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Stock Profile: China Mobile
Regional Equity Strategy Q4 2007
Income Statement (RMB m) Balance Sheet (RMB m)
FY Dec 2005A 2006A 2007F 2008F FY Dec 2005A 2006A 2007F 2008F
Turnover 243,041 295,358 350,563 406,671 Net Fixed Assets 216,505 218,274 235,637 253,415
Cost of Goods Sold (169,355 (203,230 (237,343 (267,477 Invts in Assocs & JVs 0 0 0 0
Gross Profit 73,686 92,128 113,220 139,194 Other LT Assets 83,446 104,895 112,119 114,227
Other Opg (Exp)/Inc 4,309 3,686 3,286 2,936 Cash & ST Invts 106,386 153,461 187,871 256,512
EBIT 77,995 95,814 116,506 142,130 Other Current Assets 14,690 18,046 20,755 23,374
Other Non Opg (Exp)/Inc 0 0 0 0 Total Assets 421,027 494,676 556,382 647,528
Associates & JV Inc 0 0 0 0
Net Interest (Exp)/Inc 269 1,094 2,282 4,058 ST Debt 1,427 5,276 2,280 2,280
Exceptional Gain/(Loss) 0 0 0 0 Other Current Liab 108,527 135,331 157,312 176,111
Pre-tax Profit 78,264 96,908 118,787 146,188 LT Debt 12,912 9,941 6,945 6,945
Tax (24,675) (30,794) (38,257) (35,756) Other LT Liabilities 25,054 24,755 14,826 14,874
Minority Interest (40) (88) (131) (175) Shareholder’s Equity 272,824 319,002 374,517 446,641
Preference Dividend 0 0 0 0 Minority Interests 283 371 502 677
Net Profit 53,549 66,026 80,399 110,256 Total Cap. & Liab. 421,027 494,676 556,382 647,528
Net profit before Except. 53,549 66,026 80,399 110,256
EBITDA 134,363 160,388 187,401 216,154 Non-Cash Wkg. Cap (93,837) (117,28 (136,55 (152,73
Sales Gth (%) 26.3 21.5 18.7 16.0 Net Cash/(Debt) 92,047 138,244 178,646 247,287
EBITDA Gth (%) 27.0 19.4 16.8 15.3
EBIT Gth (%) 26.6 22.8 21.6 22.0
Effective Tax Rate (%) 31.5 31.8 32.2 24.5
Cash Flow Statement (RMB m)
Rates & Ratios
FY Dec 2005A 2006A 2007F 2008F FY Dec 2005A 2006A 2007F 2008F
Pre-Tax Profit 78,264 96,908 118,787 146,188 Gross Margin (%) 30.3 31.2 32.3 34.2
Dep. & Amort. 56,537 64,953 70,896 74,024 EBITDA Margin (%) 55.3 54.3 53.5 53.2
Tax Paid (24,585) (30,993) (38,257) (35,756) EBIT Margin (%) 32.1 32.4 33.2 34.9
Assoc. & JV Inc/(loss) 0 0 0 0 Net Profit Margin (%) 22.0 22.4 22.9 27.1
Non-Cash Wkg.Cap. 11,128 10,380 19,319 16,228 ROAE (%) 21.2 22.3 23.2 26.9
Other Operating CF 4,309 5,195 435 (798) ROA (%) 13.6 14.4 15.3 18.3
Net Operating CF 131,709 149,346 175,456 203,928 ROCE (%) 21.1 22.1 22.7 26.1
Capital Exp.(net) (65,895) (76,889) (99,759) (97,952) Div Payout Ratio (%) 39.3 47.2 48.0 48.0
Other Invts.(net) 0 (3,410) 0 0 Interest Cover (x) N/A N/A N/A N/A
Invts in Assoc. & JV 0 0 0 0 Debtors Turn (days) 12.7 11.2 10.7 10.3
Div from Assoc & JV 0 0 0 0 Creditors Turn (days) 129.2 134.1 140.9 141.5
Other Investing CF 440 1,872 3,755 4,888 Inventory Turn (days) 5.2 4.8 5.1 5.3
Net Investing CF (65,455) (78,427) (96,004) (93,064) Current Ratio (x) 1.1 1.2 1.3 1.6
Div Paid (18,894) (26,162) (30,764) (44,324) Quick Ratio (x) 1.1 1.2 1.3 1.5
Chg in Gross Debt (8,066) (104) (15,968) 0 Net Debt/Equity (X) CASH CASH CASH CASH
Capital Issues 3,422 4,093 3,163 2,932 Capex to Debt (%) 459.6 505.3 1,081.4 1,061.8
Other Financing CF (1,743) (1,626) (1,473) (830) N.Cash/(Debt)PS (RMB) 4.8 7.2 9.2 12.7
Net Financing CF (25,281) (23,799) (45,042) (42,223) Opg CFPS (RMB) 6.33 7.23 8.07 9.66
Net Cashflow 40,973 47,120 34,410 68,641 Free CFPS (RMB) 3.46 3.77 3.91 5.45
Valuation Graph : PE
27.0
22.0
17.0
12.0
7.0
2004 2005 2006 2007
Price & Price Relative to Index
HK$
117.00
107.00
97.00
87.00
77.00
67.00
57.00
47.00
37.00
27.00
17.00
2003 2004 2005 2006
Chin a M obile (LH S) Relative H SI IN D EX (R H S)
Relative Index
242
222
202
182
162
142
122
102
82
71