China Mobile (Hong Kong) Ltd., China's largest mobile telecommunications company, on Thursday reported a profit gain of 118 percent in the first half of 2000.
China Mobile's net profit soared to 8.72 billion Chinese renminbi (US$1.05 billion) in the period ended June 30, up from an profit of 4 billion renminbi a year earlier.
The profit came on revenue of 28.89 billion renminbi, up 70 percent from 16.94 billion in the first half of 1999.
China Mobile's shares on the Stock Exchange of Hong Kong closed today at HK$60 (US$7.69), up 25 cents.
Since state-owned incumbent carrier China Telecom spun off China Mobile as a listed entity on Nasdaq and the Stock Exchange of Hong Kong, its parent company has gradually sold its provincial mobile networks to the Hong Kong company, boosting its capital for expanding networks, said Bertrand Bidaud, a telecom analyst at Gartner Group Inc. Asia-Pacific, in Singapore.
In mobile telephony, "No other country in the world is growing as quickly as China," Bidaud said. "They have to invest a lot of money to keep up with the growth."
The company in June announced plans to buy another seven provincial networks, Bidaud said, which is likely to further strengthen China Mobile's position.
"Its a very well-valued company, so they can raise money on the stock market under good conditions," Bidaud said. Investors value the company not for its current voice subscribers, but for its growth potential, he added. "Here we are dealing with a very dynamic market," Bidaud said.
Since a split earlier this year between the fixed-line and mobile businesses of China Telecom, China Mobile (Hong Kong) has been controlled by China Mobile Communications Corp., in Beijing.
China Mobile, in Hong Kong, can be reached at +852-3121-8888 or via the Web at http://www.cthk.com.