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China Telecom

DB:ZCH
Snowflake Description

6 star dividend payer and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ZCH
DB
HK$188B
Market Cap
  1. Home
  2. DE
  3. Telecom
Company description

China Telecom Corporation Limited, together with its subsidiaries, provides wireline and mobile telecommunications services primarily in the People’s Republic of China. The last earnings update was 3 days ago. More info.


Add to Portfolio Compare Print
  • China Telecom has significant price volatility in the past 3 months.
ZCH Share Price and Events
7 Day Returns
1.5%
DB:ZCH
3.7%
DE Telecom
14.8%
DE Market
1 Year Returns
-45.3%
DB:ZCH
-22.7%
DE Telecom
-14.1%
DE Market
ZCH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Telecom (ZCH) 1.5% -24.1% -29% -45.3% -39.9% -56.1%
DE Telecom 3.7% -22.8% -18.2% -22.7% -31.2% -35.3%
DE Market 14.8% -20% -23.5% -14.1% -22.8% -26.7%
1 Year Return vs Industry and Market
  • ZCH underperformed the Telecom industry which returned -22.7% over the past year.
  • ZCH underperformed the Market in Germany which returned -14.1% over the past year.
Price Volatility
ZCH
Industry
5yr Volatility vs Market

ZCH Value

 Is China Telecom undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of China Telecom to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for China Telecom.

DB:ZCH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 4.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:ZCH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.36
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.359 (1 + (1- 25%) (70.5%))
0.698
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.8 * 6.07%)
4.47%

Discounted Cash Flow Calculation for DB:ZCH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for China Telecom is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:ZCH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 4.47%)
2020 27,471.11 Analyst x9 26,296.70
2021 18,538.09 Analyst x11 16,986.94
2022 25,033.79 Analyst x8 21,958.46
2023 32,614.00 Analyst x1 27,384.46
2024 54,538.00 Analyst x1 43,835.34
2025 67,976.52 Est @ 24.64% 52,300.90
2026 79,621.90 Est @ 17.13% 58,641.86
2027 89,077.01 Est @ 11.88% 62,800.91
2028 96,377.33 Est @ 8.2% 65,042.95
2029 101,793.61 Est @ 5.62% 65,761.37
Present value of next 10 years cash flows CN¥441,009.00
DB:ZCH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥101,793.61 × (1 + -0.39%) ÷ (4.47% – -0.39%)
CN¥2,088,068.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥2,088,068.62 ÷ (1 + 4.47%)10
CN¥1,348,947.69
DB:ZCH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥441,009.00 + CN¥1,348,947.69
CN¥1,789,956.69
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥1,789,956.69 / 80,932.37
CN¥22.12
DB:ZCH Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:728)
1.092
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥22.12 x 1.092
HK$24.16
Non-primary Listing Adjustment Factor 1 share in DB:ZCH represents 0.11379x of SEHK:728
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.11379x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 24.16 x 0.11379
€2.75
Value per share (EUR) From above. €2.75
Current discount Discount to share price of €0.26
= -1 x (€0.26 - €2.75) / €2.75
90.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price China Telecom is available for.
Intrinsic value
>50%
Share price is €0.26 vs Future cash flow value of €2.75
Current Discount Checks
For China Telecom to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • China Telecom's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • China Telecom's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China Telecom's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Telecom's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:ZCH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CNY CN¥0.25
SEHK:728 Share Price ** SEHK (2020-03-27) in HKD HK$2.32
SEHK:728 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.915 CN¥2.12
Europe Telecom Industry PE Ratio Median Figure of 61 Publicly-Listed Telecom Companies 17.13x
Germany Market PE Ratio Median Figure of 398 Publicly-Listed Companies 16.62x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China Telecom.

