China Mobile (0941)

This company had phenomenal performance for the past few years. Growing at about 30% per year, before stagnating recently as the mobile market becomes more saturated. Trading now at 10x PE with 4% dividend.

Recently, China mobile acquired a bank, claiming that it will compliment its mobile payment business.

Anyone has knowledge on this company? I'm interested to know if they can expand like Vodafone to other countries. As China become stronger in terms of economy and global presence, would this company also benefit from China's influence?

Hope to hear your views!


China Mobile Limited provides a range of mobile telecommunications services in 31 provinces, autonomous regions and directly-administered municipalities in the People’s Republic of China, as well as in the Hong Kong Special Administrative Region of the People’s Republic of China. As of March 31, 2011, its total number of customers was approximately 600.8 million. As of March 31, 2011, China Mobile Communications Corporation (CMCC) owned 74.2% equity interest in the Company. It offers mobile telecommunications services using the Global System for Mobile Communications (GSM). Its businesses consist of voice business and value-added business. In March 2011, the Company, through its wholly owned subsidiary, China Mobile Communication Co., Ltd. (CMC), acquired from CMCC, ZTE, Eastern Communications Co., Ltd., Beijing Digital China Limited, Ningbo Bird Co., Ltd. and Shenzhen Huawei Investment & Holding Co., Ltd.

check out what i wrote some time ago >> http://www.investmentmoats.com/money-man...t-chl-vod/

which bank did it purchase?

Pudong Development Bank, if I am not wrong.

600000.sh

but I believe what's behind the investment in the bank is more about capital injection and cross-control of banks by Chinese government.

(27-06-2011, 07:28 AM)freedom Wrote: Pudong Development Bank, if I am not wrong.

600000.sh

but I believe what's behind the investment in the bank is more about capital injection and cross-control of banks by Chinese government.

That's one of the reasons why I was hesitant to buy China mobile. If the gov were to use this company's cash, as a tool to cross control other companies, that might not serve the minority shareholder's interest well.

In my opinion, I think that China mobile should focus more energy to acquire Telecom companies overseas. If Singtel can do it, I believe China mobile can do much better.

Since June 2011, the share price has risen from the HK$70 level to HK$84.65 present level .

China Mobile Q2 net profit edges up 2%

HONG KONG - China Mobile Ltd, the world’s largest mobile carrier by subscribers, posted a 2 per cent rise in second-quarter net profit, buoyed by an increase in 3G subscribers.

China Mobile’s net profit for the April-June quarter came in at 35.2 billion yuan (S$7.3 billion), up from 34.4 billion yuan a year earlier, according to Reuters calculations based on the company’s data.

China Mobile, the only Chinese carrier that does not have a contract with Apple to sell iPhones, made a first-half net profit of 63.1 billion yuan, up 1.5 per cent from a year earlier, it said in a statement on the Hong Kong stock exchange.

http://www.todayonline.com/business/chin...it-edges-2

• Oct 9 2015 at 8:50 AM 
   
  
  
•  Updated Oct 9 2015 at 4:41 PM 
  

What you need to know about China Mobile

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[img=620x0]http://www.afr.com/content/dam/images/g/j/6/i/d/l/image.related.afrArticleLead.620x350.gk30sx.png/1444369299386.jpg[/img]China Mobile – listed in Hong Kong and with American depositary receipts on the New York Stock Exchange – has strung together three consecutive months of 19 million-plus new 4G subscribers. iStockphoto.com
by Greg Smith
The world's largest wireless carrier by number of subscribers, China Mobile, continues to add 4G customers at pace. A record 20.5 million were gained in August, taking the total 4G user base to more than 229 million and exceeding 3G subscriber numbers for the first time.
China Mobile – listed in Hong Kong and with American depositary receipts (ADRs) on the New York Stock Exchange  – has now strung together three consecutive months of 19 million-plus new 4G subscribers. The telco's overall customer base has climbed to  820 million. China Mobile dominates the wireless market in China, with a market share of about 63 per cent, and should continue to build on its first-mover advantage in the 4G market.
Now two-thirds of the way through the year, it looks as though China Mobile will easily smash its stated goal of 250 million 4G customers by year end. These are sought after as the data traffic per month per user is about 2.5 times the blended average of the entire user base.
Data traffic growth is very much becoming the revenue and earnings driver for the company. As the high-speed mix (3G and 4G combined) increases, we expect to see a resumption of growth in the average revenue per user (ARPU) metric, which has been under pressure as legacy revenues such as voice and SMS wind down and due to the popularity of "over-the-top" messaging applications.

About 139 million 4G customers have been added in the year to date and, despite some of these seemingly migrating from 3G, the high-speed mix now sits at about 53 per cent. This represents a major shift from 25 per cent at the end of 2013.
The rapid uptake of 4G, along with discounted data rates, has led to an explosion of data traffic (up more than 150 per cent in the first half) across the company's networks. This is a phenomenon we expect to continue as video and other media is increasingly consumed on mobile devices.
The launch of Apple's latest iPhone models should further boost 4G subscriber uptake. While all three carriers in China will have the smartphones available, we expect China Mobile to sell more thanks to better promotions and its superior 4G network.
Positively, the bulk of capital expenditure related to the extensive 4G rollout is also in the rear-view mirror. Free cash flow in the first half accordingly surged almost 58 per cent to RMB57.3 billion ($12.4 billion). 


China-related equities have been hit hard in recent months and China Mobile shares have not been immune to the rout. However, the business is relatively defensive in nature and the company's market position is very strong.
We view China Mobile's valuation as undemanding on about 14 times FY15 earnings estimates, and 13 times the following year. On an enterprise value to EBITDA basis, the shares look more attractive thanks to the company's massive net cash position. The ratio comes in at just 4.3 times and 4.1 times respectively over the same time frames.
Thus the value in China Mobile is clear. However, any investment should be taken with a medium-term view and with appreciation for the considerable volatility in Chinese equities.
Greg Smith is the head of research at investment research and funds management house Fat Prophets. 

Disclosure: Interests associated with Fat Prophets declare a holding in China Mobile.

Hi experts,

I am a typical singapore employee.

In terms of tax considerations whether capital gains or dividend payout, should i buy China mobile through the HKSE, the NYSE (in the form of ADRs) or the SGX (also in the form of ADRs)?

thanks in advance

(29-11-2015, 08:22 PM)money Wrote: Hi experts,

I am a typical singapore employee.

In terms of tax considerations whether capital gains or dividend payout, should i buy China mobile through the HKSE, the NYSE (in the form of ADRs) or the SGX (also in the form of ADRs)?

thanks in advance

Short answer: buy via HKSE. No taxes on dividends or capital gains, and the shares are highly liquid.

Long answer: With the NYSE ADR you run the risk of dividends being subject to a 30% withholding tax as there is no Singapore-US tax treaty. For HKSE shares there is no tax on dividends. For capital gains, NYSE ADRs will not be taxed provided you submit a W8-BEN form to your broker to declare that you are not a US person. HKSE shares do not attract capital gains tax for Singapore tax residents, no need to submit any forms. I do not know anything about the ADRs traded on SGX but liquidity will probably be much lower than on HKSE.