For Immediate Release
Chicago, IL – March 19, 2010 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: China Mobile (CHL), China Unicom (CHU), China Telecom (CHA), Google (GOOG) and Motorola (MOT).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Thursday’s Analyst Blog:
China Mobile Beats Forecasts
The world’s largest wireless carrier by users, China Mobile (CHL), announced full-year 2009 results with earnings per ADS of US$4.16 beating the Zacks Consensus Estimate of US$3.98. Net income increased 2.3% year-over-year to RMB115.2 billion (US$17 billion).
The Chinese wireless behemoth reported revenues of RMB452 billion (US$66 billion), up 9.8% year-over-year, partly driven by increased contribution from value-added services (29% of total sales). EBITDA increased 5.9% to RMB229 billion (US$34 billion) with the EBITDA margin equating to 50.7%.
China Mobile’s value-added business that includes SMS, Color Ring, MMS and Mobile Music continues to grow rapidly with revenues increasing 16% to RMB131 billion (US$19 billion). The carrier’s on-line mobile application store “Mobile Market” has been a key contributor to this growth. Usage fee revenues grew 9.8% to RMB286 billion (US$42 billion) accounting for approximately 63% of total revenues.
The company added 65 million subscribers during 2009 and exited the year with 522 million customers (nearly 8% of the global population!), up 14% year-over-year. ARPU (average revenue per user) was RMB77 (US$11) compared to RMB83 (US$12) a year ago with the decrease resulting from the company’s strategy to attract more rural subscribers to expand coverage regions.
China Mobile achieved its 43% dividend payout goal in 2009 as the Board of Directors has proposed a final dividend of HK$1.458 (RMB1.284). This, coupled with the interim dividend of HK$1.346 (RMB1.187), brings the total dividend for 2009 to HK$2.804 (RMB2.471) a share.
3G Buildout
During 2009, the company made significant progress in expanding its 3G network (based on the home-grown TD-SCDMA standard) covering roughly 238 Chinese cities, representing 70% penetration. At the end of the year, China Mobile had 3.4 million 3G subscribers and 87,000 3G base stations. So far, the operator has invested roughly RMB80 billion (US$12 billion) for its 3G network construction.
The company recently revealed its plans to build more than 80,000 3G base stations in 2010 to cover all Chinese regions with its 3G TD-SCDMA network. The carrier plans to complete the nationwide deployment of its 3G network in 2010 instead of 2011.
Heavy Competition
However, despite its strong market position (70% market share), China Mobile faces the threat of market share erosion due to stiff competition from its peers China Unicom (CHU) and China Telecom (CHA) as they both operate internationally acclaimed technology-based 3G networks.
China Mobile plans to launch up to 30 new TD-SCDMA smartphones in 2010. The devices (called Ophones) are being developed using the company’s proprietary “Open Mobile System (OMS)” smartphone operating system based on Google’s (GOOG) Android platform. The company has partnered with leading handset vendors such as Motorola (MOT), LG, Samsung and HTC for its Ophone project.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks “Profit from the Pros” e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