DB:ZCH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:728 Share Price ÷ EPS (both in CNY)

= 2.12 ÷ 0.25

8.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Telecom is good value based on earnings compared to the Europe Telecom industry average.
  • China Telecom is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does China Telecom's expected growth come at a high price?
Raw Data
DB:ZCH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.38x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
6.1%per year
Europe Telecom Industry PEG Ratio Median Figure of 33 Publicly-Listed Telecom Companies 1.35x
Germany Market PEG Ratio Median Figure of 251 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

DB:ZCH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.38x ÷ 6.1%

1.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Telecom is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on China Telecom's assets?
Raw Data
DB:ZCH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CNY CN¥4.36
SEHK:728 Share Price * SEHK (2020-03-27) in HKD HK$2.32
SEHK:728 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.915 CN¥2.12
Germany Telecom Industry PB Ratio Median Figure of 7 Publicly-Listed Telecom Companies 1.12x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.43x
DB:ZCH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:728 Share Price ÷ Book Value per Share (both in CNY)

= 2.12 ÷ 4.36

0.49x

* Primary Listing of China Telecom.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Telecom is good value based on assets compared to the DE Telecom industry average.
X
Value checks
We assess China Telecom's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. China Telecom has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ZCH Future Performance

 How is China Telecom expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Telecom expected to grow at an attractive rate?
  • China Telecom's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • China Telecom's earnings growth is positive but not above the Germany market average.
  • China Telecom's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:ZCH Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:ZCH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 6.1%
DB:ZCH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 3.7%
Germany Telecom Industry Earnings Growth Rate Market Cap Weighted Average 19.2%
Germany Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:ZCH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:ZCH Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 485,674 123,048 32,607 1
2023-12-31 460,219 121,530 32,173 1
2022-12-31 415,185 113,770 23,806 14
2021-12-31 401,815 112,715 22,244 21
2020-12-31 386,688 109,805 20,536 20
2020-03-27
DB:ZCH Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-12-31 375,734 112,600 20,517
2019-09-30 374,979 20,565
2019-06-30 374,583 101,636 21,549
2019-03-31 376,608 99,661 21,468
2018-12-31 377,124 99,298 21,210
2018-09-30 376,233 19,123
2018-06-30 374,943 100,191 19,632
2018-03-31 371,117 18,964
2017-12-31 366,229 96,502 18,617
2017-09-30 363,685 19,003
2017-06-30 360,021 101,787 18,900
2017-03-31 357,599 18,250

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China Telecom's earnings are expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).
  • China Telecom's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:ZCH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from China Telecom Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ZCH Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 0.40 0.40 0.40 1.00
2023-12-31 0.40 0.40 0.40 1.00
2022-12-31 0.29 0.33 0.22 13.00
2021-12-31 0.27 0.32 0.22 20.00
2020-12-31 0.25 0.28 0.23 19.00
2020-03-27
DB:ZCH Past Financials Data
Date (Data in CNY Millions) EPS *
2019-12-31 0.25
2019-09-30
2019-06-30 0.27
2019-03-31
2018-12-31 0.26
2018-09-30
2018-06-30 0.24
2018-03-31 0.23
2017-12-31 0.23
2017-09-30
2017-06-30 0.23
2017-03-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • China Telecom is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess China Telecom's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China Telecom has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ZCH Past Performance

