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Ebeling Heffernan have issued a strong buy on CHL today as the company made plans to diversify holding to include non telecom assets. Our short term target is $60 and our long term target is $100.

China Mobile Ltd. (NYSE:CHL, SEHK:0941) is China’s dominant mobile service provider, with 60% national market share. It is the world’s largest telecom (telecommunications company) by subscriber count, serving more than 384 million people as of March 27th, 2008. Its size gives it an efficiency and resource advantage over its competitors, but brings a burden as well. As the shining star of the Chinese telecom industry, China Mobile is expected to be a main financial supporter of any home-grown telecom technologies–a literally draining honor.

China Mobile is currently focusing its domestic expansion and development resources on rural market capture. Rural markets are much more sparsely penetrated than urban ones, and China Mobile’s extensive existing network gives it a significant boost in the race to grab as many of the rural market mobile users as possible. China Mobile’s future success will depend in large part on its rural expansion.

China Mobile said on Wednesday it is in talks with Shanghai Pudong Development Bank over plans to buy new shares in the lender. It also said it was discussing a ‘potential strategic cooperation’.

The statement, filed to the Hong Kong Stock Exchange after the close of Wednesday’s trading, did not specify the timeframe or details of the negotiations.

‘No indication can be given by the company of the timing of the subscription and the strategic cooperation, and the transaction may or may not proceed,’ Grace Wong, secretary of Hong Kong-listed China mobile, said in the statement.

Reports said last week that Shanghai Pudong, a medium-sized Chinese bank, had plans to issue around 2.2 billion new shares, representing a 20 per cent stake, to China Mobile.

They said the deal could give China Mobile, the world’s largest phone operator by market value, a platform to offer wireless-banking services to its local customers in the world’s fastest-growing economy.

It would also help replenish capital at the Shanghai-based bank after a massive lending spree to support China’s stimulus package during the global financial crisis.

Dividend Information

Yield %

3.2

Annual Dividend

1.56

Latest Dividend

1.56 (2009-09-10)

Financial Strength

Revenue (TTM)

$60,434,266,451

Earnings (TTM)

$16,531,291,220

Quick Ratio

0.5:1

Current Ratio

1.3:1

Total Debt/Equity

0.07:1

Shayne Heffernan www.livetradingnews.com