Chunghwa Telecom Co (CHT) AI Stock Analysis

• Market Cap: $34.15B
• Dividend Yield: 3.81%
• Average Volume (3M): 115.92K
• Price to Earnings (P/E): 28.8
• Beta (1Y): 0.23
• Revenue Growth: 3.12%
• EPS Growth: 3.14%
• Country: US
• Employees: 19,912
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.44
• Shares Outstanding: 775,744,700
• 10 Day Avg. Volume: 127,906
• 30 Day Avg. Volume: 115,917
• PEG Ratio: 40.89
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 4.17
• P/FCF Ratio: 19.09
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 0.42
• Enterprise Value/Ebitda: 0.41
• 1Y Price Target: $50.00
• Price Target Upside: 14.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: $50.00 ▲(14.23% Upside)

Chunghwa Telecom's strong financial performance and positive earnings call are the most significant factors contributing to its overall score. The company's leadership in the Taiwan mobile market and growth in the ICT segment further bolster its position. However, the high P/E ratio suggests potential overvaluation, and technical indicators show a neutral trend, which slightly tempers the overall score.

Chunghwa Telecom Co Business Overview & Revenue Model

Company Description

Chunghwa Telecom Co., Ltd., together with its subsidiaries, provides telecommunication services in Taiwan and internationally. It operates through Domestic Fixed Communications Business, Mobile Communications Business, Internet Business, International Fixed Communications Business, and Others segments. The company offers local and domestic long-distance telephone, broadband access, and related services; information and communication technology and VAS services; and interconnection with its fixed-line network to other mobile and fixed-line operators. It also provides mobile; HiNet Internet, data communication, and cloud; Internet data center; and international long-distance telephone and data services. In addition, the company distributes and sells mobile handsets, data cards, electronic materials, and computing and business machinery equipment and software; designs, develops, manufactures, sells, and services semiconductor testing components, printed circuit boards, and electronic components and finished products, and automatic license plate recognition software and hardware products. Further, it offers real estate development and property management; system, network, and communications integration; intelligent buildings and energy network; digital information supply and advertisement; property and liability insurance agency; family education; computing equipment installation; management consultancy; data processing; telecommunication engineering; Internet identify; and information and communication solution services. Additionally, the company provides software design services, and Internet contents production and play services; motion picture production and distribution; and energy saving solutions and international circuits, and services for electronic parts and machinery processed products. The company was incorporated in 1996 and is headquartered in Taipei City, Taiwan.

How the Company Makes Money

Chunghwa Telecom generates revenue primarily through several key streams: mobile telecommunications services, fixed-line services, and broadband internet services. Its mobile segment, which includes voice and data services, is a significant source of income, bolstered by a large subscriber base. The fixed-line segment, though experiencing a decline in traditional voice services, continues to contribute through value-added services and enterprise solutions. Broadband internet services also represent a crucial revenue stream, particularly as demand for high-speed internet grows. Additionally, CHT has diversified its revenue through partnerships with technology firms, enabling it to offer cloud computing and digital services. This diversification helps stabilize revenue and expand its market reach. The company also benefits from government contracts and infrastructure projects, further enhancing its earnings potential.

Chunghwa Telecom Co Financial Statement Overview

Summary

Chunghwa Telecom demonstrates strong financial health with consistent profitability, a solid balance sheet, and stable cash flows. The company is well-positioned in the telecommunications industry, with low leverage and effective cost management. While free cash flow growth has seen some fluctuations, the overall financial stability and profitability provide a positive outlook.

Income Statement

Chunghwa Telecom shows strong profitability with consistent gross and net profit margins over the years. The TTM (Trailing-Twelve-Months) data indicates a slight revenue growth rate of 1.12%, which is a positive sign of stability in a competitive industry. The EBIT and EBITDA margins are robust, reflecting efficient operations and cost management.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.11, indicating low leverage and financial stability. The return on equity (ROE) is solid at approximately 9.93% in the TTM period, showcasing effective use of shareholder funds. The equity ratio is strong, suggesting a well-capitalized position.

