Telecom Sector Presentation

workablejeansΚινητά – Ασύρματες Τεχνολογίες

21 Νοε 2013 (πριν από 3 χρόνια και 8 μήνες)

66 εμφανίσεις

Telecom Sector Presentation

May 11, 2010

Jiying Wang

YongHui Wu

Agenda


Recommendations


Sector Overview


Analyses:

o
Business

o
Economic

o
Financial

o
Valuation


Conclusion

Recommendation


Increase SIM holding by 30 basis points to bring
it to 4%



Possible reallocation of funds within the SIM
Telecommunication Sector



Sector Overview

Sector

S&P 500 Weight

SIM Weight

+/
-

Consumer Discretionary

10.55%

10.44%

-
0.11%

Consumer Staples

10.91%

11.71%

0.80%

Energy

11.18%

9.76%

-
1.43%

Financials

16.47%

11.41%

-
5.07%

Health Care

11.55%

14.63%

3.07%

Industrials

10.76%

13.10%

2.34%

Information Technology

18.91%

20.18%

1.27%

Materials

3.45%

1.64%

-
1.82%

Telecommunication
Services

2.73%

3.70%

0.98%

Utilities

3.48%

2.10%

-
1.38%

Cash

0.00%

1.26%

1.26%

Dividend Receivables

0.00%

0.08%

0.08%




100.00
%


100.00
%


0.00
%

Industry Information

Name

Market

Cap

Telecom Services
-

Foreign

5462.1b

Wireless Communications

524.5b

Application Software

506.3b

Telecom Services


Domestic

284.9b

Diversified Computer System

279.3b

Sector Total

9059.8b

Sector Information: Size

SIM Holding Information

Name

Market
Cap

Verizon
Communication,


79.69b

NII Holdings,

Inc.

5.97b

Total

85.66b

Wireless Communications

Largest Companies

Telecom Service
-
Domestic

Name

Market

Cap

China mobile

189.5b

America
Movil

S.A.B. de

C.V

77.0b

NTT DOCOMO

64.3b

Deutsche
Telekom AG

47.1b


China Unicom HK

27.7b

Name

Market

Cap

AT&T

148.3b

Verizon

79.7b

BCE

22.4b

Century Tel

9.9b

Qwest
Communication
Internati

8.8b

NIHD is ranked 13 in wireless communication

Current Performance

S&P 500

Telecom Service

1 Day

-
1.53%

-
0.63%

MTD

-
6.39%

-
3.71%

QTD

-
5.01%

-
5.06%

YTD

-
0.38%

-
10.43%

Business Analysis

Wireless Communication


Growth


Still expanding, especially
internationally


Huge capital spending
required



Cyclical


Fluctuates a lot with
business cycle

Telecom Service
-

Domestic


Mature


Established networks and
slow demand increase


Little need for increased
capital spending



Cyclical


Relatively more resistant to
economic fluctuations

Supply & Demand


Ability to add new supply


3G market, especially in developing countries


4G market in the more developed countries



Demand varies globally


Higher demand increase in developing countries and little demand
increase in more developed countries


Innovations and advances in technology help to create new demand



Possible external factors


Government regulations

Porter’s 5 Forces

Wireless
Communications

Telecom Services


Domestic

Threat of new entry

High

High

Buyer power

Moderate

Moderate

Supplier power

Moderate

Low

Availability

of substitutes

High

High

Competition

High

High

Economic Analysis

Positive


GDP growth


Population growth


especially growth in middle class of developing nations


Consumer confidence


Per capita income


Negative


Unemployment rate


Energy Prices


increase cost of operation



Economic Analysis

Economic Analysis

Economic Analysis

Economic Analysis

Financial Analysis

Telecommunication

Financial Analysis

Telecommunication

Financial Analysis

Verizon Communications Inc.

Financial Analysis

Verizon Communications Inc.

Financial Analysis

NII Holdings, Inc.


Financial Analysis

NII Holdings, Inc.


Valuation Analysis

Relative to
S&P500

P/Trailing E

P/Forward E

P/B

P/S

P/CF

Sector

0.73

0.94

0.7

0.8

0.4

Wireless

Communication

NM

NM

0.6

0.6

0.4

Telecom Service


䑯浥獴楣

0.67

0.82

0.8

0.8

0.4

NIHD

0.92

1.1

1.1

1.2

0.7

VZ

0.71

0.88

0.9

0.6

0.4

Broken Bollinger line of Telecom Sector

Broken trend line of NIHD

Broken support of VZ

Conclusion


This sector is slightly undervalued



Foresee growth in wireless telecom and
international markets



Increase SIM portfolio by 30 basis points to 4%


Q&A