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Communications

China Mobile Ltd.

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. It provides telecommunications and other related services in Mainland China. The firm offers communications services in all 31 provinces, autonomous regions and directly-administered municipalities throughout Mainland China and in Hong Kong Special Administrative Region. Its 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 2019 HKDUSD
Revenue845,807.57M107,949.73M
Gross Profit216,769.67M27,666.13M
Operating income131,602.34M16,796.30M
Income before tax146,833.11M18,740.19M
Net income120,921.98M15,433.17M
EBITDA338,902.68M43,253.87M
Diluted EPS5.870.74
Dividends Per Share3.250.41
Total Assets1,822.46B233,894.65M
Total liabilities583,851.98M74,931.59M
Total equity1,234.67B158,458.30M
Operating cash flow296,239.08M37,808.75M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 824,378.30M 827,732.21M 853,876.98M 872,728.12M 845,807.57M
Gross Profit 400,623.41M 399,780.23M 418,501.35M 419,691.09M 216,769.67M
Operating income 136,339.08M 146,197.19M 153,045.76M 145,267.34M 131,602.34M
Income before tax 177,293.11M 168,792.07M 170,814.83M 182,281.53M 146,833.11M
Net income 133,880.75M 127,054.99M 131,773.61M 139,506.16M 120,921.98M
EBITDA 305,456.68M 308,127.15M 326,348.95M 327,855.65M 338,902.68M
Diluted EPS 6.53 6.20 6.43 6.81 5.87
Dividends Per Share 2.72 2.73 3.20 3.21 3.25
Total Assets 1,704.20B 1,696.88B 1,827.21B 1,751.48B 1,822.46B
Total liabilities 605,736.47M 601,170.06M 640,115.86M 547,486.60M 583,851.98M
Total equity 1,094.84B 1,092.23B 1,183.20B 1,200.11B 1,234.67B
Operating cash flow 312,261.79M 314,625.89M 301,322.36M 258,815.01M 296,239.08M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 106,336.08M 106,632.75M 109,572.31M 111,352.22M 107,949.73M
Gross Profit 51,676.18M 51,501.76M 53,703.47M 53,548.79M 27,666.13M
Operating income 17,586.30M 18,833.88M 19,639.33M 18,534.80M 16,796.30M
Income before tax 22,868.93M 21,744.67M 21,919.52M 23,257.47M 18,740.19M
Net income 17,269.20M 16,367.88M 16,909.62M 17,799.72M 15,433.17M
EBITDA 39,400.68M 39,694.53M 41,878.17M 41,831.42M 43,253.87M
Diluted EPS 0.84 0.79 0.82 0.86 0.74
Dividends Per Share 0.35 0.35 0.41 0.41 0.41
Total Assets 219,892.64M 218,863.79M 233,739.70M 223,707.71M 233,894.65M
Total liabilities 78,158.02M 77,538.81M 81,884.51M 69,927.46M 74,931.59M
Total equity 141,267.69M 140,876.46M 151,356.87M 153,284.44M 158,458.30M
Operating cash flow 40,278.47M 40,531.74M 38,666.68M 33,022.45M 37,808.75M

Valuation Measures

Dec 2019
PER11.09
ROA6.76%
ROE9.93%
Operating margin15.55%
Profit margin14.29%

Key executives

  • Chief Financial Officer, Executive Director & VP: Xin Dong
  • Vice President: Tong Qing Gao
  • Vice President: Qin Jian
  • Vice President: Dachun Zhao
  • Head-Investor Relations: Calvin Lam

Shareholders

  • China State-Owned Assets Supervision & Admn Commission (72.7%)
  • The Vanguard Group, Inc. (0.9%)
  • BlackRock Fund Advisors (0.6%)
  • The Caisse de depot et placement du Quebec (0.3%)
  • Norges Bank Investment Management (0.3%)
  • Dimensional Fund Advisors LP (0.3%)
  • Thornburg Investment Management, Inc. (0.3%)
  • State Street Global Advisors Asia Ltd. (0.3%)
  • Hang Seng Investment Management Ltd. (0.3%)
  • FIL Investment Management (Hong Kong) Ltd. (0.2%)

Contact Details

Related Companies

  • China Mobile Communications Group Gansu Co., Ltd.
  • 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.

Competitors

  • China Telecom Corp. Ltd. Class H
  • GDS Holdings Ltd. Sponsored ADR Class A
  • Shanghai AtHub Co., Ltd. Class A
  • Skyworth Digital Co., Ltd. Class A
  • VEON Ltd.
Last Updated on 6 Jul, 2020

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