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China Telecom Corporation Limited (CHA)

  • Thu, Nov. 5, 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)
    | Thu, Nov. 5, 9:39 PM | 1 Comment
  • Wed, Oct. 14, 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)
    | Wed, Oct. 14, 9:49 AM | 1 Comment
  • Tue, Oct. 13, 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)
    | Tue, Oct. 13, 10:08 AM | 1 Comment
  • Mon, Oct. 12, 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)
    | Mon, Oct. 12, 9:34 AM | 1 Comment
  • Mon, Sep. 21, 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.
    | Mon, Sep. 21, 9:44 AM | 3 Comments
  • Mon, Aug. 24, 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)
    | Mon, Aug. 24, 1:55 PM | Comment!
  • Fri, Aug. 21, 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)
    | Fri, Aug. 21, 1:16 PM | 1 Comment
  • Fri, Jul. 31, 12:57 PM
    • China Unicom (NYSE:CHU) is up 1.4% on standard volume after HSBC upgraded shares to Hold, from Reduce.
    • Analysts' mean recommendation is inching toward a Buy. Consensus price targets are at $19.40, implying more than 37% upside from here.
    • China Unicom has had a choppy year and is down 25.8% over the past three months, but is still up 4.9% YTD.
    • Also moving today in U.S. trading: peers China Telecom (CHA +1%) and China Mobile (CHL +2.3%).
    | Fri, Jul. 31, 12:57 PM | Comment!
  • Mon, Jul. 20, 9:42 AM
    • China Tower -- the state-owned company built of the pooled wireless towers of China Mobile (CHL +0.3%), China Telecom (CHA +0.6%) and China Unicom (CHU -1.5%) -- will raise as much as 60B yuan (about $9.7B) in a private placement to outside investors, Bloomberg reports.
    • The companies will put a combined 300B yuan of assets into China Tower by the end of August.
    • It's of a piece with China encouraging private investment in state-owned industries to fight slowing growth. With the sensitive nature of telecom, though, only domestic investors may be invited to China Tower's placement.
    • With 40% of the tower venture, market leader China Mobile has the biggest stake.
    | Mon, Jul. 20, 9:42 AM | 1 Comment
  • Fri, Jul. 10, 2:15 PM
    | Fri, Jul. 10, 2:15 PM | 1 Comment
  • Tue, Jul. 7, 9:53 AM
    • A continuing rout in China is pressing the country's mobile providers.
    • In U.S. trade, China Telecom (NYSE:CHA) is off 5.6%; China Unicom (NYSE:CHU) down 4.9% and China Mobile (NYSE:CHL) down 2.9%.
    • Hong Kong's PCCW (OTCPK:PCCWY) is off 6.2% in over-the-counter trading as well.
    • The Shanghai Composite is back to a selloff despite a rash of support measures from Beijing. Several hundred companies have taken the risky move of filing for a trading halt in Shanghai and Shenzhen in an attempt to escape the downdraft.
    | Tue, Jul. 7, 9:53 AM | Comment!
  • Mon, May 18, 2:39 PM
    • After closing lower in Hong Kong, China's big three wireless carriers are down in U.S. trading, giving back Friday gains after saying they'd cut data prices and boost speeds in an effort that could push migration to 4G.
    • In the U.S., China Mobile (NYSE:CHL) is down 4.1%; China Telecom (NYSE:CHA) is down 4.1% and China Unicom (NYSE:CHU) down 3.2%.
    • The state-owned firms have gotten a push from Premier Li Keqiang to expand Internet access. Leader China Mobile will cut mobile data prices by at least 35% this year; China Unicom plans cuts of 20% or more per megabyte, and China Telecom is looking at average cuts of 30%/megabyte.
    • The move means a change in short-term revenue but could raise profits depending on the migration rate to more lucrative 4G accounts and usage.
    • Previously: China mobile infrastructure spending jumped 51% in 2014 (Apr. 21 2015)
    | Mon, May 18, 2:39 PM | Comment!
  • Tue, Apr. 21, 9:11 PM
    • Mobile infrastructure spending in China rose 51% last year, according to an Infonetics report, primed by "robust" TD-LTE deployments at wireless leader China Mobile (NYSE:CHL) and W-CDMA expansions at China Unicom (NYSE:CHU).
