SEHK:941

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet, good value 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


Market Performance


7 Day Return

2.2%

941

2.5%

HK Wireless Telecom

2.9%

HK Market


1 Year Return

-13.3%

941

-4.9%

HK Wireless Telecom

0.7%

HK Market

Return vs Industry: 941 underperformed the Hong Kong Wireless Telecom industry which returned -4.9% over the past year.

Return vs Market: 941 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

941IndustryMarket
7 Day2.2%2.5%2.9%
30 Day-1.6%-0.2%-2.5%
90 Day-6.3%-4.3%-5.4%
1 Year-9.5%-13.3%0.7%-4.9%4.4%0.7%
3 Year-15.5%-27.9%-2.8%-16.7%17.0%5.2%
5 Year-11.0%-28.5%-13.1%-30.6%20.2%0.2%

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

Valuation

Is China Mobile undervalued compared to its fair value and its price relative to the market?

48.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 941 (HK$66.4) is trading below our estimate of fair value (HK$127.78)

Significantly Undervalued: 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 (11.4x) compared to the Wireless Telecom industry average (13.8x).

PE vs Market: 941 is poor value based on its PE Ratio (11.4x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 941 is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: 941 is good value based on its PB Ratio (1.1x) compared to the XA Wireless Telecom industry average (1.7x).


Next Steps

Future Growth

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

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 941's forecast earnings growth (2.5% per year) is above the savings rate (2%).

Earnings vs Market: 941's earnings (2.5% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 941's earnings are forecast to grow, but not significantly.

Revenue vs Market: 941's revenue (3.3% per year) is forecast to grow slower than the Hong Kong market (10.1% per year).

High Growth Revenue: 941's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 941's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has China Mobile performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 941's earnings have grown by 1% per year over the past 5 years.

Accelerating Growth: 941's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 941 had negative earnings growth (-7.7%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-3%).


Return on Equity

High ROE: 941's Return on Equity (10%) is considered low.


Return on Assets

ROA vs Industry: 941's Return on Assets is below or equal to the Wireless Telecom industry average last year.


Return on Capital Employed

ROCE Improving: 941's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is China Mobile's financial position?


Financial Position Analysis

Short Term Liabilities: 941's short term assets (CN¥558.6B) exceeds its short term liabilities (CN¥501.8B)

Long Term Liabilities: 941's short term assets (558.6B) exceeds its long term liabilities (62.8B)


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 0.6%.

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

Inventory Level: 941 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 941's debt is covered by short term assets.


Next Steps

Dividend

What is China Mobile's current dividend yield, its reliability and sustainability?

4.35%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%2.2%markettop25%6.3%industryaverage4.1%forecastin3Years4.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 941's dividend (4.35%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 941's dividend (4.35%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.29%).

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 reasonably low payout ratio (48.5%), 941's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 941's dividends in 3 years are forecast to be covered by earnings (52.7% payout ratio).


Next Steps

Management

What is the CEO of China Mobile's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average board tenure


CEO

China Mobile has no CEO, or we have no data on them.


Board Age and Tenure

2.6yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 941's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jie Yang (56yo)

    Executive Chairman

    • Tenure: 0.6yrs
  • Grace Wong

    Company Secretary

    • Tenure: 14.4yrs
  • Tiger Lin

    Chairman of China Mobile International Ltd and CEO of China Mobile International Ltd

    • Tenure: 0yrs
  • Xin Dong (52yo)

    VP, CFO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥1.05m

Board Members

  • Moses Cheng (69yo)

    Independent Non-Executive Director

    • Tenure: 16.6yrs
    • Compensation: CN¥460.00k
  • Paul Chow (73yo)

    Independent Non Executive Director

    • Tenure: 6.4yrs
    • Compensation: CN¥455.00k
  • Jie Yang (56yo)

    Executive Chairman

    • Tenure: 0.6yrs
  • Tiger Lin

    Chairman of China Mobile International Ltd and CEO of China Mobile International Ltd

    • Tenure: 0yrs
  • Xin Dong (52yo)

    VP, CFO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥1.05m
  • Stephen Yiu (58yo)

    Independent Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥417.00k
  • Qiang Yang (57yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs

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$1.364t
  • Shares outstanding: 20.48b
  • Website: https://www.chinamobileltd.com

Number of Employees


Location

  • China Mobile Limited
  • The Center
  • 60th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHLNYSE (New York Stock Exchange)SPON ADR REP 5 ORD HKD0.10USUSDOct 1997
CHL NBMV (Bolsa Mexicana de Valores)SPON ADR REP 5 ORD HKD0.10MXMXNOct 1997
CTMADB (Deutsche Boerse AG)SPON ADR REP 5 ORD HKD0.10DEEUROct 1997
0HX8LSE (London Stock Exchange)SPON ADR REP 5 ORD HKD0.10GBUSDOct 1997
CHLK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1997
941SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 1997
CTMDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1997
941SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 1997
CHTSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFOct 1997
941SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 1997

Biography

China Mobile Limited provides mobile telecommunications and related services in Mainland China and Hong Kong. The company offers local calls; domestic and international long distance calls and roaming serv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:37
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.