1 / 10

China Mobile

China Mobile. Edmundo Lozano Ryan Mueller April 19, 2010. Company Background. Leading mobile services provider in China World’s largest mobile network World’s largest customer base: 533 mil Developer of the oPhone. Stock Information. Ticker: CHL Price (May 12, 2009): $48.59

lee-snider
Download Presentation

China Mobile

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. China Mobile Edmundo Lozano Ryan Mueller April 19, 2010

  2. Company Background • Leading mobile services provider in China • World’s largest mobile network • World’s largest customer base: 533 mil • Developer of the oPhone

  3. Stock Information • Ticker: CHL • Price (May 12, 2009): $48.59 • Number of Shares bought: 200 • Current Price: $50.30 • Shanghai Index vs CHL • 52-week range: $42.64 - $59.22

  4. Competition • China Unicorn (CHU) • Was granted license to operate 3G technology in China on Jan. 7, 2009 • Launched 3G network on October 1, 2009 • GSM and WCDMA • Capabilities include fixed-line voice, broadband internet, IT services, business and data communications services • Has an alliance with Apple to sell the iPhone in China

  5. WiFi and WAPI • WAPI = Wireless Authentication and Privacy Infrastructure • Chinese government has not provided full specification on its encryption algorithm • Techies speculate there are “backdoor” capabilities that allow government to monitor its users – consortiuminfo.org • WiFi Global standard?

  6. Industry

  7. May 12, 2009 • Q1 Profits of $3.69 billion • Q1 revenue increased 9.2% • 15-30% yearly annual growth • Has near monopoly in China • CHL has 460 million subscribers • Operating Margins: 35% • Very healthy balance sheet • Dividend payout ratio: 43%

  8. May 12, 2009 • Sell when one or more of the following risk factors occur: • Re-evaluate at $80 • If China floats is currency • The Chinese government does something to CHL or forces CHL to do something that is contrary to our best interests

  9. China’s 3G Network • CHL: In 9 months sold 2.3 million subscriptions: • About 8519 phones/day • CHU: In 1 month sold 1 million subscriptions • 33,333 phones/day

  10. Problems with TD • Shortage of handsets

More Related