CHINA MOBILE(941)
Analysis:
Household broadband market has become an important growth driver for China Mobile (941) in recent years.
In the first half of 2018, net growth in household broadband customers reached 18.8 million, accounting for 57% of the total number of net additional customers in the industry, driving the total number of its household broadband customers to 128 million.
The number of customers who have opted for its higher-end products is also increasing, with 42.5% of its customers using broadband with bandwidth of 100 Mbps or above, up by 20.5 percentage points from the end of 2017.
House hold broadband revenue reached RMB21 billion, representing a year-on-year increase of 49.1% and becoming an important revenue growth driver.
High network quality and compelling content applications have driven the continued growth in customer value.
In the first half of 2018, household broadband blended ARPU reached RMB34.8, or an increase of 7.3%. (I do not hold the above stock)
Strategy:
Buy-in Price: $71.50, Target Price: $74.50, Cut Loss Price: $70.00
Source: Phillips