

China MobileSEHK:941 Stock Report

Market Cap

HK$978.7b

7D

-2.0%

1Y

-8.9%

Updated

18 Sep, 2021

Data

Company Financials +
941 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance2/6
Financial Health6/6
Dividends5/6

941 Overview

China Mobile Limited provides telecommunications services in Mainland China and Hong Kong.

China Mobile Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China Mobile
Historical stock prices
Current Share PriceHK$47.80
52 Week HighHK$39.00
52 Week LowHK$59.20
Beta0.47
1 Month Change-7.09%
3 Month Change0.95%
1 Year Change-8.87%
3 Year Change-37.31%
5 Year Change-50.39%
Change since IPO353.08%

Recent News & Updates

Jun 28
China Mobile (HKG:941) Is Reinvesting At Lower Rates Of Return

China Mobile (HKG:941) Is Reinvesting At Lower Rates Of Return

There are a few key trends to look for if we want to identify the next multi-bagger. Ideally, a business will show two...

Apr 02
Does It Make Sense To Buy China Mobile Limited (HKG:941) For Its Yield?

Does It Make Sense To Buy China Mobile Limited (HKG:941) For Its Yield?

Could China Mobile Limited ( HKG:941 ) be an attractive dividend share to own for the long haul? Investors are often...

Shareholder Returns

941HK Wireless TelecomHK Market
7D-2.0%-0.8%-4.6%
1Y-8.9%10.5%5.2%

Return vs Industry: 941 underperformed the Hong Kong Wireless Telecom industry which returned 10.5% over the past year.

Return vs Market: 941 underperformed the Hong Kong Market which returned 5.2% over the past year.

Price Volatility

Is 941's price volatile compared to industry and market?
941 volatility
941 Beta0.47
Industry Beta0.63
Market Beta1

Stable Share Price: 941 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 941's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1997446,898Xin Donghttps://www.chinamobileltd.com

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 communications services. As of December 31, 2020, the company served a total of 942 million mobile customers and 210 million wireline broadband customers.

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$47.8) is trading below our estimate of fair value (HK$152.54)

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 (7.3x) compared to the Asian Wireless Telecom industry average (20.7x).

PE vs Market: 941 is good value based on its PE Ratio (7.3x) compared to the Hong Kong market (10x).


Price to Earnings Growth Ratio

PEG Ratio: 941 is poor value based on its PEG Ratio (1.1x)


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 (2.1x).


Future Growth

How is China Mobile forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 941's forecast earnings growth (6.7% per year) is above the savings rate (1.5%).

Earnings vs Market: 941's earnings (6.7% 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 (4.9% per year) is forecast to grow slower than the Hong Kong market (12.3% per year).

High Growth Revenue: 941's revenue (4.9% 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 (10.1%).


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 (13.5%) are lower than last year (14.2%).


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 (4.6%) exceeds its 5-year average (-0.9% per year).

Earnings vs Industry: 941 earnings growth over the past year (4.6%) underperformed the Wireless Telecom industry 5.5%.


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¥635.0B) exceed its short term liabilities (CN¥565.5B).

Long Term Liabilities: 941's short term assets (CN¥635.0B) exceed its long term liabilities (CN¥53.1B).


Debt to Equity History and Analysis

Debt Level: 941 is debt free.

Reducing Debt: 941 currently has no debt however we can't compare to 5 years ago as we have no data for that period.

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?

7.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 941's dividend (7.05%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 941's dividend (7.05%) is in the top 25% of dividend payers in the Hong Kong market (6.76%)


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 (52.2%), 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 (57.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Xin Dong (54 yo)

1.08yrs

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 ($USD151.10K) is below average for companies of similar size in the Hong Kong market ($USD1.04M).

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 ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: 941's board of directors are considered experienced (3.9 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 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$978.728b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 10:01
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.