Hong Kong Market – CHINA MOBILE Ltd (Stock code: 941)

China Mobile Ltd. operates as an investment holding company, which through its subsidiaries provides telecommunications services in Mainland China.China Mobile Ltd. has strong fundamentals given that more than 70% of listed companies have a lower mix of growth, profitability and debt. Margins returned by the company are among the highest on the stock exchange list with operating margin (EBIT/Sales) at 16.2% and Net Margin (Net Profit/Revenue) at 15%. The company also has attractive valuation levels with a low EV/Revenue ratio at 1.02x and attractive dividend yield at 4.6%. The stock is close to a major resistance at HKD 75.5, which should be gotten rid of so as to gain new appreciation potential. With relatively low growth outlooks, the group is not among those with the highest revenue growth potential. For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group’s activities is yet foreseen.