Cash Flow

Chunghwa Telecom's cash flow position is stable, with a slight decline in free cash flow growth in the TTM period. However, the operating cash flow to net income ratio remains close to 1, indicating good cash generation relative to net income. The free cash flow to net income ratio is healthy, supporting ongoing investments and shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	232.46B	229.97B	223.20B	216.74B	209.44B	207.61B
Gross Profit	84.46B	83.39B	81.43B	78.99B	74.33B	70.58B
EBITDA	87.84B	81.92B	87.58B	86.90B	79.37B	79.40B
Net Income	37.94B	37.22B	36.96B	36.36B	35.62B	33.42B
Balance Sheet
Total Assets	544.48B	534.30B	523.74B	523.20B	513.07B	506.38B
Cash, Cash Equivalents and Short-Term Investments	73.95B	57.94B	53.28B	53.00B	43.28B	35.02B
Total Debt	43.65B	43.23B	43.64B	43.47B	38.91B	38.24B
Total Liabilities	164.86B	136.39B	131.02B	129.43B	121.81B	117.12B
Stockholders Equity	366.73B	382.83B	382.31B	379.12B	377.38B	377.93B
Cash Flow
Free Cash Flow	47.92B	50.25B	43.58B	42.52B	39.27B	3.34B
Operating Cash Flow	79.30B	79.24B	74.56B	75.95B	74.86B	74.46B
Investing Cash Flow	-40.86B	-35.33B	-50.17B	-30.79B	-31.17B	-68.25B
Financing Cash Flow	-41.03B	-41.52B	-40.73B	-34.80B	-34.31B	-9.80B

Chunghwa Telecom Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 43.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHT, the sentiment is Negative. The current price of 43.77 is below the 20-day moving average (MA) of 44.19, below the 50-day MA of 44.37, and above the 200-day MA of 40.79, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 39.47 is Neutral, neither overbought nor oversold. The STOCH value of 4.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHT.

Chunghwa Telecom Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHT	75 Outperform	$34.15B	28.76	9.95%	3.81%	3.12%	3.14%
TLK	74 Outperform	18.47B	13.03	17.30%	6.82%	-5.13%	-5.90%
VIV	72 Outperform	19.81B	19.63	7.96%	4.66%	-6.51%	-0.21%
AMX	68 Neutral	63.76B	21.70	11.57%	2.50%	-0.64%	56.92%
VOD	60 Neutral	27.59B	-6.40	-7.90%	4.33%	0.89%	-494.16%
TEF	52 Neutral	28.84B	-11.41	-13.79%	7.07%	-4.73%	-251.31%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Chunghwa Telecom Co Corporate Events

Chunghwa Telecom Engages Investors at UBS Conference

On September 15, 2025, Chunghwa Telecom Co., Ltd. announced its participation in an investor conference organized by UBS, which took place at W Taipei. This engagement underscores the company’s ongoing efforts to maintain transparency and communicate its strategic initiatives to investors, potentially impacting its market perception and investor relations positively.

Chunghwa Telecom Reports August 2025 Financial Results and Participates in JPMorgan Conference

Chunghwa Telecom announced its participation in an investor conference hosted by JPMorgan in Tokyo, Japan, on September 10-11, 2025. Additionally, the company reported its unaudited operating results for August 2025, with revenue reaching approximately NT$18.56 billion and net income attributable to stockholders of NT$3.16 billion. The company’s performance for the first eight months of 2025 showed a revenue of NT$150.27 billion, reflecting a 3.50% increase compared to the same period in 2024. These results indicate a stable financial performance, which could positively impact stakeholders’ confidence.

Chunghwa Telecom Subsidiary Acquires Right-of-Use Assets

On August 19, 2025, Chunghwa Telecom Co., Ltd.’s subsidiary, CHYP Multimedia Marketing & Communications Co., Ltd., announced the acquisition of right-of-use assets from its parent company. This transaction involves office premises located in Taipei City and Yilan County, with a total transaction amount of approximately NT$31.3 million. The acquisition is part of the company’s strategic move to optimize its operational costs and business requirements by utilizing related party transactions.

Chunghwa Telecom Reports Financial Statement Differences for H1 2025

On August 11, 2025, Chunghwa Telecom announced differences in its consolidated financial statements for the first half of 2025 under Taiwan-IFRSs and IFRSs. The discrepancies primarily stem from the timing of income tax recognition on unappropriated earnings and revenue recognition practices for fixed-line services and prepaid phone cards. These adjustments reflect the company’s transition from state-owned enterprise regulations to commercial accounting standards, impacting reported net income and equity but not affecting total equity.

Chunghwa Telecom Reports Strong July 2025 Financial Results

On August 11, 2025, Chunghwa Telecom Co., Ltd. reported its unaudited operating results for July 2025, revealing a revenue of approximately NT$19.18 billion and a net income attributable to stockholders of NT$3.20 billion. The company’s performance for the first seven months of 2025 showed a revenue of NT$131.72 billion, marking a 3.85% increase compared to the same period in 2024. This growth reflects a robust operational performance, with a notable 7.92% increase in net sales for July 2025 compared to July 2024, indicating a strong market position and positive momentum for stakeholders.

