China Mobile Limited (NYSE stock symbol, CHL) is a Chinese state-owned telecommunications company that provides mobile voice and multimedia services through its nationwide mobile telecommunications network, which is the largest of its kind anywhere in the world.
The company is also the largest mobile telecommunications company by market capitalization. It’s listed on both the New York Stock Exchange (NYSE) and the Hong Kong Stock Exchange (HKSE). As of January 2012, China Mobile is the world’s largest mobile phone operator with about 655 million subscribers.
China Mobile is controlled by the government of the People’s Republic of China but approximately 30% of its shares are listed on the NYSE and the Hong Kong stock exchanges.
China Mobile has dominated Chinese mobile services since its inception, as of 2010 China Mobile controls the vast majority of the Chinese domestic mobile services market with around 70% market share. The other major players in the market are China Unicom and China Telecom who have 20% and 10% shares, respectively.
What is China Mobile Stock worth Today?
China Mobile is currently trading at around $54.00 on the NYSE, giving the company a market capital of $219 billion, making them the largest mobile phone operator in the world in terms of market cap and number of subscribers.
Just to put China Mobile into context, at their current market cap they’re twice the size of Verizon who have a market cap of around $112 billion. Their revenue per customer is quite low however, Verizon only have 94 million customers which is a sixth of the number China Mobile has and yet generates $106 billion in revenue, against the $74 billion of China Mobile.
China Mobile Stock History Chart
China Mobile Stock Price History
China Mobile has performed quite well in recent years; its growth has been phenomenal and shows no signs of slowing down. With over 655 million subscribers it represents around half of China’s population and it could easily grow by 50% over the next five years.
The stock outperforms the S&P 500 by around 2:1, growing by around 20% each year. This level of growth is sustainable for the next few years and possibly longer, due to new 4G networks being launched and a sharp increase in revenue per customer. After that growth will start to stagnate as the market reaches maturity.
China Mobile Stock Split History
China Mobile has had just one stock split in its history, the split was 4:1 and took place on Jul 5th, 2000 with the stock trading at 177.94 on the previous days trading and closed at 43.38 the day after, resulting in a loss of -2.48%.
When Will China Mobile Stock Split Again?
The Chinese mobile phone market is one of the largest in the world and has yet to meet its full potential. Therefore a future split is more than likely, although not at the current price. You should expect the price to reach at least 200 before a split is considered again.
Does China Mobile Stock Pay a Dividend?
China Mobile pays a dividend every quarter; which usually amounts to a yield of around 3% per year, this is an extremely high yield compared to their rivals in the same sector. This yield has remained constant for the last few years and should continue at this level for the foreseeable future.
Should You Invest in China Mobile Stock?
China Mobile is a definite buy at the moment, their home market is still a long way from maturity and the company should be able to maintain its current growth rate for the next few years at least.
With strong levels of growth predicted along with a relatively high dividend you don’t need to be a rocket scientist to realize the investment opportunity here. But there’s more, the revenue per customer is quite small compared to its global rivals, but this is changing as faster networks are rolled out.
In the last year alone China Mobiles revenue per customer has grown by 10%, this shows the huge potential of the company and proves they’re not just focusing on acquiring new customers, but also increasing the amount of money they spend. They’re also investing $21 billion in new LTE 4g networks, which will further increase the amount of revenue they receive per customer.
All in all the future looks bright for China Mobile, there’s no shortage of new customers and the customers they have are spending more with the company. If you want to invest in China Mobile, make sure you get the best deal by checking out our list of top 4 online brokers.