China Mobile (CHL) Reduces Subsidies for Apple (AAPL) iPhones

China Mobile Ltd. (CHL) shares are up nearly 3% in premarket trading following a Bloomberg report that states the telecomm company plans to cut by 38% subsidies related to Apple (AAPL) iPhone and Samsung smartphones. According to the publication, the $2 billion reduction in subsidies may increase market-share gains for Chinese domestic manufacturers such as Xiaomi Corp., which, with its budget devices that closely resemble the iPhone and iPad mini outsell Apple in China.

Following the news, China Mobile was upgraded to ‘Neutral’ from ‘Underperform’ at Mizuho. CHL, which is currently up $1.55 at $59.90, trades at a t-12 forward P/E ratio of 12.17 and a price/sales ratio for the same period of 2.22. EPS is at $4.80. The average volume for the $234.60 billion market cap company has been apprx. 1.1 million shares per day over the past 30 days. CHL has a beta of 0.15 and a short ratio of 3.40%. In the past 52 weeks, shares of China Mobile have traded between a low of $41.35 and a high of $58.85. Shares are up 9.23% y/y, and 11.59% year-to-date.

The chart below shows where the equity has traded over the last year, with the 50-day and 200-day moving averages included.

China Mobile provides mobile telecommunications and related services in Mainland China and Hong Kong. The company was incorporated in 1997 and is based in Central, Hong Kong.

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