China Telecom Corporation Limited(CHA)- NYSE
  • Fri, Sep. 23, 11:31 AM
    • Goldman Sachs has changed its mind on China's state-owned telecoms, and made a switch.
    • In favor now is China Unicom (CHU +0.1%), added to the firm's Conviction Buy list from a previous Neutral stance, while China Mobile (CHL -1%) gets a downgrade to Neutral.
    • China Mobile declined 0.9% in Hong Kong today, while China Unicom picked up 4.3%.
    • China Mobile, the country's 4G market leader, is having the better year -- up 10.2% YTD in U.S. trading, vs. China Unicom's gain of 1.4% -- so analyst Donald Lu sees Unicom as "glass half full" and China Mobile as "half empty."
    • Rapid data growth is tailing off at China Mobile (170% to 104% from Q1 to Q2) and is heading to 72% in 2017, Lu says, while Unicom has 4G penetration of just 30% (vs. China Mobile's 54% and China Telecom's (CHA -0.1%) 46%).
    • China Unicom also has the biggest exposure to China Tower, which Goldman estimates is worth $47B and is headed for an IPO next year. That firm owns 98% of China's telecom towers.
    | Fri, Sep. 23, 11:31 AM | 1 Comment
  • Fri, Aug. 12, 11:18 AM
    • China Telecom (CHA +0.3%) has chosen Nokia (NOK +0.9%) in a partnership to expand 4G technology in 19 Chinese provinces.
    • The carrier is pursuing ubiquitous 4G coverage to improve access and speed up Internet, and to set up a planned 2017 launch of voice over LTE.
    • Nokia will use its Flexi MultiRadio 10 base stations in the deployment, and provide its global services unit to help design and manage the network.
    • China Telecom saw its 4G traffic sextuple last year, and it expects the high-speed network to account for more than 90% of its data traffic by 2017.
    | Fri, Aug. 12, 11:18 AM | 9 Comments
  • Wed, Mar. 23, 6:06 AM
    • China Telecom (NYSE:CHA): FY15 EPS of RMB0.248.
    • Revenue of RMB331.2B (+2.1% Y/Y).
    • The board declares final dividend of HK$0.095/share for FY15.
    | Wed, Mar. 23, 6:06 AM
  • Wed, Jan. 13, 11:49 AM
    • China Telecom (CHA +3.8%) and China Unicom (CHU +2.6%) are both up in U.S. trading, following on gains in China, after the smaller two of China's big three telecoms formed a deal to share a 4G buildout.
    • China Telecom and China Unicom both finished today up 3.8% in Hong Kong. Market leader China Mobile (NYSE:CHL) finished up 2.5% in Hong Kong and is up 1.5% in U.S. trading.
    • Worried that China Mobile is too big, the two smaller telecoms set a five-point future cooperation agreement, with the key being a potentially expensive rural build of the 4G network -- short of a merger that the new deal likely tables.
    • “Capex savings of 30-40% of the shared rural 4G network is possible (versus building alone) and related opex savings likely closer to 50%," says Bernstein Research's Chris Lane. Specifically, 19.1B yuan ($2.9B) and 18.6B yuan ($2.8B) in capex savings for China Telecom and China Unicom over the next five years.
    | Wed, Jan. 13, 11:49 AM | 2 Comments
  • Dec. 30, 2015, 12:09 PM
    • China Telecom's (CHA -0.9%) chairman/CEO resigned after the revelation that he's a target in an expanding corruption investigation.
    • Chang Xiaobing stepped down after being linked to the government's anti-graft probe, now three years old and widening. Chief Operating Officer Yang Jie will serve as interim chairman/CEO.
    • Chang had just become China Telecom's chairman in August after a government shuffle changed the chairmen at China's big three state-owned telecom firms.
    • He had previously chaired China Unicom; he's the most senior telecom industry figure to be connected to the probe, which has also targeted execs in the energy, auto and other sectors.
    | Dec. 30, 2015, 12:09 PM | 3 Comments
  • Dec. 28, 2015, 3:31 AM
    | Dec. 28, 2015, 3:31 AM | 2 Comments
  • Nov. 5, 2015, 9:39 PM
    • Market-leading Chinese telecom China Mobile (NYSE:CHL) is down 1.6% in Hong Kong Friday morning after a report in China's 21st Century Business Herald drops the rumor that its smaller rivals, China Telecom (NYSE:CHA) and China Unicom (NYSE:CHU), are set to share 4G base stations.
    • The smaller firms have a correspondingly smaller 4G base as China Mobile has made more inroads there. China Mobile has close to 250M 4G subscribers. China Telecom has fewer than 40M, and China Unicom (which doesn't specify its numbers) is targeting 100M by year-end.
