Chunghwa Telecom Co Ltd (CHT)
NYSE:CHT
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Chunghwa Telecom Co
(NYSE:CHT)
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Rating:77Outperform
Price Target:
$48.00
â–²(14.29% Upside)
Action:ReiteratedDate:02/21/26
The score is driven primarily by strong financial performance (durable margins, low leverage, dependable cash generation). Earnings-call guidance is constructive but tempered by cost growth outpacing revenue and higher non-mobile CapEx. Technical signals are largely neutral, while valuation is a modest headwind given the relatively high P/E despite a solid dividend yield.
Positive Factors
Market leadership in mobile and 5G
Sustained market share and rising 5G penetration provide durable pricing power and stable core revenue. High 5G adoption lifts ARPU and supports upsell to higher‑value plans and bundled services, anchoring long‑term cash flows and competitive positioning in Taiwan's core market.
Negative Factors
Rising operating costs vs revenue growth
If operating costs persistently outpace revenue growth, margins face structural compression. Elevated hiring for AI/IDC, higher electricity and depreciation from new builds can reduce operating leverage and free cash flow over 2–6 months, pressuring profitability despite top‑line gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Market leadership in mobile and 5G
Sustained market share and rising 5G penetration provide durable pricing power and stable core revenue. High 5G adoption lifts ARPU and supports upsell to higher‑value plans and bundled services, anchoring long‑term cash flows and competitive positioning in Taiwan's core market.
Read all positive factors
Chunghwa Telecom Co (CHT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.44B
Dividend Yield3.15%
Average Volume (3M)124.35K
Price to Earnings (P/E)26.2
Beta (1Y)0.20
Revenue Growth5.74%
EPS Growth7.12%
CountryUS
Employees19,912
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.38
Shares Outstanding775,744,700
10 Day Avg. Volume129,806
30 Day Avg. Volume124,346
Financial Highlights & Ratios
PEG Ratio6.27
Price to Book (P/B)2.62
Price to Sales (P/S)4.29
P/FCF Ratio20.43
Enterprise Value/Market Cap32.08
Enterprise Value/Revenue4.43
Enterprise Value/Gross Profit12.11
Enterprise Value/Ebitda11.63
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.66
Revenue Forecast (FY)$7.76B
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, Internati...
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 custome...
Chunghwa Telecom Co Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call highlighted strong full-year financial performance, record revenue and EPS milestones, clear market leadership in mobile/5G, robust ICT recurring revenue and strategic investments (IDC, satellites, submarine cables) with solid cash and leverage metrics. Lowlights centered on quarterly declines in certain ICT subsegments (cloud, AIDC, cybersecurity) driven by timing and high comparables, one‑off impairments (3G sunset) that depressed Q4 operating profit, international revenue softness, and an outlook showing operating costs rising slightly faster than guided revenue and a significant increase in non‑mobile CapEx for 2026. Overall the positives — sustained revenue and profit growth, market share gains, high-margin EBITDA stability, and strategic wins — materially outweigh the transitory and timing-related negatives.Positive Updates
All-time High Full Year Revenue
Full year 2025 revenue reached TWD 236.11 billion, up 2.7% year-over-year, marking an all-time high driven by core telecom and ICT contributions.
Negative Updates
Quarterly ICT Revenue Weakness and Segment Declines
Group ICT revenue declined 6% YoY in Q4 due to a high comparison base. Specific quarterly declines included cloud (-16% YoY), AIDC (-27% YoY) and cybersecurity (-16% YoY) driven by timing of project recognitions.
Read all updates
Q4-2025 Updates
Positive
Negative
All-time High Full Year Revenue
Full year 2025 revenue reached TWD 236.11 billion, up 2.7% year-over-year, marking an all-time high driven by core telecom and ICT contributions.
Read all positive updates
Company Guidance
Management guided 2026 total revenue to increase 2.5–3.2% year‑over‑year, operating costs and expenses to rise 3.5–3.7% y/y, and EPS to be in the range of TWD 4.82–5.02. They budgeted CapEx of TWD 31.91 billion, with mobile‑related CapEx falling ~6.3% (the fifth consecutive annual decline since 2021) while non‑mobile CapEx is expected to climb ~24% to fund submarine cables, IDC, satellite and AIDC investments; they also expect combined AIoT, satellite and big data revenue to surpass TWD 10 billion in 2026. Management cited a stable Taiwan mobile market and continued 5G and fixed‑broadband ARPU momentum as the drivers supporting this guidance despite higher talent, electricity and depreciation-driven operating costs.Chunghwa Telecom Co Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 236.11B | 228.57B | 221.50B | 215.71B | 209.44B |
| Gross Profit | 86.97B | 81.99B | 79.73B | 78.99B | 74.33B |
| EBITDA | 84.05B | 87.80B | 86.98B | 86.90B | 84.69B |
| Net Income | 38.70B | 37.19B | 36.96B | 36.36B | 35.62B |
Balance Sheet | |||||
| Total Assets | 536.35B | 534.30B | 523.74B | 523.00B | 512.88B |
| Cash, Cash Equivalents and Short-Term Investments | 57.34B | 57.94B | 52.40B | 53.00B | 43.28B |
| Total Debt | 38.02B | 43.23B | 43.64B | 43.47B | 38.91B |
| Total Liabilities | 135.42B | 138.49B | 131.02B | 131.47B | 123.75B |
| Stockholders Equity | 386.39B | 382.83B | 380.29B | 379.12B | 377.38B |
Cash Flow | |||||
| Free Cash Flow | 49.60B | 50.25B | 43.58B | 42.52B | 39.27B |
| Operating Cash Flow | 77.50B | 79.24B | 74.56B | 75.95B | 74.86B |
| Investing Cash Flow | -28.20B | -35.33B | -50.17B | -30.79B | -31.17B |
| Financing Cash Flow | -48.46B | -41.52B | -40.73B | -34.80B | -34.31B |
Chunghwa Telecom Co Technical Analysis
Negative
42.00
Price Trends
42.61
Negative
42.22
Positive
43.19
Negative
Market Momentum
-0.03
Positive
43.33
Neutral
44.61
Neutral
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 42 is below the 20-day moving average (MA) of 43.05, below the 50-day MA of 42.61, and below the 200-day MA of 43.19, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.33 is Neutral, neither overbought nor oversold. The STOCH value of 44.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $32.44B | 26.19 | 10.15% | 3.15% | 5.74% | 7.12% | |
77 Outperform | $17.83B | 16.17 | 15.56% | 6.14% | -5.21% | -7.45% | |
70 Outperform | $24.87B | 17.32 | 9.03% | 5.03% | -3.16% | 4.70% | |
62 Neutral | $72.34B | 14.48 | 17.05% | 2.69% | 1.14% | 83.48% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $33.34B | 7.35 | -8.37% | 3.77% | 19.67% | -278.51% |
* Communication Services Sector Average
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42.23
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Chunghwa Telecom Co Corporate Events
Chunghwa Telecom Posts Double-Digit January Sales Growth and Details Derivative Positions
Feb 10, 2026
On February 10, 2026, Chunghwa Telecom reported unaudited consolidated operating results for January 2026, posting revenue of about NT$20.41 billion, operating income of roughly NT$4.41 billion, net income attributable to shareholders of NT$3.37 b...
