Monday, January 27, 2014
China Mobile – Big on Upside
China Mobile Ltd. (CHL) is the largest mobile services provider in the most populous country in the world. A state-owned enterprise, it is headquartered in Hong Kong, but services customers residing on mainland China as well. The company boasts the largest wireless services subscriber base in the world, and the largest wireless network in China.
China’s dynamic economy has taken on a new shape over the last three decades owing to massive urbanization. Rural to urban migration is at the highest levels in the country’s history, and China Mobile has already gained much from the trends. However, we expect more growth going forward, as a large portion of the Chinese wireless services market is still untapped.
China Mobile’s sales, as reported at the end of the first half of 2013 (1H13), totaled $48.9 billion – up 16% year-over-year (YoY). The compounded annual growth rate (CAGR) of sales over the preceding three years had been 13%. Its subscribers at the end of the period totaled 740 million – an increase of 8.5% YoY. As of 1H13, China Mobile’s subscriber base had been growing by an average 11.3% each year over the three preceding years.
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