    • Last month, Deutsche Bank noted that ""ARPU improvement has been elusive for CU due to its slower 4G ramp up vs. the peers and the flight to quality that seems to have occurred for users."
    • China Telecom is down 0.5% in Hong Kong, while China Unicom is down 0.4%.
    • Previously: China Mobile misses in Q3 despite rising earnings (Oct. 20 2015)
    • Previously: Chinese telecoms may gain if deregulation accelerates (Oct. 15 2015)
    | Nov. 5, 2015, 9:39 PM | 1 Comment
  • Oct. 15, 2015, 8:38 PM
    | Oct. 15, 2015, 8:38 PM
  • Oct. 14, 2015, 9:49 AM
    • Following earlier moves (and moves yesterday) in Hong Kong, the big three Chinese telecoms are up in U.S. trading after a reorg saw China following through on putting 231.4B yuan (about $36B) of infrastructure into a towers spinoff.
    • As expected, China Tower Corp. will be 38% owned by China Mobile (CHL +1.4%), and China Unicom (CHU +6.5%) and China Telecom (CHA +3.8%) will have about 28.1% and 27.8% respectively.
    • China Reform Holdings will own about 6%.
    • The move should help overhaul a bloated state sector as it cuts redundancy among assets and helps build out better and faster networks -- including building a network of electric car charging stations, Bloomberg said.
    • Earlier in Hong Kong, China Mobile finished down 1.6%; China Unicom up 0.4%; and China Telecom up 1%.
    • Previously: China Unicom may have most to gain from planned towers spinoff (Oct. 13 2015)
    • Previously: China telecoms up on reports of investment in China Tower venture (Oct. 12 2015)
    | Oct. 14, 2015, 9:49 AM | 1 Comment
  • Oct. 13, 2015, 10:08 AM
    • A second day of rallies got started for Chinese telecom firms after news that China Reform Holdings would put more than 10B yuan into the big three's towers spinoff.
    • Market leader China Mobile (CHL -0.6%) ended up in negative territory in Hong Kong, however, closing down 0.6%. China Telecom (CHA +2%) closed up 1.5%, while China Unicom (CHU +2.6%) closed up 4.1%.
    • China Unicom has the most to gain from tower reform, with the largest number of towers on a market-cap basis. China Unicom has 190,000 towers and a $33B market cap, while China Telecom has 125,000 towers with a $42.6B capitalization, and China Mobile has 450,000 towers with its $246B capitalization.
    • China Unicom could gain 23% off of the tower spinoff, says Nomura's Leping Huang: "Assuming China Reform takes a 6% stake, and CM/CU/CT maintain their 40:30:30 shareholding ratio, we estimate their stake in TowerCo is around 23% of CU’s current market cap, 18% of CT’s market cap and 4% of CM’s market cap, respectively."
    • Previously: China telecoms up on reports of investment in China Tower venture (Oct. 12 2015)
    | Oct. 13, 2015, 10:08 AM | 1 Comment
  • Oct. 12, 2015, 9:34 AM
    • China's big three telecoms have opened higher now that a spinoff of their tower assets is now more likely by the end of the month, amid reports that China Reform Holdings will inject more than 10B yuan ($1.58B) into the towers venture.
    • China Tower, the planned venture, would give China Reform Holdings a 6% stake in return for the investment. China Mobile (CHL +1.3%), China Unicom (CHU +5.1%) and China Telecom (CHA +3.6%) plan to take proportional stakes of 38%, 28.1% and 27.8% respectively.
    • Shares of the three moved up on heavy volume in Hong Kong: China Mobile +1.4%, China Unicom +5.7%, and China Telecom +4.2%. (via Barron's Asia)
    | Oct. 12, 2015, 9:34 AM | 1 Comment
  • Sep. 23, 2015, 1:09 PM
    • Chinese handset maker Xiaomi has launched its MVNO wireless service, which it's calling Mi Mobile.
    • As with other mobile virtual network operators, the company aims to simplify branding and consumer offerings while traveling on other companies' networks. In Xiaomi's case, it's using the 2G, 3G and 4G networks of China Telecom (NYSE:CHA) and China Unicom (NYSE:CHU).
    • Mi Mobile is marketing two SIM-only plans: one that charges 0.10 yuan per voice minute/SMS/MB, or an add-on that comes with 3 GB of data for 59 yuan/month ($9.24/month).
    • Xiaomi is out in front of a host of competitors (including Lenovo, Foxconn, Youku Tudou and Hisense) setting up MVNOs as China encourages competition for the state-owned telecoms.
    | Sep. 23, 2015, 1:09 PM
  • Sep. 21, 2015, 9:44 AM
    • Market leader China Mobile (CHL +2.7%) led mobile subscriber adds among the big three Chinese wireless firms for August, while China Unicom (CHU +0.8%) shed subs in a few areas as the month's customer numbers came in.
