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Chunghwa Telecom (CHT)
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Chunghwa Telecom Co (CHT) AI Stock Analysis

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Chunghwa Telecom Co

(NYSE:CHT)

Rating:73Outperform
Price Target:
$49.00
▲( 11.49% Upside)
Chunghwa Telecom's overall stock score is bolstered by strong financial performance and positive technical indicators. The company’s robust profitability and stable balance sheet support its long-term outlook. However, valuation metrics suggest limited upside potential, and the stock's technical indicators warn of a potential near-term pullback due to overbought conditions.

Chunghwa Telecom Co (CHT) vs. SPDR S&P 500 ETF (SPY)

Chunghwa Telecom Co Business Overview & Revenue Model

Company DescriptionChunghwa Telecom Co., Ltd. (CHT) is Taiwan's largest telecommunications company, providing a comprehensive suite of services including fixed-line, mobile, broadband, and internet services. Established in 1996 and headquartered in Taipei, CHT is a key player in the telecommunications industry, offering innovative solutions and maintaining a strong market presence in Taiwan. The company is also involved in other sectors such as data services, information and communication technology (ICT), and digital television services.
How the Company Makes MoneyChunghwa Telecom Co. makes money primarily through its diverse range of telecommunications services. The company's revenue streams include mobile services, which encompass voice, data, and value-added services; fixed-line services, including local, domestic long-distance, and international services; and broadband and internet services, which provide high-speed internet access to residential and business customers. CHT also generates income from its ICT solutions, offering enterprise clients customized solutions for digital transformation, cloud computing, and data center services. Additionally, Chunghwa Telecom benefits from strategic partnerships and collaborations that enhance its service offerings, as well as investments in emerging technologies that contribute to its growth and competitiveness in the market.

Chunghwa Telecom Co Financial Statement Overview

Summary
Chunghwa Telecom exhibits solid financial health with strong profitability, a stable balance sheet, and efficient cash flow management. Despite a slight decline in net income, the company's operational efficiency and conservative leverage support its financial robustness.
Income Statement
85
Very Positive
Chunghwa Telecom demonstrates strong profitability with stable gross profit and EBIT margins. The TTM gross profit margin is approximately 36.3% and EBIT margin is 20.6%. Revenue growth has been steady, although recent net income has decreased slightly. The company maintains a robust EBITDA margin, reflecting efficient operational management.
Balance Sheet
80
Positive
The balance sheet is strong with a low debt-to-equity ratio around 0.11, indicating conservative leverage. The equity ratio is substantial at approximately 73.6%, portraying a stable financial structure. Return on equity shows solid profitability with a TTM ROE of 8.0%. However, consistent stockholder equity growth could be improved for enhanced shareholder value.
Cash Flow
77
Positive
Chunghwa Telecom has a healthy cash flow position, with a strong operating cash flow to net income ratio of 2.48, indicating good cash generation from operations. The free cash flow to net income ratio is 1.53, showcasing efficient capital expenditures. Free cash flow growth has been modest, suggesting room for improvement in cash flow management.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
229.89B229.97B223.20B136.72B209.44B207.61B
Gross Profit
83.56B83.39B81.43B375.00K74.33B70.58B
EBIT
47.47B46.87B46.35B46.82B44.93B42.36B
EBITDA
86.90B81.92B87.58B87.31B85.08B79.93B
Net Income Common Stockholders
31.61B37.22B36.96B36.36B35.62B33.42B
Balance SheetCash, Cash Equivalents and Short-Term Investments
58.70B58.94B53.28B53.81B44.84B36.55B
Total Assets
524.54B534.30B523.74B523.20B513.07B506.38B
Total Debt
42.98B43.23B43.64B43.47B38.91B38.24B
Net Debt
4.27B6.97B9.82B-6.72B-864.70M7.82B
Total Liabilities
121.04B136.39B131.02B129.43B121.81B117.12B
Stockholders Equity
391.33B382.83B380.29B381.18B379.33B377.93B
Cash FlowFree Cash Flow
48.43B50.25B43.58B42.52B39.27B3.34B
Operating Cash Flow
78.30B79.24B74.56B75.95B74.86B74.46B
Investing Cash Flow
-41.72B-35.33B-50.17B-30.79B-31.17B-68.25B
Financing Cash Flow
-40.92B-41.52B-40.73B-34.80B-34.31B-9.80B

Chunghwa Telecom Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price43.95
Price Trends
50DMA
40.42
Positive
100DMA
39.40
Positive
200DMA
38.87
Positive
Market Momentum
MACD
1.07
Negative
RSI
66.13
Neutral
STOCH
92.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHT, the sentiment is Positive. The current price of 43.95 is above the 20-day moving average (MA) of 42.20, above the 50-day MA of 40.42, and above the 200-day MA of 38.87, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 66.13 is Neutral, neither overbought nor oversold. The STOCH value of 92.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHT.