  How has China Telecom performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare China Telecom's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • China Telecom's year on year earnings growth rate has been positive over the past 5 years.
  • China Telecom's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • China Telecom's 1-year earnings growth is negative, it can't be compared to the Europe Telecom industry average.
Earnings and Revenue History
China Telecom's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from China Telecom Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ZCH Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 375,734.00 20,517.00 57,361.00
2019-09-30 374,979.00 20,565.00 59,330.00
2019-06-30 374,583.00 21,549.00 59,590.00
2019-03-31 376,607.81 21,467.69 62,190.43 112.06
2018-12-31 377,124.00 21,210.00 59,422.00
2018-09-30 376,233.00 19,123.00 59,228.00
2018-06-30 374,943.00 19,632.00 58,740.00
2018-03-31 371,117.14 18,964.14 64,471.56 231.42
2017-12-31 366,229.00 18,617.00 58,434.00
2017-09-30 363,685.00 19,003.00 59,334.00
2017-06-30 360,021.00 18,900.00 57,849.00
2017-03-31 357,599.00 18,250.00 56,671.00
2016-12-31 352,534.00 18,018.00 56,426.00
2016-09-30 348,701.00 21,236.00 55,817.00
2016-06-30 343,077.00 20,747.00 56,729.00
2016-03-31 336,175.00 20,127.00 56,258.00
2015-12-31 331,202.00 20,054.00 54,472.00
2015-09-30 327,103.00 17,872.00 52,205.00
2015-06-30 323,374.00 17,224.00 50,838.00
2015-03-31 322,663.00 17,179.00 56,348.00
2014-12-31 324,394.00 17,680.00 62,719.00
2014-09-30 326,863.00 18,989.00 67,856.00
2014-06-30 329,998.00 18,756.00 72,412.00
2014-03-31 326,928.00 18,388.00 70,689.00
2013-12-31 321,584.00 17,545.00 70,448.00
2013-09-30 311,522.00 17,110.00 69,112.00
2013-06-30 302,714.00 16,360.00 68,769.00
2013-03-31 293,087.00 15,381.00 67,181.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • China Telecom has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China Telecom used its assets less efficiently than the Europe Telecom industry average last year based on Return on Assets.
  • China Telecom's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess China Telecom's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China Telecom has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ZCH Health

 How is China Telecom's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up China Telecom's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • China Telecom's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • China Telecom's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of China Telecom's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from China Telecom Company Filings, last reported 2 months ago.

DB:ZCH Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 355,040.00 79,022.00 24,458.00
2019-09-30 348,395.00 119,641.00 22,856.00
2019-06-30 348,395.00 76,603.00 22,856.00
2019-03-31 349,253.34 67,332.93 24,090.41
2018-12-31 344,099.00 95,528.00 23,480.00
2018-09-30
2018-06-30 335,545.00 83,200.00 19,319.00
2018-03-31 335,388.23 81,588.91 17,732.88
2017-12-31 326,697.00 104,300.00 22,510.00
2017-09-30
2017-06-30 321,090.00 93,096.00 25,647.00
2017-03-31 316,348.00 112,528.00 27,948.00
2016-12-31 316,348.00 112,426.00 27,948.00
2016-09-30
2016-06-30 309,800.00 106,035.00 32,912.00
2016-03-31 304,751.00 116,669.00 34,388.00
2015-12-31 304,751.00 116,550.00 34,388.00
2015-09-30
2015-06-30 295,791.00 90,627.00 23,401.00
2015-03-31 290,108.00 106,552.00 21,815.00
2014-12-31 290,108.00 106,552.00 21,815.00
2014-09-30
2014-06-30 283,933.00 99,146.00 19,090.00
2014-03-31 278,664.00 110,377.00 18,357.00
2013-12-31 278,664.00 110,376.00 18,357.00
2013-09-30
2013-06-30 271,085.00 116,545.00 21,370.00
2013-03-31 266,100.00 99,808.00 32,829.00
  • China Telecom's level of debt (22.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (36.7% vs 22.3% today).
  • Debt is well covered by operating cash flow (142.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.1x coverage).
X
Financial health checks
We assess China Telecom's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. China Telecom has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ZCH Dividends

 What is China Telecom's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.36%
Current annual income from China Telecom dividends. Estimated to be 5.74% next year.
If you bought €2,000 of China Telecom shares you are expected to receive €107 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • China Telecom's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.66%).
  • China Telecom's dividend is above the markets top 25% of dividend payers in Germany (4.86%).
Upcoming dividend payment