    • China Mobile added 1.3M net subscribers for mobile, to hit 820.1M customers, and its 4G base grew to 229.2M subs from 208.8M, while 3G customers fell to 202.6M from 209.8M.
    • Unicom lost 556,000 mobile subs to end up with 287.8M in August. The company lost 278,000 local access subs to end August with 77.4M. Mobile broadband users grew, though, by 4.7M subs to 167.6M, and fixed broadband grew by 478,000 to 71.53M.
    • Meanwhile, China Telecom (CHA +1.2%) added 900,000 mobile subs to end the month with 193.1M. It also grew fixed broadband slightly, to 110.5M accesses from 110M, and fixed telephony shrank slightly, to 137.6M lines in services from the previous 138.4M.
    | Sep. 21, 2015, 9:44 AM | 4 Comments
  • Aug. 24, 2015, 1:55 PM
    • In the wake of some "musical chairmen" today, Chinese telecoms that switched around leadership are off along with other U.S.-traded Chinese issues, though analysts are coming in with different takes on the outcome.
    • Market leader China Mobile (NYSE:CHL) is 5.3% lower on the NYSE as Jefferies Group cuts its price target to $76.13. Shares had closed on Friday at $62.87 and are currently at $59.61, implying near 28% upside from today.
    • China Telecom (NYSE:CHA) ADRs are similarly down 4.1%, to $55.95. Meanwhile, China Unicom (NYSE:CHU) is doing well in comparison, down just 2.4%, after Jefferies upgraded it to Buy, from Hold -- but with a lower price target.
    • Jefferies cut its target on CHU to $18.32, from $19.40. Shares closed Friday at $14 and are currently at $13.67, implying a 34% upside remaining from today's prices.
    • Jefferies had lowered its target on CHA to $71 on Friday. The firm maintains Buy ratings on all three of the Chinese telecoms.
    • Previously: China confirms chairman changes at its big three telecoms (Aug. 24 2015)
    | Aug. 24, 2015, 1:55 PM
  • Aug. 24, 2015, 3:34 AM
    • Confirming a speculated shuffle at China's top telecoms, China Telecom (NYSE:CHA) and China Unicom (NYSE:CHU) have swapped out chairmen, and market leader China Mobile gets a new chairman from the government.
    • Shang Bing, a vice minister at China's government regulator, takes over as chairman at China Mobile (NYSE:CHL), replacing retiring Xi Guohua.
    • China Unicom's chairman Chang Xiaobing will head to China Telecom, and China Telecom's chairman Wang Xiaochu takes over at China Unicom.
    • Shang, taking over at China Mobile, had previously been president in his own stints at China Telecom and China Unicom.
    • It's the biggest changeover in Chinese telecom (where the big three are state-owned) in many years, though China has tended to change out the leaders of the companies every few years.
    • Previously: China preparing to shuffle leaders of its three telecoms (Aug. 21 2015)
    • Previously: China Tower venture planning $10B private placement (Jul. 20 2015)
    | Aug. 24, 2015, 3:34 AM | 3 Comments
  • Aug. 21, 2015, 1:16 PM
    • China's getting ready to shuffle the leadership at its three telecoms amid an industry revamp -- but rumors have highly variable information about what the shakeup will look like.
    • Xi Guohua, chairman of the parent of market leader China Mobile (NYSE:CHL), will retire, to be replaced by government minister Shang Bing, Bloomberg and Caijing reported -- and similar changes would come to the leadership of China Telecom (NYSE:CHA) and China Unicom (NYSE:CHU).
    • But rumors persist that China Telecom Chairman Wang Xiaochu could return to lead China Mobile (where he was previously CEO), and that Shang Bing would take over at China Telecom instead.
    • China Unicom posted earnings earlier, and its Chairman Chang Xiaobing skipped the company's press conference to head instead to an important meeting in Beijing. The company's president, Lu Yimin, said he hadn't heard any notice about changing management, and indeed China Unicom's leadership may stay intact.
    • The result, though, may be the biggest overhaul to China's telecom industry since 2008.
    • The three companies still face an October deadline for asset injection into a mobile tower holding company that will absorb all their tower assets.
    • ADRs are up in U.S. trading: CHL +1.6%; CHA +5.7%; CHU +5.7%.
    • Previously: China Mobile Limited reported 1H results on Aug. 20 (Aug. 21 2015)
    • Previously: China Telecom reported 1H results on Aug. 20 (Aug. 21 2015)
    • Previously: China Unicom reports 1H results (Aug. 21 2015)
    | Aug. 21, 2015, 1:16 PM | 1 Comment