Private Placements and FinancingRegulatory Filings and Compliance
AT&T completes $6.5 billion multi-tranche debt offering
Positive
Feb 5, 2026
On February 5, 2026, ATT closed a multi-tranche debt offering totaling $6.5 billion in registered global notes, with maturities ranging from 2031 to 2056 and coupon rates between 4.400% and 6.000%, issued under its existing 2013 indenture. The tra...
Chunghwa Telecom Posts Record 2025 Earnings, Beats Guidance on Core Telecom and ICT Growth
Feb 3, 2026
On February 3, 2026, Chunghwa Telecom reported its unaudited consolidated results for the fourth quarter and full year 2025, highlighting record full‑year revenue of NT$236.11 billion, up 2.7% year on year, and net income attributable to sha...
Business Operations and StrategyStock BuybackFinancial Disclosures
AT&T Reports Q4 Earnings, Authorizes New $10B Buyback
Positive
Jan 28, 2026
ATT reported on January 28, 2026, that its fourth-quarter 2025 net income attributable to common stock fell to $3.8 billion, or $0.53 per diluted share, from $4.0 billion, or $0.56, a year earlier, even as quarterly operating revenues rose 3.6% to...
Chunghwa Telecom Unveils AI-Centric 2026 Guidance with Higher Revenue and Capex Targets
Jan 23, 2026
On January 23, 2026, Chunghwa Telecom issued its 2026 financial and strategic guidance, framing a new corporate vision of “Igniting the Future with AI” and organizing its strategy around digital resilience, smart empowerment, and susta...
Chunghwa Telecom Reports Solid 2025 Results as Prosecutors Raid Local Offices
Jan 13, 2026
On January 5, 2026, the Taiwan Yilan District Prosecutors Office, working through the Yilan Investigation Branch of the Investigation Bureau under the Ministry of Justice, raided the staff offices of Chunghwa Telecom’s local business operati...
Chunghwa Telecom Subsidiary Signs Related-Party Office Lease, Schedules Q4 2025 Results Call
Dec 29, 2025
On December 24, 2025, Chunghwa Telecom’s subsidiary CHT InventAI Co., Ltd. approved and executed a related-party lease with its parent company for several office premises in Taipei City, Taoyuan City, and Hsinchu County, covering 355.51̵...
Chunghwa Telecom Announces Retirement of Senior Executive Vice President and Training Institute Leadership Change
Dec 22, 2025
Chunghwa Telecom Co., Ltd. reported a senior management change following the December 18, 2025 retirement of Administration Senior Executive Vice President Wei-Kuo Hong, who also concurrently served as President of the Telecommunication Training I...
Chunghwa Telecom Subsidiary Acquires Right-of-Use Asset
Dec 15, 2025
On December 11, 2025, Honghwa International Corporation, a subsidiary of Chunghwa Telecom Co., announced the acquisition of a right-of-use asset from its parent company. This transaction involved 290 leased stores, with a total transaction amount ...
Chunghwa Telecom Reports Strong November 2025 Financial Results
Dec 10, 2025
On December 10, 2025, Chunghwa Telecom announced its unaudited operating results for November 2025, reporting a revenue of approximately NT$21.45 billion and a net income of NT$3.46 billion. The company’s earnings per share for November were...
Chunghwa Telecom Faces Office Raid and Commits to Renewable Energy
Dec 8, 2025
On December 3, 2025, Chunghwa Telecom’s local business operation centers were raided by the Taiwan Taoyuan District Prosecutors Office as part of an investigation, with the company fully cooperating and reporting no financial or business imp...
Chunghwa Telecom Enhances Infrastructure with Ericsson Equipment Purchase
Dec 1, 2025
On November 27, 2025, Chunghwa Telecom participated in an investor conference hosted by IBF Securities, showcasing its strategic initiatives and financial outlook. Additionally, on November 28, 2025, the company announced a significant purchase of...
Chunghwa Telecom Subsidiary Acquires Assets and Expands Infrastructure
Nov 24, 2025
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. Additio...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.