Purchase China Telecom before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:ZCH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
Germany Telecom Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 5.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 319 Stocks 3.7%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:ZCH Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2024-12-31 0.22 1.00
2023-12-31 0.20 1.00
2022-12-31 0.13 15.00
2021-12-31 0.12 21.00
2020-12-31 0.11 22.00
2020-03-27
DB:ZCH Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2020-03-24 0.114 5.418
2019-04-10 0.107 3.695
2019-03-19 0.107 2.867
2018-05-28 0.094 2.781
2018-04-12 0.092 3.105
2018-03-28 0.092 3.302
2017-05-23 0.093 2.941
2017-04-06 0.093 2.751
2017-03-21 0.093 2.778
2016-05-25 0.080 2.450
2016-04-28 0.080 2.547
2016-04-08 0.079 2.331
2016-03-23 0.079 2.337
2015-05-27 0.076 2.315
2015-04-09 0.076 1.680
2015-03-18 0.076 1.885
2014-04-10 0.075 2.169
2013-05-20 0.066 2.246
2012-03-20 0.067 2.095
2011-04-06 0.069 1.814
2011-04-04 0.072 1.720
2011-03-22 0.072 1.827
2010-09-08 0.075 2.064
2010-08-25 0.075 2.192
2010-04-08 0.074 2.285
2009-08-28 0.075 2.408
2009-05-27 0.075 2.207
2009-04-09 0.075 2.367

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of China Telecom's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess China Telecom's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can China Telecom afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China Telecom has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ZCH Management

 What is the CEO of China Telecom's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ruiwen Ke
COMPENSATION CN¥779,000
AGE 57
TENURE AS CEO 0.8 years
CEO Bio

Mr. Ruiwen Ke has been Chairman and Chief Executive Officer of China Telecom Corporation Limited since May 22, 2019. Mr. Ke served as President and Chief Operating Officer of China Telecom Corporation Limited since October 25, 2018 until March 23, 2020. He was Executive Vice President of China Telecom Corporation Limited since March 20, 2012 until October 25, 2018 and served as its Joint Company Secretary since December 19, 2016 until July 20, 2018. Mr. Ke serves as a Vice President of China Telecommunications Corporation. He served as General Manager of Jiangxi Telecom Company Limited since September 12, 2003. Mr. Ke served as deputy Director General of the Jiangxi Posts and Telecommunications Administration, Deputy General Manager of Jiangxi Telecom and Managing Director of the Marketing Department and Managing Director of the Human Resources Department of China Telecom Corporation and China Telecommunications Corporation. Mr. Ke has extensive operational and managerial experience in the telecommunications industry. He served as Chairman of Jiangxi Telecom Company Limited since September 12, 2003. He has been an Executive Director of China Telecom Corp. Ltd. since May 30, 2012. He serves as Chairman and Chief Executive Officer of China Telecom Corporation Limited since March 8, 2019. Mr. Ke obtained a doctorate degree in business administration (DBA) from the ESC Rennes School of Business.

CEO Compensation
  • Ruiwen's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ruiwen's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the China Telecom management team in years:

1.7
Average Tenure
54
Average Age
  • The average tenure for the China Telecom management team is less than 2 years, this suggests a new team.
Management Team

Ruiwen Ke

TITLE
Chairman & CEO
COMPENSATION
CN¥779K
AGE
57
TENURE
0.8 yrs

Min Zhu

TITLE
Executive VP
COMPENSATION
CN¥272K
AGE
54
TENURE
1.7 yrs

Zhongyue Chen

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥763K
AGE
48
TENURE
5.3 yrs

Zhengmao Li

TITLE
President
AGE
57

Yuzhu Ma

TITLE
Managing Director of Corporate Culture Department
COMPENSATION
CN¥415K
AGE
65

Zhiyong Zhang

TITLE
Executive Vice President
AGE
52
TENURE
1.7 yrs

Guiqing Liu

TITLE
Executive VP & Director
AGE
52
TENURE
1.7 yrs

Guoquan Wang

TITLE
Executive VP & Director
AGE
47
TENURE
1 yrs

Rebecca Wong

TITLE
Joint Company Secretary
TENURE
3.3 yrs

Jinxue Xiao

TITLE
General Manager of Xinjiang Branch
COMPENSATION
CN¥500K
AGE
55
Board of Directors Tenure

Average tenure and age of the China Telecom board of directors in years:

2.8
Average Tenure
55
Average Age
  • The average tenure for the China Telecom board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ruiwen Ke

