Chunghwa Telecom - ADR

Strong Financial Performance in 2024: Chunghwa Telecom reported excellent financial results for 2024, with total revenue reaching a seven-year high at NT$65 billion in Q4, a 5.6% increase year-over-year, and full-year EPS of NT$4.8, marking a 7-year high and continuing a five-year growth streak. Operating income and net income also saw notable increases of 11.5% and 9%, respectively.

Positive Industry Position: The company holds a 37.9% market share in Taiwan's mobile sector, with a leading 38.8% in 5G subscribers. The mobile service revenue recorded a 1.7% year-over-year increase in Q4, benefiting from a 45% uplift in average monthly fees due to 5G migration, which is expected to contribute to continued growth in 2025.

Outlook for 2025: Forecasts for 2025 project revenue growth of 1.2% to 1.6%, driven by the successful adoption of 5G services and broadband speed upgrades. Overall performance is expected to enhance due to the rising recurring revenue in the ICT segment, particularly from cloud, cybersecurity, and IDC services, which experienced impressive growth in 2024.