Chunghwa Telecom Co (CHT) AI Stock Analysis

• Market Cap: $32.83B
• Dividend Yield: 3.93%
• Average Volume (3M): 124.35K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 0.23
• Revenue Growth: 5.74%
• EPS Growth: 7.12%
• Country: US
• Employees: 19,912
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.39
• Shares Outstanding: 775,744,700
• 10 Day Avg. Volume: 129,806
• 30 Day Avg. Volume: 124,346
• PEG Ratio: 40.93
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 4.20
• P/FCF Ratio: 19.09
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 0.42
• Enterprise Value/Ebitda: 0.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $48.00 ▲(13.10% Upside)

Chunghwa Telecom Co's overall stock score is driven by its strong financial performance and positive earnings call highlights, including record revenue and strategic growth in ICT services. While the technical analysis suggests caution due to bearish momentum, the company's robust dividend yield and strategic initiatives in AI and cybersecurity provide a solid foundation for future growth.

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 Co exhibits strong financial health with consistent revenue growth, robust profitability, and a solid balance sheet. The company effectively manages its leverage and maintains healthy cash flow metrics, positioning it well within the telecommunications industry. While there are minor fluctuations in cash flow, the overall financial trajectory remains positive.

Income Statement

Chunghwa Telecom Co has shown consistent revenue growth over the years, with a TTM revenue growth rate of 1.11%. The company maintains strong profitability metrics, with a gross profit margin of 36.18% and a net profit margin of 16.36% in the TTM period. EBIT and EBITDA margins are also robust at 21.43% and 38.62% respectively, indicating efficient operations and cost management.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.12, suggesting prudent leverage management. Return on equity is healthy at 9.99%, indicating effective use of shareholder funds. The equity ratio stands at 73.41%, showing a strong equity base relative to total assets.

Cash Flow

Chunghwa Telecom Co demonstrates strong cash flow generation, with a free cash flow growth rate of 3.09% in the TTM period. The operating cash flow to net income ratio is 0.71, and the free cash flow to net income ratio is 0.60, indicating efficient conversion of income into cash. However, there is a slight decline in operating cash flow compared to previous periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	234.49B	228.57B	221.50B	215.71B	209.44B	207.39B
Gross Profit	85.28B	81.99B	79.73B	78.99B	74.33B	70.58B
EBITDA	89.25B	87.80B	86.98B	86.90B	84.69B	79.40B
Net Income	38.38B	37.19B	36.96B	36.36B	35.62B	33.42B
Balance Sheet
Total Assets	513.11B	534.30B	523.74B	523.00B	512.88B	506.18B
Cash, Cash Equivalents and Short-Term Investments	23.54B	58.94B	53.28B	53.00B	44.08B	36.55B
Total Debt	27.54B	43.23B	43.64B	43.47B	38.91B	38.24B
Total Liabilities	122.68B	138.49B	131.02B	131.47B	123.75B	118.91B
Stockholders Equity	376.61B	382.83B	380.29B	379.12B	377.38B	376.12B
Cash Flow
Free Cash Flow	49.41B	50.25B	43.58B	42.52B	39.27B	3.34B
Operating Cash Flow	74.98B	79.24B	74.56B	75.95B	74.86B	74.46B
Investing Cash Flow	-34.87B	-35.33B	-50.17B	-30.79B	-31.17B	-68.25B
Financing Cash Flow	-47.72B	-41.52B	-40.73B	-34.80B	-34.31B	-9.80B

Chunghwa Telecom Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 42.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHT, the sentiment is Neutral. The current price of 42.44 is below the 20-day moving average (MA) of 42.89, below the 50-day MA of 43.49, and above the 200-day MA of 41.83, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 42.05 is Neutral, neither overbought nor oversold. The STOCH value of 75.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CHT.