TITLE
Chairman & CEO
COMPENSATION
CN¥779K
AGE
57
TENURE
0.8 yrs

Min Zhu

TITLE
Executive VP
COMPENSATION
CN¥272K
AGE
54
TENURE
1.4 yrs

Zhongyue Chen

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥763K
AGE
48
TENURE
2.8 yrs

Guiqing Liu

TITLE
Executive VP & Director
AGE
52
TENURE
0.6 yrs

Guoquan Wang

TITLE
Executive VP & Director
AGE
47
TENURE
0.6 yrs

Erming Xu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥250K
AGE
70
TENURE
14.5 yrs

Aloysius Tse

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥471K
AGE
71
TENURE
14.5 yrs

Wang Hsuehming

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥257K
AGE
69
TENURE
5.8 yrs

Yixun Sui

TITLE
Chairman of Supervisory Committee
AGE
55

Shengguang Chen

TITLE
Non-Executive Director
AGE
55
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
25. Mar 20 Buy J.P. Morgan Asset Management, Inc. Company 20. Mar 20 20. Mar 20 35,239,643 €0.27 €9,410,570
12. Mar 20 Sell Franklin Resources, Inc. Company 11. Mar 20 11. Mar 20 -38,312,100 €0.31 €-11,876,530
06. Mar 20 Buy GIC Pte. Ltd. Company 03. Mar 20 03. Mar 20 6,362,421 €0.34 €2,171,775
29. Feb 20 Sell Franklin Resources, Inc. Company 27. Feb 20 27. Feb 20 -17,013,600 €0.35 €-5,925,060
24. Feb 20 Buy J.P. Morgan Asset Management, Inc. Company 19. Feb 20 19. Feb 20 16,229,351 €0.37 €6,077,536
05. Feb 20 Buy GIC Pte. Ltd. Company 31. Jan 20 31. Jan 20 9,120,000 €0.35 €3,224,925
20. Dec 19 Buy GIC Pte. Ltd. Company 18. Dec 19 18. Dec 19 14,200,000 €0.36 €5,064,068
05. Dec 19 Buy GIC Pte. Ltd. Company 03. Dec 19 03. Dec 19 6,038,000 €0.34 €2,074,390
03. Dec 19 Sell BlackRock, Inc. Company 28. Nov 19 28. Nov 19 -13,976,000 €0.36 €-4,979,654
28. Nov 19 Buy BlackRock, Inc. Company 26. Nov 19 26. Nov 19 17,296,000 €0.36 €6,160,126
11. Nov 19 Sell J.P. Morgan Asset Management, Inc. Company 06. Nov 19 06. Nov 19 -7,234,831 €0.39 €-2,816,193
07. Nov 19 Buy J.P. Morgan Asset Management, Inc. Company 04. Nov 19 04. Nov 19 6,280,057 €0.39 €2,427,289
30. Oct 19 Sell BlackRock, Inc. Company 25. Oct 19 25. Oct 19 -2,386,210 €0.41 €-966,904
24. Oct 19 Sell J.P. Morgan Asset Management, Inc. Company 21. Oct 19 21. Oct 19 -22,236,564 €0.41 €-9,192,067
16. Oct 19 Buy J.P. Morgan Asset Management, Inc. Company 11. Oct 19 11. Oct 19 26,362,997 €0.42 €11,138,442
11. Oct 19 Sell J.P. Morgan Asset Management, Inc. Company 08. Oct 19 08. Oct 19 -24,779,011 €0.42 €-10,488,479
26. Sep 19 Buy GIC Pte. Ltd. Company 24. Sep 19 24. Sep 19 7,500,000 €0.41 €3,080,605
25. Jul 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 22. Jul 19 22. Jul 19 41,054,173 €0.42 €17,273,570
23. Jul 19 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 18. Jul 19 18. Jul 19 -337,200 €0.42 €-142,606
23. Jul 19 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 18. Jul 19 18. Jul 19 60,300 €0.42 €25,502
23. Jul 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 18. Jul 19 18. Jul 19 -19,007,904 €0.42 €-8,038,649
23. Jul 19 Buy J.P. Morgan Asset Management, Inc. Company 18. Jul 19 18. Jul 19 76,000 €0.42 €32,141
22. Jul 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 17. Jul 19 17. Jul 19 16,256,587 €0.42 €6,861,767
08. Jul 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 03. Jul 19 03. Jul 19 -25,636,316 €0.44 €-11,395,614
03. Jul 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 28. Jun 19 28. Jun 19 20,844,377 €0.44 €9,149,384
27. Jun 19 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 24. Jun 19 24. Jun 19 -331,198 €0.44 €-144,353
27. Jun 19 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 24. Jun 19 24. Jun 19 114,900 €0.44 €50,079
27. Jun 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 24. Jun 19 24. Jun 19 -31,641,000 €0.44 €-13,790,757
27. Jun 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 24. Jun 19 24. Jun 19 29,553,649 €0.44 €12,880,983
26. Jun 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 21. Jun 19 21. Jun 19 1,396,021 €0.44 €620,431
20. Jun 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 17. Jun 19 17. Jun 19 -7,452,695 €0.44 €-3,276,970
13. Jun 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 10. Jun 19 10. Jun 19 7,305,896 €0.45 €3,263,901
10. May 19 Sell Franklin Resources, Inc. Company 08. May 19 08. May 19 -6,682,500 €0.45 €-3,039,094
22. Apr 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 16. Apr 19 16. Apr 19 7,834,187 €0.48 €3,763,038
23. Apr 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 17. Apr 19 17. Apr 19 -4,206,468 €0.48 €-2,009,921
X
Management checks
We assess China Telecom's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. China Telecom has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ZCH News

