Chunghwa Telecom Co (CHT) AI Stock Analysis

• Market Cap: $32.83B
• Dividend Yield: 4.06%
• 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 ▲(16.87% 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.

Positive Factors

Revenue Growth

Record revenue growth indicates strong demand and effective market strategies, reinforcing Chunghwa Telecom's competitive position.

ICT Services Expansion

Growth in ICT services shows successful diversification and adaptation to digital trends, enhancing long-term revenue stability.

5G Market Penetration

Increasing 5G penetration strengthens Chunghwa Telecom's market leadership and positions it well for future technological advancements.

Negative Factors

Decline in Fixed Voice Revenue

Declining fixed voice revenue reflects a shift in consumer preferences, potentially reducing a traditional revenue stream.

Lower Free Cash Flow

Decreased free cash flow may limit financial flexibility and investment capacity, impacting future growth initiatives.

International Business Challenges

Declining international business revenue suggests challenges in global market expansion, which could hinder growth prospects.

Chunghwa Telecom Co Business Overview & Revenue Model

Company Description

Chunghwa Telecom Co (CHT) is Taiwan's largest telecommunications company, providing a wide range of services including fixed-line and mobile telecommunications, broadband internet, and digital television. Established in 1996, CHT operates primarily in the telecommunications sector, catering to both residential and business customers. The company's core offerings encompass voice services, data communication, and innovative ICT solutions, positioning it as a leader in Taiwan's digital landscape.

How the Company Makes Money

Chunghwa Telecom generates revenue through multiple streams, primarily from its telecommunications services. The company earns substantial income from mobile services, including voice, messaging, and data plans for individual and corporate customers. Fixed-line services also contribute significantly to revenue, with offerings in local and international calling, broadband internet, and leased line services for businesses. Furthermore, CHT has expanded into value-added services such as cloud computing, Internet of Things (IoT) solutions, and digital content services, enhancing its revenue potential. Partnerships with technology firms and collaborations with other telecom operators enhance CHT's service offerings and market reach. Additionally, CHT benefits from regulatory support and increasing demand for high-speed internet and mobile connectivity, further solidifying its financial performance.

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	18.02B
Cash, Cash Equivalents and Short-Term Investments	37.81B	58.94B	53.28B	53.00B	44.08B	1.25B
Total Debt	38.61B	43.23B	43.64B	43.47B	38.91B	1.36B
Total Liabilities	122.76B	138.49B	131.02B	131.47B	123.75B	4.17B
Stockholders Equity	376.61B	382.83B	380.29B	379.12B	377.38B	13.45B
Cash Flow
Free Cash Flow	33.20B	50.25B	43.58B	42.52B	39.27B	3.34B
Operating Cash Flow	58.77B	79.24B	74.56B	75.95B	74.86B	74.46B
Investing Cash Flow	-52.28B	-35.33B	-50.17B	-30.79B	-31.17B	-68.25B
Financing Cash Flow	-2.57B	-41.52B	-40.73B	-34.80B	-34.31B	-9.80B

Chunghwa Telecom Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 41.07 is below the 20-day moving average (MA) of 42.00, below the 50-day MA of 42.79, and below the 200-day MA of 42.13, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 37.09 is Neutral, neither overbought nor oversold. The STOCH value of 19.69 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
VIV	77 Outperform	$21.17B	19.94	8.36%	5.03%	-3.16%	4.70%
CHT	76 Outperform	$32.83B	26.75	10.10%	4.06%	5.74%	7.12%
TLK	75 Outperform	$21.73B	16.27	15.54%	5.86%	-5.21%	-7.45%
AMX	74 Outperform	$67.97B	17.98	17.70%	2.49%	1.14%	83.48%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
VOD	58 Neutral	$28.99B	―	-7.08%	4.06%	19.67%	-278.51%
TEF	45 Neutral	$24.04B	―	-0.70%	8.04%	-5.49%	-75.51%

Chunghwa Telecom Co Corporate Events

Chunghwa Telecom Subsidiary Acquires Assets and Expands Infrastructure

On November 18, 2025, Chunghwa Telecom’s subsidiary, Honghwa International Corporation, announced the acquisition of right-of-use assets from its parent company, Chunghwa Telecom, for office premises in Taichung City and Taipei City. Additionally, Chunghwa Telecom announced the purchase of mobile broadband service equipment from Ericsson Taiwan Ltd., indicating a strategic move to enhance its telecommunications infrastructure and service offerings.

Chunghwa Telecom Acquires Nokia Equipment and Engages Investors

On November 11, 2025, Chunghwa Telecom Co. announced the acquisition of mobile broadband service equipment from Nokia, valued at NT$2.969 billion, to enhance its mobile broadband construction project. Additionally, the company will participate in an investor conference hosted by JPMorgan on November 18, 2025, in Hong Kong, indicating its proactive engagement with investors and stakeholders.

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.