Telecoms, Mobile Phones, 5G, Satellite Communications etc.

Re: Telecoms Sector

Postby winston » Mon Jul 27, 2009 8:14 am

BUY OR SELL-Chinese telcos-Time to take the call?

* Bulls like valuations, defensive appeal
* Bears see competition, slow demand weighing


By Parvathy Ullatil

HONG KONG, July 24 (Reuters) - Locked in what is developing into an intense battle for market share following an industry overhaul, some Chinese telecom companies have become pariahs among investors this year.

Shares in China Mobile (0941.HK) are down nearly 2 percent so far this year as monthly subscriber data reveals dents in its historically unchallenged market position, even as the broader market has rallied 38 percent. Nimbler rivals China Unicom (0762.HK) and China Telecom (0728.HK) have fared better, rising 20 percent and 42 percent, respectively.

But with market watchers forecasting a lull in the broader market in the third quarter, will Chinese telecom stocks find favour on the their appeal as defensive stocks?

VALUATIONS ATTRACTIVE

"While competitive threats for China Mobile are rising, the company will see the best earnings trend in the next 1-2 years. China Mobile also remains the most attractive on valuation," said Yvonne Chow analyst with Morgan Stanley.

Chow has an "overweight" rating on the index heavyweight with a target price of HK$90.5, compared with its current trading price of HK$77.10.

The stock leads the pack among its peers with 14 buy ratings and just one sell call from brokerages. It currently trades at less than 12 times its estimated earnings in 2009 compared with 17.6 times commanded by the Hang Seng Index .HSI constituents.

It is expected to be the top pick for investors given its significant liquidity and laggard status.

The slow adoption of 3G network services is also seen as a positive for China Mobile, whose 3G system is seen as the least popular among its peers, as its will ease some of the pressure on the company's bottom line.

( So what's gonna happen to the billions spent on 3G by China Mobile ? )

"It is still a growth sector and most of the uncertainty seems to be out of the way now. We don't really expect any surprises," said Bratin Sanyal, head of Asian equity at ING Investment Management Asia-Pacific

ABSOLUTELY NO CATALYSTS

"China Mobile is cheap but there are absolutely no catalysts for this stock, the news you are going to hear over the next 1-2 years is slowing growth, losing market share, more price competition, tariffs coming down and higher capital expenditure," said Elinor Leung, telecom analyst with CLSA.

( It's been along time that I've seen something sensible from an Analyst )

Leung has an "underperform" rating on China Mobile and Unicom while she rates China Telecom an "outperform".

China Mobile, which has been saddled with the untested, homegrown TD-SCDMA standard for its 3G network which limits its access to new handsets, reported lower subscriber growth numbers for a fourth straight month in June.

Earnings visibility at Chinese telecoms companies remains low, say analysts, as they are still in the process of fully rolling out their 3G services and acquiring handsets.

"On a global scale, there are simply better stories on offer at similar valuation multiples, such as leading telcos in Indonesia and Africa," said James Gautrey, global equity analyst, teleco sector at Schroders.

Telecom companies in Indonesia, touted as another major domestic consumption story in Asia this year, are trading at 11.8 times their estimated earnings with top firm Telekomunikasi Indonesia Tbk PT (TLKM.JK) valued at 14.3 times.

India's Reliance Communications (RLCM.BO) is trading at 11.8 times while South Africa's MTN (MTNJ.J) is value at 12.2 times.
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Re: Telecoms Sector

Postby winston » Wed Oct 21, 2009 8:09 am

View dulls for telcos by Derek Yiu, The Standard HK

China Mobile (0941), the world's largest mobile carrier, outperformed arch rivals China Unicom (0762) and China Telecom (0728) in the first three quarters this year but analysts expect its 3G services to further pull down its profit margins.

China Mobile's net profit rose 1.8 percent to 83.94 billion yuan (HK$94.85 billion). But net profit margin fell from 27.5 percent to 25.7 percent as usage rate for new clients slid and new marketing schemes were started.

Despite recording a 15.3 percent rise in operating revenue to 154.7 billion yuan, China Telecom's net profit fell 33.9 percent to 11.4 billion yuan as it had to spend more to draw users to its mobile business - recently bought from Unicom.

Profits at the telcos have been under pressure since they launched a US$58.5 billion (US$456.3 billion) plan to build new networks for multimedia content late last year.

China Unicom has launched the Apple iPhone and China Telecom is in talks with the producers of BlackBerry and Palm Pre. Analysts see the sector's competition turning fierce. China Mobile's EBITDA margin dropped 1.7 percentage points to 51.3 percent while China Unicom's slid 8.2 percentage points to 41.1 percent.

Guotai Junan analyst Tiffany Feng expects China Mobile's EBITDA to fall 2 percent in each of the next few years.

Michael Wong, a director at Convoy Investment Services, told Reuters: "In the future we have to see how the market reacts to China Mobile's OPhone and whether higher handset subsidies can consolidate its market share."

China Mobile chairman Wang Jianzhou said customer growth has shown signs of slowing. The firm gained 15 million cellular subscribers in the third quarter to 508 million.