    • Those increases countered a significant capex cut by third competitor China Telecom (NYSE:CHA).
    • China Mobile in particular had a goal of raising TD-LTE rollouts from 150K TD-LTE eNodeBs to 500K, but ended the year with 720K in a next-gen push. The company has 60% of China's mobile subscribers.
    • The mobile operators added 58M subscribers in 2014 to push the total market to 1.3B subscribers.
    • Gains today: China Mobile (CHL) up 4.3%; China Telecom (CHA) up 1.5%; China Unicom (CHU) up 3%.
    • Previously: China telecoms: Providers gain again; Unicom adds 1.6M net subs (Apr. 21 2015)
    • Previously: Chinese wireless firms up on PBOC easing; China Mobile notes Q1 results (Apr. 20 2015)
    | Tue, Apr. 21, 9:11 PM | Comment!
  • Tue, Apr. 21, 11:16 AM
    • Chinese telecom providers are up for a second straight day following China's stimulus.
    • In U.S. trading, China Mobile (NYSE:CHL) is up 4.6%; China Telecom (NYSE:CHA) is up 1.8%; and China Unicom (NYSE:CHU) is up 3.4%.
    • China Mobile had previously jumped 7.5% in Hong Kong, while China Unicom had gained 3.6% there.
    • In March operations, China Unicom pointed to net added mobile subscribers of 1.6M to bring its total there to 294.75M; net added fixed-line broadband subscribers of 375K to bring that total to 69.6M; and a net loss in local access subscribers of 579K to bring that total down to 80.3M.
    • China Telecom signed a deal with payments platform SmartTrans to bring financial news and info to subscribers through its "Love Finance" offering, to be promoted through mobile news, texts and WAP channels. Subscribers to that product will pay 5 yuan/month.
    • Previously: Chinese wireless firms up on PBOC easing; China Mobile notes Q1 results (Apr. 20 2015)
    | Tue, Apr. 21, 11:16 AM | Comment!
  • Mon, Apr. 20, 7:35 PM
    • Chinese wireless firms jumped in U.S. trading today in reaction to new easing from China, where the central bank cut its reserve requirement ratio a percentage point to 18.5%
    • China Mobile (NYSE:CHL) gained 5.4% today and is up another 3.2% after hours; China Telecom (NYSE:CHA) closed up 4.9%; and China Unicom (NYSE:CHU) closed up 5.3% (and is up now 0.2% after hours).
    • China Unicom was among leaders among Hong Kong stocks today, trading 2.2% higher there, while China Telecom was up 2.8%.
    • China Mobile provided unaudited key indicators from its Q1, noting that while operating revenue was up 3.9% Y/Y (to 160.9B yuan) and EBITDA up 2.8% (to 59.2B yuan), net profit slipped 5.6% Y/Y to 23.8B yuan.
    • As the substitution impact of over-the-top business (including apps like Tencent's WeChat) on China Mobile's traditional business "continued to intensify, voice services and SMS and MMS services further declined," the company noted, with voice and SMS usage down 1.3% and 4.5% respectively.
    • "The Group is at a critical stage of transformation of its development," writes Chairman Xi Guohua, noting that capex and cost input continue to remain high amid heavy demand for resources from 4G construction, business development and customer retention.
    | Mon, Apr. 20, 7:35 PM | Comment!
  • Wed, Apr. 8, 10:30 AM
    • China's mobile firms have ramped up considerably today in U.S. trading as regulators work toward transferring 1M cell towers to a state-backed joint venture among the three.
    • The transfer to China Tower -- the joint venture between China Mobile (CHL +6.5%), China Telecom (CHA +9%) and China Unicom (CHU +4.2%) -- should allow the three to book a steroidal 148B yuan ($23.9B) in one-time gains.
    • Details of the transfer are sketchy, but China's government plans to wrap it by Aug. 15.
    • China Mobile holds a 40% stake in China Tower, and China Unicom and China Telecom split the remaning 60%.
    | Wed, Apr. 8, 10:30 AM | Comment!
Company Description
China Telecom Corp Ltd along with its subsidiaries is an integrated information service company. It offers telecommunications services, including wireline voice services, mobile voice services, Internet access services, value-added services.
Sector: Technology
Country: China