China Mobile plays a huge part in the explosive mobile growth in China - analysts

By IVCPOST Staff Reporter

Aug 02, 2013 08:02 AM EDT

The photo shows the logo of China Mobile.

China is currently the world's biggest smartphone market. International Data Corporation expected that the shipments of smartphones in the country would spike to approximately 460 million. IDC, a research firm, said that the figure could be attained by 2017. Furthermore, Morgan Stanley put a US$30 billion price tag on China's mobile internet market by 2015.

China Mobile is currently the biggest mobile carrier in China and in the whole world. The corporation, with a market cap of up to US$200 billion, was twice the size of China Telecom and China Unicom combined. The two mobile carriers were China Mobile's major domestic rivals. China Mobile owned as much as US$64 billion in cash with roughly US$4.5 billion in debt. The company's debt-to-equity ratio of 0.0396 with a strong current ratio of 1.5 would indicate a healthy balance sheet. China mobile's dividend was under 4%. A low payout ratio of 39% would ensure that the payout could be sustained and the dividend could be safe.

Analysts said that an investment in China Mobile would allow venture capitalists to be best-positioned in capitalizing from the growth in China. Due to the company's enormous size and dominance, investors could be assured to continuously generate earnings.

© 2024 VCPOST.com All rights reserved. Do not reproduce without permission.