China Mobile Beats Estimates; Reports Continued Strong Growth in Urban Areas; Stock Up 1% in Early Trading (CHL)

| About: China Mobile (CHL)

China Mobile (ticker: CHL) issued a press release (not available on Yahoo Finance) announcing FY 2005 earnings results earlier today. (You can also download a presentation accompanying those results here). Reaction to CHL's results:

From Marketwatch:

...China Mobile (ticker: CHL) the listed unit of China's largest mobile operator by subscribers, said its 2005 net profit rose 28% from the previous year, higher than market forecasts, on strong subscriber growth. The group reported net profit for the year of 53.55 billion yuan ($6.6 billion), up from 41.75 billion yuan in 2004.

The result exceeded the average forecast of 50 billion yuan from 24 analysts polled by Thomson Financial.

"The net profit is a little bit higher than expected, but it's not enough to boost the market," said Kenny Tang, associate director of Tung Tai Securities in Hong Kong. "Maybe it will help the [China Mobile's] share price a little bit, but I think HK$38 remains strong resistance."

From the WSJ (sub req):

The company's blended average revenue per user per month fell to 90 yuan, from 92 yuan in 2004. The figures include those from provincial networks it acquired mid-2004 on a pro-forma basis.

Analysts said the drop in China Mobile's ARPU -- a key statistic in the business -- is stabilizing, having fallen sharply from 99 yuan in 2003.

From Reuters:

The carrier's stock trades at around 15 times prospective earnings, slightly pricier than Vodafone Group's (ticker: VOD) 12 and NTT Docomo's (ticker: DCM) 13, according to Reuters Estimates.

The telecom stocks' performance hinges on when Beijing will launch the 3G licence," said Marco Mak, an analyst with Tai Fook Research Ltd. "We expect that will have a negative impact on the existing telecom stocks as competition will intensify."

CHL 1-Yr Price Performance: