China Mobile Ltd.

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Company Background

China Mobile is China's largest telecommunications company. It commands slightly more than 60% of the domestic mobile phone market, where some 1.3 billion people use handsets.

The company also boasts the largest number of subscribers in the world. Backed by its strong brand power and excellent name recognition, China Mobile far eclipses such rivals as China Telecom and China Unicom in scale.

Its parent company is state-owned behemoth China Mobile Communications Corp., which was created in 2000 by spinning off the mobile telecommunications division of the former posts and telecommunications ministry. China Mobile, a core unit of CMCC, is listed on the domestic stock market. Slightly more than 70% of its outstanding shares are owned by the asset-management arm of CMCC.

Because it is a large state-owned company, China Mobile acts in step with government policy. In late 2013, it was the first company in China to introduce the TD-LTE fourth-generation mobile communications format, developed mainly by local companies. China Mobile is leading the efforts to promote the standard at home, spending huge sums to set up new base stations and introduce handsets compatible with the 4G service.

An important issue facing China Mobile is how to deal with the expected slowdown in the home market, which is thought to be near saturation. The company is therefore targeting overseas markets, and has invested in a major telecommunications unit of Thai conglomerate Charoen Pokphand Group. China Mobile is trying to promote the TD-LTE format abroad by allying with local telecommunications equipment makers.

Business Summary

China Mobile Ltd. operates as an investment holding company, which provides telecommunications and other related services in Mainland China. It offers communications services in all 31 provinces, autonomous regions and directly-administered municipalities throughout Mainland China and in Hong Kong Special Administrative Region. The firm's Internet Protocol based core network is capable of supporting the GSM, TD-SCDMA, TD-LTE and LTE FDD networks. The company was founded on September 3, 1997 and is headquartered in Hong Kong.

Financial Highlights

Dec 2018	HKD	USD
Revenue	872,728.12M	111,352.22M
Gross Profit	419,691.09M	53,548.79M
Operating income	145,267.34M	18,534.80M
Income before tax	182,281.53M	23,257.47M
Net income	139,506.16M	17,799.72M
EBITDA	327,855.65M	41,831.42M
Diluted EPS	6.81	0.86
Dividends Per Share	3.21	0.41
Total Assets	1,751.48B	223,707.71M
Total liabilities	547,486.60M	69,927.46M
Total equity	1,200.11B	153,284.44M
Operating cash flow	258,815.01M	33,022.45M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	819,943.29M	824,378.30M	827,732.21M	853,876.98M	872,728.12M
Gross Profit	433,396.02M	400,623.41M	399,780.23M	418,501.35M	419,691.09M
Operating income	152,654.59M	136,339.08M	146,197.19M	153,045.76M	145,267.34M
Income before tax	179,368.14M	177,293.11M	168,792.07M	170,814.83M	182,281.53M
Net income	137,454.07M	133,880.75M	127,054.99M	131,773.61M	139,506.16M
EBITDA	307,349.26M	305,456.68M	308,127.15M	326,348.95M	327,855.65M
Diluted EPS	6.73	6.53	6.20	6.43	6.81
Dividends Per Share	2.92	2.72	2.73	3.20	3.21
Total Assets	1,685.01B	1,704.20B	1,696.88B	1,827.21B	1,751.48B
Total liabilities	573,803.90M	605,736.47M	601,170.06M	640,115.86M	547,486.60M
Total equity	1,108.62B	1,094.84B	1,092.23B	1,183.20B	1,200.11B
Operating cash flow	293,170.67M	312,261.79M	314,625.89M	301,322.36M	258,815.01M

