中国电信估值.pdf

China Mobile 0941.HKB B BUY Elephant Can Run Our valuation is based on DCF. The target price we obtained is HK$136.6 which maintains our decision – BUY. Catalysts • Strong Increase in subscribers leads by rural market. Value-added services revenue increases substantially. MOU increment offsets the decreasing tariffs. U Stock Data The restructure announcement places a positive impact Price (Mar 25 2008) HK$112.5 because it removes the uncertainty that is negatively affecting the stock. Target Price: HK$136.6 The appreciation of Renminibi leads to a higher Upside/downside 21.4% valuation in Hong Kong Dollar. U DCF Valuation - Beta 1.23 - Market Risk Premium 7.6% - Risk Free Rate 4.0% - Terminal Growth Rate 3% Investment Fundamentals RMB 2007A 2008E 2009E 2010E 2011E U Price Performance Total Revenue m 356,959 438,520 501,994 546,517