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

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.

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