China Mobile Limited
SEHK-941
Company Overview
China Mobile Limited provides mobile telecommunications and related services in Mainland China and Hong Kong. Its businesses primarily consist of mobile voice and data business, broadband, and other services. As of December 31, 2021, the company served a total of 957 million mobile customers and 240 million wireline broadband customers. It also offers telecommunications network planning, design, and consulting services; roaming clearance, IT system operation, and technology support services; value-added platform development and maintenance services; mobile data, and system integration and development services; network construction and maintenance, network planning and optimizing, and training services; electronic communication products design and sale of related products; and non-banking financial services. In addition, the company provides mobile cloud research and development services; call center services; e-payment, e-commerce, and Internet finance services; and mobile Internet digital content services, as well as operates a network and business coordination center. 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.
Name
China Mobile Limited
CEO
Biao He
Website
www.chinamobileltd.com
Sector
Wireless Telecommunication Services
Year Founded
1997
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Bulls Say
China Mobile dominates the Chinese wireless telecom sector with a market share of around 61%.
The firm generates significant free cash flow, which has provided it with the strongest balance sheet in the telecom world--and one of the strongest, period--despite significant capital expenditures to build out its 5G network.
China Mobile has the opportunity to leverage its brand, network and technical knowledge to build a strong position in the potentially lucrative cloud services market in China.
Bears Say
China Mobile is controlled by the Chinese government, whose objectives may not align with the interests of minority shareholders. In particular, the government would like to see more parity among the three operators and generally lower prices.
The tower company joint venture requires the sharing of mobile tower infrastructure, so China Mobile may face difficulties maintaining superior network coverage.
China Telecom, in particular, has been taking mobile market share from China Mobile. New entrant, China Broadnet, could also cause some short-term pricing pressure.