Chunghwa Telecom Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLK	78 Outperform	$20.39B	15.34	15.54%	6.08%	-5.21%	-7.45%
VIV	77 Outperform	$20.36B	19.09	8.36%	4.63%	-3.16%	4.70%
CHT	76 Outperform	$32.83B	26.75	10.10%	3.93%	5.74%	7.12%
AMX	74 Outperform	$71.27B	18.79	17.70%	2.38%	1.14%	83.48%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
VOD	58 Neutral	$27.87B	―	-7.17%	3.91%	0.89%	-494.16%
TEF	45 Neutral	$23.48B	―	-0.70%	7.81%	-5.49%	-75.51%

Chunghwa Telecom Co Corporate Events

Chunghwa Telecom Reports Positive Financial Results for October 2025

On November 10, 2025, Chunghwa Telecom Co., Ltd. announced its unaudited operating results for October 2025, reporting a revenue of approximately NT$20.93 billion and a net income attributable to stockholders of NT$3.15 billion. The company also noted a 4.05% increase in net sales for October 2025 compared to the same month in 2024, reflecting a positive trend in its financial performance. This announcement highlights Chunghwa Telecom’s stable financial position and its continued growth in the telecommunications sector, which could have favorable implications for its stakeholders.

Chunghwa Telecom Reports Financial Statement Differences as of September 2025

On November 10, 2025, Chunghwa Telecom Co., Ltd. reported differences in its consolidated financial statements for the nine months ending September 30, 2025, under Taiwan-IFRSs and IFRSs. The discrepancies mainly arose from the timing of income tax recognition on unappropriated earnings and the treatment of revenue from connection fees and prepaid phone cards. Despite these differences, the company’s earnings distribution and stockholders’ equity matters remain aligned with Taiwan-IFRSs, reflecting its adherence to local accounting standards.

Chunghwa Telecom Reports Strong Financial Results for Nine Months Ending September 2025

On November 7, 2025, Chunghwa Telecom Co., Ltd. announced its consolidated financial statements for the nine months ending September 30, 2025, which were approved by the Board of Directors. The company reported an operating revenue of 170,463,142 thousand NTD, with a net profit of 30,655,286 thousand NTD, showcasing a robust financial performance. The announcement underscores Chunghwa Telecom’s strong financial health and solidifies its position in the telecommunications industry, reflecting positively on its operational efficiency and stakeholder value.

Chunghwa Telecom Reports Strong Q3 2025 Results with Revenue Growth

On November 6, 2025, Chunghwa Telecom reported its un-audited consolidated operating results for the third quarter of 2025, showcasing a 4.2% increase in total revenue to NT$ 57.92 billion. The company achieved significant growth in its Consumer and Enterprise Business Groups, with the latter seeing a 14.5% rise in ICT revenue. Despite a decrease in the International Business Group’s revenue, Chunghwa’s overall performance exceeded expectations, driven by robust 5G adoption and successful high-speed migration initiatives. The company also highlighted its strategic moves in AI innovation and sustainability, including the establishment of the InventAI subsidiary and the issuance of a NT$3.5 billion sustainability bond, underscoring its commitment to ESG goals and future-ready infrastructure.

Chunghwa Telecom Subsidiary Acquires Right-of-Use Asset

On October 28, 2025, CHT InventAI Co., Ltd., a subsidiary of Chunghwa Telecom Co., Ltd., announced the acquisition of a right-of-use asset from its parent company. This transaction, involving office premises located in Taipei City, is part of the company’s strategic business planning. The lease agreement, set to begin on November 1, 2025, and run through December 31, 2027, reflects Chunghwa Telecom’s efforts to optimize its operational infrastructure. The decision was made by the Board of Directors, emphasizing the company’s commitment to aligning its resources with its business objectives.

Chunghwa Telecom Reports Strong September 2025 Financial Results

On October 13, 2025, Chunghwa Telecom announced its unaudited operating results for September 2025, reporting a revenue of approximately NT$20.19 billion and a net income of NT$3.08 billion. The company’s earnings per share for the month were NT$0.40, with an EBITDA of NT$7.23 billion. For the nine months ending September 30, 2025, the company achieved a revenue of NT$170.46 billion, marking a 3.52% increase compared to the same period in 2024. This financial performance underscores Chunghwa Telecom’s stable growth and robust market position, reflecting positively on shareholder value and market confidence.

Chunghwa Telecom’s Subsidiary Acquires Assets, Prepares for Q3 Results Call

On October 1, 2025, Chunghwa Telecom Co., Ltd. announced that its subsidiary, Honghwa International Corporation, acquired right-of-use assets from the parent company. This transaction involves properties located in New Taipei City, Taiwan, with a total transaction amount of NT$9,957,336. The acquisition is part of a strategic move to optimize business operations and cost efficiency. Additionally, Chunghwa Telecom will hold a conference call on November 6, 2025, to discuss its third-quarter financial results, which could provide further insights into the company’s financial health and strategic direction.

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.