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	105,735.25M	106,336.08M	106,632.75M	109,572.31M	111,352.22M
Gross Profit	55,888.30M	51,676.18M	51,501.76M	53,703.47M	53,548.79M
Operating income	19,685.47M	17,586.30M	18,833.88M	19,639.33M	18,534.80M
Income before tax	23,130.30M	22,868.93M	21,744.67M	21,919.52M	23,257.47M
Net income	17,725.30M	17,269.20M	16,367.88M	16,909.62M	17,799.72M
EBITDA	39,634.02M	39,400.68M	39,694.53M	41,878.17M	41,831.42M
Diluted EPS	0.86	0.84	0.79	0.82	0.86
Dividends Per Share	0.37	0.35	0.35	0.41	0.41
Total Assets	217,284.82M	219,892.64M	218,863.79M	233,739.70M	223,707.71M
Total liabilities	73,992.91M	78,158.02M	77,538.81M	81,884.51M	69,927.46M
Total equity	142,958.74M	141,267.69M	140,876.46M	151,356.87M	153,284.44M
Operating cash flow	37,805.63M	40,278.47M	40,531.74M	38,666.68M	33,022.45M

Valuation Measures

Dec 2018
PER	11.05
ROA	7.79%
ROE	11.70%
Operating margin	16.64%
Profit margin	15.98%

Key executives

Chief Financial Officer, Executive Director & VP: Xin Dong
Vice President: Qin Jian
Secretary: Wai Lan Wong

Shareholders

China State-Owned Assets Supervision & Admn Commission (72.7%)
The Vanguard Group, Inc. (0.9%)
BlackRock Fund Advisors (0.7%)
The Caisse de depot et placement du Quebec (0.3%)
Norges Bank Investment Management (0.3%)
Hang Seng Investment Management Ltd. (0.3%)
Thornburg Investment Management, Inc. (0.3%)
State Street Global Advisors Asia Ltd. (0.2%)
FIL Investment Management (Hong Kong) Ltd. (0.2%)
Dimensional Fund Advisors LP (0.2%)

Contact Details

Website:http://www.chinamobileltd.com
Address: 60th Floor, The Center, 99 Queen's Road Central, Hong Kong, Hong Kong
Phone: +852.3121.8888

Related Companies

China Mobile Group Guangzhou Co., Ltd.
China Mobile International (UK) Ltd.
China Mobile Communications Group Fujian Co., Ltd.
China Mobile International (USA), Inc.
China Mobile Investment Holdings Co., Ltd.
China Mobile International Ltd. (Hong Kong)
China Mobile International Holdings Ltd.
Jiangxi Mobile Communications Co., Ltd.
Guizhou Mobile Communication Co., Ltd.
China Mobile Communications Group Hebei Co. (Xingtai Branch)
China Mobile Communications Group Hebei Co., (Chengde Branch)
China Mobile Communications Group Jiangxi (Ganzhou Branch)
China Mobile Group Terminal Co., Ltd.
China Mobile Communications Group Jiangxi (Jiujiang Branch)
China Mobile Communications Group Jiangxi /Nanchang Branch/
China Mobile Group Fujian Co., Ltd. (Xiamen Branch)
China Mobile Group Fujian Co., Ltd. (Quanzhou Branch)
China Mobile Internet Co. Ltd.
CM TieTong
MIGU Co. Ltd.
China Mobile Online Service Co. Ltd.
China Mobile (Hangzhou) Information Technology Co. Ltd.
China Mobile (Suzhou) Software Technology Co. Ltd.
China Mobile M2m Co. Ltd.
China Mobile Group Device Co., Ltd.
Aspire Technologies (Shenzhen) Ltd.
Aspire (BVI) Ltd.
China Mobile Holding Co. Ltd.
China Mobile Group Ningxia Co. Ltd.
China Mobile Group Xizang Co. Ltd.

Competitors

China Unicom (Hong Kong) Limited
China Telecom Corp. Ltd. Class H
GDS Holdings Ltd. Sponsored ADR Class A
Skyworth Digital Co., Ltd. Class A
VEON Ltd. Sponsored ADR
Shanghai AtHub Co., Ltd. Class A

Last Updated on 23 Jan, 2020