Chunghwa Telecom Co Risk Analysis

Chunghwa Telecom Co disclosed 32 risk factors in its most recent earnings report. Chunghwa Telecom Co reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Effects of climate change may result in potential adverse impacts on our business, financial conditions and results of operations. Q4, 2023

Chunghwa Telecom Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
VIVIV
81
Outperform
$15.86B15.697.95%3.88%-5.69%-0.05%
TLTLK
76
Outperform
$17.03B11.5816.28%5.02%-5.14%-7.47%
CHCHT
73
Outperform
$34.05B29.329.59%2.59%-0.19%-0.79%
VOVOD
71
Outperform
$24.12B9.21-7.17%6.70%-24.84%-74.77%
AMAMX
71
Outperform
$53.10B31.758.54%2.88%0.19%-49.68%
TETEF
64
Neutral
$28.68B-0.55%4.68%1.18%
60
Neutral
$14.06B6.51-3.76%3.69%2.48%-35.40%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CHT
Chunghwa Telecom Co
43.95
5.95
15.66%
AMX
America Movil
17.59
-1.53
-8.00%
TLK
PT Telekomunikasi Indonesia Tbk
16.71
-1.62
-8.84%
VIV
Telefonica Brasil
9.73
1.26
14.88%
TEF
Telefonica
5.13
0.88
20.71%
VOD
Vodafone
10.42
1.60
18.14%

Chunghwa Telecom Co Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 2.16%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
Chunghwa Telecom's first quarter of 2025 showed strong growth in net income, EPS, and ICT business, while maintaining leadership in the mobile market. However, challenges such as a decline in free cash flow and operating cash flows were noted. Overall, the highlights significantly outweigh the lowlights, indicating robust performance and strategic growth.
Q1-2025 Updates
Positive Updates
Increase in Net Income and EPS
Net income and EPS delivered a 4.3% year-over-year increase in the first quarter, driven by solid operations across mobile, fixed-line, and ICT businesses.
Expansion of ICT Business
Enterprise ICT business revenue increased by 13% year-over-year, driven by strong project revenue recognition and growth in recurring revenue.
Awards and Recognition
Chunghwa Telecom received multiple awards for business and ESG performance, including Technology Innovation of the Year by Asian Telecom Awards and a Top 5 ranking for S&P Global ESG score.
Mobile Market Leadership
Chunghwa Telecom secured the largest revenue share in Taiwan's mobile market at 40.5% and subscriber share at 39.1%, with a 5G market share of 38.7%.
Fixed Broadband Growth
Fixed broadband revenue and ARPU increased by 2.5% and 2.1% year-over-year, respectively, driven by subscriber speed upgrades.
International Expansion
Revenue from overseas subsidiaries increased by 8.2% year-over-year, with strong ICT services growth in the United States and Southeast Asia.
Financial Performance
Revenue reached over NT$55 billion, marking the fifth consecutive year of growth. EBITDA and net income reached their highest levels in nine years for a first-quarter period.
Negative Updates
Free Cash Flow Decline
Free cash flow declined by 17.4% year-over-year due to higher settlements of accounts payable and increased capital expenditures.
Decrease in Cash Flows from Operating Activities
Cash flows from operating activities decreased by 8.6% year-over-year, primarily due to higher settlements of accounts payable.
Decline in Fixed Voice Revenue
Continued declines in EBG’s fixed voice revenue led to a 3.8% year-over-year decrease in income before tax for the EBG.
Company Guidance
During the first quarter of 2025, Chunghwa Telecom reported a 4.3% year-over-year increase in net income and EPS, driven by strong performance across its mobile, fixed-line, and ICT segments. The company achieved a 40.5% revenue share and a 39.1% subscriber share in Taiwan's mobile market, with a 2% increase in mobile service revenue. The 5G market share stood at 38.7%, while fixed broadband revenue rose by 2.5% year-over-year. The company's value-added services saw significant growth, with a 33% increase in multiple-play packages and a 45% rise in Hami Video subscribers. The enterprise ICT business reported a 13% revenue increase, fueled by cybersecurity, IDC, and cloud services growth of 40%, 29%, and 13% respectively. Overall revenue grew 1.6% year-over-year to over NT$55 billion, with net income and EPS exceeding Q1 guidance.

Chunghwa Telecom Co Corporate Events

M&A TransactionsBusiness Operations and Strategy
AT&T Announces Acquisition of Lumen’s Fiber Business
Positive
May 21, 2025

On May 21, 2025, AT&T announced a definitive agreement to acquire Lumen Technologies’ Mass Markets fiber business for $5.75 billion. This acquisition, expected to close in the first half of 2026, will allow AT&T to expand its fiber network to approximately 60 million locations by 2030, significantly enhancing its market presence in 11 U.S. states. The deal is anticipated to stimulate investment in U.S. connectivity infrastructure, create jobs, and improve high-speed internet access for millions. AT&T plans to engage an equity partner post-acquisition to co-invest in the business, further supporting its growth strategy.

The most recent analyst rating on (T) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on AT&T stock, see the T Stock Forecast page.

Shareholder Meetings
AT&T Stockholders Show Strong Leadership Support
Positive
May 19, 2025

On May 15, 2025, AT&T Inc. held its Annual Meeting of Stockholders virtually, with 76.08% of common shares represented. During the meeting, the election of directors was conducted, with all nominees receiving a majority of votes cast, reflecting strong shareholder support for the company’s leadership.

The most recent analyst rating on (T) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on AT&T stock, see the T Stock Forecast page.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.