China Mobile (CHL), the largest wireless carrier in the world, continues to deliver healthy operating results as demonstrated by strong subscriber retention in 2008.
As we approach the end of 4th quarter 2009, our opinion remains firm that new competitive entities face unanticipated challenges deploying and advancing services to levels and coverage delivered by China Mobile. Accordingly, we assess that successful expansion into low-penetration rural regions of China, coupled with aggressive 3G TD-SCDMA service deployments in 2009, establish China Mobile as the dominant mobile provider, far ahead of its nearest competitors.
Additionally, a strong balance sheet, strong free cash flow and sustainable dividends facilitate the company’s efforts to weather economic volatility. We maintain our Outperform rating even as we factor in potential resulting from competitive factors and a comparatively weaker Chinese economy though the end of 2009.Zacks Investment Research
