We maintain our Buy recommendation with a higher valuation target for China Mobile (CHL), the largest mobile service provider of the world according to subscriber count, following its first quarter 2008 financial results, in line with our expectations. Successful expansion initiatives in rural regions of China, along with effective network optimization strategies and the introduction of customized mobile value-added services for different market segments, were enabling factors during the reporting period. China Mobile currently commands 69% share of the total Chinese wireless market. Given the low level of mobile penetration in this region, significant opportunities remain for the company. However, the proposed restructuring of the Chinese wireless market by regulatory authorities, lingering delays of commercial TD-SCDMA (3G) networks, and recent recessionary expectations throughout the world may inject transient business fluctuations for carriers in this part of the world.
by Zacks
significant opportunities remain for the company.
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$86.91 (04/23/08)
