China Telecom Corporation Limited
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China Telecom Corporation Limited Financial Snapshot
Operating Performance
Fast Facts
No. 31, Jinrong Avenue, Xicheng District, The company reported revenue of US$37,991 million
Headquarters Address
Beijing, 100033,China during the fiscal year 2011 (2011). The company's
revenue grew at a CAGR of 12.45% during 2007–
Telephone + 861066428166
2011, with an annual growth of 17.15% over 2010. In
2011, the company recorded an operating margin of
Fax + 861066010728 9.85%, as against 10.67% in 2010.
Website www.chinatelecom-h.com
Revenue and Margins
Ticker Symbol, Stock Exchange 728, Hong Kong Stock Exchange
Number of Employees 309,799
Fiscal Year End December
Revenue (in US$ million) 37,991
SWOT Analysis
Strengths Weaknesses Return on Equity
Market recognition Limited geographic presence The company recorded a return on equity (ROE) of
6.44% for 2011, as compared to its peers, PCCW Ltd.
(Ticker: 0008), China Mobile Limited (Ticker: 941) and
Strong business performance Limited liquidity position China Unicom (Hong Kong) Limited (Ticker: 0762),
which recorded ROEs of 26.33%, 19.39% and 2.05%
Strong subscriber base Substantial debts respectively. The company reported an operating
margin of 9.85% in 2011.
Opportunities Threats
Return on Equity
Growing mobile broadband
Changes in regulatory environment
subscriptions
Growing mobile communications
Foreign exchange risks
market
Increasing demand for 3G services Intense competition
Liquidity Position
The company reported a current ratio of 0.47 in 2011,
as compared to its peers, PCCW Ltd., China Mobile
Limited and China Unicom (Hong Kong) Limited,
which recorded current ratios of 1.39, 1.40 and 0.18
respectively. As of December 2011, the company
recorded cash and short-term investments of worth
US$4,523 million, against US$1,989 million current
debt. The company reported a debt to equity ratio of
0.20 in 2011 as compared to its peers, PCCW Ltd.,
China Mobile Limited and China Unicom (Hong Kong)
Limited, which recorded debt to equity ratios of 3.85,
0.04 and 0.52 respectively.
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China Telecom Corporation Limited - SWOT Profile Page 1
China Telecom Corporation Limited
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ......................................................................................................................................... 5
1.2 Business Description ....................................................................................................................................... 5
1.3 Major Products and Services ........................................................................................................................... 6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ....................................... 7
2.2 Key Financial Performance Indicators ............................................................................................................ 10
2.2.1 Revenue and Operating Profit.................................................................................................................... 10
2.2.2 Asset and Liabilities ................................................................................................................................... 11
2.2.3 Net Debt vs. Gearing Ratio ........................................................................................................................ 12
2.2.4 Solvency ................................................................................................................................................... 13
2.2.5 Valuation ................................................................................................................................................... 14
2.3 Competitive Benchmarking ............................................................................................................................ 15
2.3.1 Market Capitalization ................................................................................................................................. 15
2.3.2 Efficiency................................................................................................................................................... 16
2.3.3 Turnover – Inventory and Asset ................................................................................................................. 17
2.3.4 Liquidity..................................................................................................................................................... 18
3 SWOT Analysis ...................................................................................................................................... 19
3.1 SWOT Analysis - Overview ............................................................................................................................ 19
3.2 Strengths ....................................................................................................................................................... 19
3.3 Weaknesses .................................................................................................................................................. 19
3.4 Opportunities ................................................................................................................................................. 20
3.5 Threats .......................................................................................................................................................... 20
4 Company Statement .............................................................................................................................. 22
5 History .................................................................................................................................................... 25
6 Key Employees ...................................................................................................................................... 26
7 Key Employee Biographies ................................................................................................................... 27
8 Locations and Subsidiaries .................................................................................................................. 28
8.1 Head Office ................................................................................................................................................... 28
8.2 Other Locations and Subsidiaries .................................................................................................................. 28
9 Appendix ................................................................................................................................................ 29
9.1 Methodology .................................................................................................................................................. 29
9.2 Ratio Definitions ............................................................................................................................................ 29
9.3 Disclaimer ..................................................................................................................................................... 33
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China Telecom Corporation Limited - SWOT Profile Page 2
China Telecom Corporation Limited
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List of Tables
Table 1: Major Products and Services ............................................................................................................................. 6
Table 2: Key Ratios - Annual ........................................................................................................................................... 7
Table 3: Key Ratios - Interim ........................................................................................................................................... 9
Table 4: Key Capital Market Indicators ............................................................................................................................ 9
Table 5: History ............................................................................................................................................................. 25
Table 6: Key Employees ................................................................................................................................................ 26
Table 7: Key Employee Biographies .............................................................................................................................. 27
Table 8: Subsidiaries ..................................................................................................................................................... 28
Table 9: