Stock on Focus: China Mobile Limited (CHL)

Company Profile:

China Mobile Limited, an investment holding company, provides mobile telecommunications and related services in Mainland China and Hong Kong. It offers voice services, including local calls; domestic and international long distance calls and roaming services; and voice value-added services, such as caller identity display, call waiting, conference calls, and others. The company also provides wireless Internet service, as well as digital applications, including music, video, reading, gaming, and animation; and wireline broadband services. In addition, it offers dedicated line services to corporate customers in a range of industry sectors; and basic corporate communication products, such as corporate VPMN and SMS, as well as tailor made solutions. The company was formerly known as China Mobile (Hong Kong) Limited and changed its name to China Mobile Limited in May 2006. The company was incorporated in 1997 and is based in Central, Hong Kong. China Mobile Limited is a subsidiary of China Mobile Hong Kong (BVI) Limited.

Recent News:

The company reported 4.6% year-on-year profit growth to CNY92.1 billion for the first nine months of the year, on 4.9% higher revenue of CNY569.5 billion.

It will spend 2.0 billion yuan ($303.04 million) on customer subsidies for IoT services technology in 2018. It expects 4G customers to exceed 700 million in 2018 from 625 million now.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

CHL’s strengths can be seen in its strong profitability and robust solvency compared with its peers. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator, RSI (14) stands at 57.62 with positive bias. We rate China Mobile Limited (CHL) a STRONG BUY.

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