According to its website, Chunghwa Telecom (NYSE:CHT)
chiefly provides telecommunication and information-related services. Its scope of business covers city call, long distance calls, international calls, GSM, data communication, Internet services, broadband networking, satellite communication, intelligent network, mobile data and multimedia broadband.
Furthermore, the company boasts the following in regards to its subscriber base, range of services, and cooperation with international partners:
CHT is the largest telecommunication operator in Taiwan with a subscriber base of over 20 million. CHT has the largest range of services of any telecommunications operator in Taiwan with operations consisting of fixed line networks, GSM, and data networks throughout Taiwan and offshore islands. Of all the telecommunication companies operating in Taiwan, CHT has the closest cooperation with other international telecoms with circuits to over 200 other countries.
Corporate Governance is also sound as CHT recently was awarded the coveted Best Financial Disclosure Procedures in the Asia/Pacific Region by Technical Criteria in 2007. Just as important is the fact that CHT trades at significant discounts in terms of Price/Earnings and Price/Sales relative to its peers despite offering superior margins and comparable growth rates. Moreover, the company boasts a hefty dividend of 4.6%. The advent of 3rd Generation Cellular Technology should also be a strong catalyst for future earnings for CHT.
For these reasons, it is my belief that this company is a strong buy for long term investors. For purposes of disclosure, I have recently obtained shares in this company.
Disclosure: Author owns a position in CHT
CHT 1-yr chart