During the same period, China Unicom added 2.4 million users for a total 143 million, while China Telecom drew 7.4 million more to reach 47 million.

http://www.thestandard.com.hk/news_deta ... 91021&fc=4
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Re: Telecoms Sector

Postby winston » Thu Jan 14, 2010 10:09 am

Chinese Telcos

DJ China To Speed Up Merging Of Telecom, Broadcast TV, Web Network

SHANGHAI (Dow Jones)--China will speed up the merging of the country's telecom, broadcast television and internet networks, as part of its efforts to advance its information and cultural sectors and enhance the quality of life for its people, the State Council said late Wednesday.

In a cabinet meeting presided over by premier Wen Jiabao Wednesday, China has mapped out the merger plans as follows: to work on the merger of broadcast TV and telecom networks in 2010-2012 on a trial basis, and then to include internet network into its merger efforts in 2013-2015, according to a statement posted on the Chinese government's Web site.

Source; Michelle Ng, Dow Jones Newswires
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Re: Telecoms Sector

Postby winston » Thu Jan 14, 2010 12:23 pm

Not vested.

DJ MARKET TALK: China Mobile Winner From Telecom Convergence-Citi

1145 [Dow Jones] Citigroup expects China's move to speed up merging of country's telecom, broadcast television and Internet networks will introduce competition into broadband Internet access market, only growth engine for fixed-line operators, which have also enjoyed near-monopoly in their own territories: China Telecom (0728.HK) in 20 south China provinces, China Unicom (0762.HK) in 10 north China provinces.

Tips China Telecom appears to have most to lose, followed by Unicom. Tips China Mobile (0941.HK) appears net winner as can enjoy expanded exposure from mobile TV while mobile Internet access is unlikely to be challenged by cable operators.

Adds, competition on fixed-line broadband Internet access might not be immediate, given the lack of a standardized two-way digital cable system, but will manifest in a few years.

Tips Buy ZTE (0763.HK), largest IPTV equipment provider, and China Communications Services (0552.HK), as major telecom infrastructure contractor should benefit from increased fixed line build-out.

Also tips Buy China Mobile, on view to benefit from cross-selling on mobile TV, weaker competition from CT/CU, which have been using fixed-line revenues to fund mobile expansion.

Source: Dow Jones Newswire
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Re: Telecoms Sector

Postby winston » Fri Jan 15, 2010 12:38 pm

Not vested.

DJ MARKET TALK:Telecom Gear Makers To Benefit From Convergence-KE

1213 [Dow Jones] HK-listed telecom equipment makers extend yesterday's sharp rally but stocks off intraday peaks. Mixed view on how much benefit China's plan to push 3-network (telecom, television, internet) convergence will deliver; Kim Eng agrees policy "carries weight from a thematic standpoint," but ultimate beneficiaries will vary between various business constituents.

Says benefit to telcos not clear-cut given lack of details, equipment suppliers "better bet," house's favorites include China Communications Service (0552.HK), lesser extent, ZTE (0763.HK), Comba Telecom (2342.HK).

Adds, content providers including A8 Digital (0800.HK), Tencent (0700.HK), DVN (0500.HK) may benefit as well. CCS +2.2% at HK$4.58, adding to 9.3% rally yesterday on volume spike.

Source: Dow jones Newswire
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Re: Telecoms Sector

Postby winston » Fri Jan 29, 2010 9:17 am

Chinese Telcoms

TOL:-

Industry capex likely to fall more than expected, esp for mobiles.

So may need to be careful if investing in ZTE & CCS
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Technology Sector

Postby winston » Mon Feb 15, 2010 7:30 pm

UN: 4.6B mobile phone subscriptions worldwide

Staff
AP Features

Feb 15, 2010 05:40 EST

The number of mobile phone subscriptions worldwide has reached 4.6 billion and is expected to increase to five billion this year, the U.N. telecommunications agency said Monday.

Mobile phone providers in rich countries offer advanced services and handsets, while people in developing countries increasingly use the mobile phone for health services and banking, said the International Telecommunication Union (ITU).

"Even during an economic crisis, we have seen no drop in the demand for communications services," said the agency's Secretary-General Hamadoun Toure.

"The simplest, low-end mobile phone can do so much to improve health care in the developing world," Toure said in a statement, citing examples of patients receiving reminder messages on their mobile phone ahead of a medical appointment or text messages instructing them how to take complex medication.

The number of mobile broadband subscriptions worldwide is expected to exceed one billion this year, the agency said. There were around 600 million such subscriptions at the end of 2009, it added.

Web access by people on the move, including through laptops and smart mobile devices, will probably surpass web access from desktop computers within the next five years, the agency said.

Source: AP Features
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Re: Telecoms Sector

Postby kennynah » Tue Feb 16, 2010 12:30 am

the ICT age will make a giant leap with another discovery in antenna technology; particularly in the science of fractal mathematics
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Re: Telecoms Sector

Postby mrEngineer » Wed Feb 17, 2010 1:19 am

winston wrote:Chinese Telcoms

TOL:-

Industry capex likely to fall more than expected, esp for mobiles.

So may need to be careful if investing in ZTE & CCS


any further comments on why capex will fall? I cant imagine when there are so much more subscriptions to be made available to rural areas..
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Re: Telecoms Sector

Postby winston » Wed Feb 17, 2010 8:51 am

Qualcomm CEO Sounds Off

Discussing mobility, the new Snapdragon chipset and a reflective screen for e-readers, with Paul Jacobs, Qualcomm CEO.

http://www.cnbc.com/id/15840232?video=1 ... estorPlace
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