Chunghwa Telecom Announces Director Re-appointment and Strong H1 2025 Financial Results

On August 8, 2025, Chunghwa Telecom Co., Ltd. announced the re-appointment of Chi-Hwa Chern as the representative of the juristic person director, succeeding Shin-Yi Chang. This change is part of the company’s ongoing governance adjustments. Additionally, the company released its consolidated financial statements for the first half of 2025, reporting a net profit of 20,800,437 thousand NTD, indicating a stable financial performance. The financial results reflect Chunghwa Telecom’s strong market position and operational efficiency, which are crucial for its stakeholders.

Chunghwa Telecom Reports Strong Q2 2025 Results and Typhoon Danas Donation

On August 4, 2025, Chunghwa Telecom Co., Ltd. announced a philanthropic donation of 10 million NTD to the Disaster Relief Foundation to aid those affected by Typhoon Danas in Taiwan. Additionally, the company reported its unaudited consolidated operating results for the second quarter of 2025, showcasing a 4.8% increase in total revenue to NT$ 56.73 billion. This growth was driven by strong performances in core telecom services and enterprise ICT business, despite challenges in the international segment. The company achieved record highs in mobile market share and continued to expand its presence in high-growth overseas markets, reinforcing its position as a leading digital enabler.

Chunghwa Telecom Issues NT$3.5 Billion Sustainability Bonds

On July 24, 2025, Chunghwa Telecom Co., Ltd. announced supplemental information regarding its first issuance of unsecured corporate bonds in 2025, approved by the Board of Directors on August 9, 2024. The issuance, amounting to NT$3.5 billion, is aimed at funding environmental protection and social development projects, reflecting the company’s commitment to sustainability. The bonds, with a 5-year issuance period and a 1.73% annual coupon rate, are being offered publicly through underwriting, with KGI Securities Co., Ltd. as the lead underwriter and the Bank of Taiwan serving as the trustee.

Chunghwa Telecom Invests in AUG East Submarine Cable Project

On July 17, 2025, Chunghwa Telecom Co., Ltd. announced its joint investment with other network service providers in the construction of the AUG East submarine cable. This strategic investment, with Chunghwa’s contribution exceeding NT$ 2.4 billion, aims to increase international transmission bandwidth and diversify cable routes, thereby optimizing telecom services for customers. The project is expected to strengthen Chunghwa Telecom’s industry positioning by enhancing its network capabilities and service offerings.

Chunghwa Telecom Reports Strong June 2025 Financial Results

On July 10, 2025, Chunghwa Telecom Co., Ltd. announced its unaudited operating results for June 2025, reporting a revenue of approximately NT$19.16 billion and a net income of NT$3.42 billion. The company also highlighted a 5.80% increase in net sales compared to June 2024, reflecting a positive growth trajectory. The financial results underscore Chunghwa Telecom’s stable performance in the telecommunications industry, potentially reinforcing investor confidence and market positioning.

Chunghwa Telecom Announces Q2 2025 Results Conference Call

On July 2, 2025, Chunghwa Telecom announced that it will hold a conference call to discuss its second-quarter results for 2025. This teleconference, scheduled for August 5, 2025, aims to provide institutional investors with detailed insights into the company’s financial performance and strategic direction, potentially impacting stakeholders’ perspectives on the company’s market positioning.

Chunghwa Telecom Invests in AUG Submarine Cable Construction

On June 27, 2025, Chunghwa Telecom Co., Ltd. announced its joint investment with other network service providers in the construction of the AUG submarine cable. This strategic investment, with Chunghwa’s contribution exceeding NT$ 2.4 billion, aims to increase international transmission bandwidth and diversify cable routes, thereby enhancing telecom services for customers. The project involves collaboration with NEC as the supplier, selected through an open bid process, and signifies a significant step in strengthening the company’s infrastructure and market positioning.

Chunghwa Telecom Subsidiary Announces Strategic Asset Transactions

On June 18, 2025, Chunghwa Telecom Co., Ltd.’s subsidiary, Honghwa International Corporation, announced two major transactions involving right-of-use assets. The subsidiary disposed of a right-of-use asset located in Taichung City, resulting in a gain of NT$2,966. Additionally, it acquired a right-of-use asset involving 289 stores in Taipei City, with a total transaction amount of NT$53,831,490. These strategic moves are part of the company’s operational policy to optimize its asset management and align with business requirements, potentially impacting its market positioning and stakeholder interests.