Simply Wall St News

ZCH Company Info

Description

China Telecom Corporation Limited, together with its subsidiaries, provides wireline and mobile telecommunications services primarily in the People’s Republic of China. It offers wireline voice services, including local wireline telephone services and long distance wireline services; CDMA mobile voice services, such as local calls, domestic and international long distance calls, intra-provincial roaming, and inter-provincial roaming and international roaming; wireline Internet access services comprising dial-up and broadband services; wireless Internet access services; and wireline, Internet, and mobile value-added services. The company also provides Best Tone information services; and information technology-based integrated solutions, such as system integration, outsourcing, special advisory, information application, knowledge, and software development services. In addition, it offers managed data services that include digital data network, frame relay, and asynchronous transfer mode services for government agencies, large corporations, and institutions; and leased line services, as well as sells, repairs, and maintains customer-end equipment. Further, the company provides international telecommunications services, including network equipment, international Internet access and transit, Internet data center, and mobile virtual network services in various countries, including the Asia Pacific, Europe, Africa, South America, and North America; and music production and related information, instant messenger, and e-commerce services, as well as sells telecommunications terminals. As of December 31, 2018, it had approximately 303 million mobile subscribers; 146 million wireline broadband subscribers; and 116 million access lines in service. The company was incorporated in 2002 and is based in Wanchai, Hong Kong. China Telecom Corporation Limited is a subsidiary of China Telecommunications Corporation.

Details
Name: China Telecom Corporation Limited
ZCH
Exchange: DB
Founded: 2002
HK$21,846,550,336
80,932,368,321
Website: http://www.chinatelecom-h.com/en/global/home.php
Address: China Telecom Corporation Limited
Everbright Centre,
28th Floor,
Wanchai,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 728 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 15. Nov 2002
OTCPK CHJH.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 15. Nov 2002
DB ZCH Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 15. Nov 2002
SHSC 728 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 15. Nov 2002
SZSC 728 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 15. Nov 2002
NYSE CHA SPONS ADR EACH REPR 100'H'COM CNY1 New York Stock Exchange US USD 14. Nov 2002
DB ZCHA SPONS ADR EACH REPR 100'H'COM CNY1 Deutsche Boerse AG DE EUR 14. Nov 2002
Number of employees
Current staff
Staff numbers
280,747
China Telecom employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/27 22:56
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2020/03/24
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.