Chunghwa Telecom Co., Ltd (2412) AI Stock Analysis

Chunghwa Telecom Co., Ltd

(TWSE:2412)

Select Model

Rating:77Outperform

Price Target:TWD 186.00▲(15.53% Upside)

Action:initiatedcoverage

Date:11/09/26

Chunghwa Telecom scores well on the strength of an exceptionally resilient financial profile — minimal leverage, 38-40% EBITDA margins, NT$79bn of operating cash flow and comfortably covered dividends — reinforced by an outstanding latest quarter in which every key metric beat guidance and management signalled it may exceed full-year targets, led by 19% ICT growth and accelerating cloud, IDC and AI data-centre demand. Technical trends are firmly constructive with the price above all major moving averages, though momentum readings are now extended. The main constraint is valuation: a 36.3x P/E is a steep price for a business compounding revenue at only low single digits with roughly 10% return on equity, and the 3.18% yield only partly compensates. Overall, this is a high-quality, defensive income holding whose rich multiple limits near-term upside.

Positive Factors

Stable ProfitabilityChunghwa Telecom has maintained strong gross, operating, and net margins across the reported periods, indicating pricing discipline and cost control. This profitability profile should support continued network investment, digital-service expansion, dividends, and resilience through normal telecom-market fluctuations.

Negative Factors

Mature Growth ProfileThe company’s established telecom base produces dependable earnings but limits the pace of organic expansion. Low historical revenue growth means future improvement will depend more heavily on 5G monetization, broadband upgrades, ICT execution, and digital services than on broad market expansion.

Chunghwa Telecom Co., Ltd (2412) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.26T
Dividend Yield: 3.23%
Average Volume (3M): 11.75M
Price to Earnings (P/E): 29.5
Beta (1Y): -0.05
Revenue Growth: 7.99%
EPS Growth: 10.07%
Country: TW
Employees: 19,912
Sector: General
Sector Strength: 55
Industry: Telecommunications Services

Chunghwa Telecom Co., Ltd Business Overview & Revenue Model

Company Description

Chunghwa Telecom Co., Ltd., together with its affiliated companies, delivers an extensive array of telecommunication services across Taiwan and to international markets. The enterprise's operations are structured into distinct segments: Domestic Fixe...

Chunghwa Telecom Co., Ltd Financial Statement Overview

Summary

A fortress-like financial profile. The balance sheet (88) is among the most conservative in global telecom, with debt-to-equity of just 0.10, debt falling to NT$38.0bn and equity funding ~72% of assets. Cash flow (86) is robust: operating cash flow of NT$79.3bn is roughly 2x net income and free cash flow improved to NT$51.6bn as 5G capex intensity eases. The income statement (79) shows exceptional stability — gross margin held in a 34-37% band, operating margin near 21%, EBITDA margin 38-40%, and net income rising steadily to NT$38.7bn — but growth is the clear limitation, with revenue compounding only ~2.6% annually and return on equity around 10% reflecting an asset-heavy, over-capitalized structure.

Income Statement

79Positive

Balance Sheet

88Very Positive

Cash Flow

86Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	244.82B	236.00B	228.57B	221.34B	215.71B	209.44B
Gross Profit	85.59B	84.48B	81.99B	79.58B	79.09B	74.33B
EBITDA	91.43B	91.69B	87.80B	87.58B	86.47B	84.26B
Net Income	38.98B	38.69B	37.19B	36.96B	36.36B	35.62B
Balance Sheet
Total Assets	553.63B	535.87B	534.30B	523.74B	523.20B	513.07B
Cash, Cash Equivalents and Short-Term Investments	79.57B	57.50B	57.94B	52.40B	52.11B	43.28B
Total Debt	38.20B	38.02B	43.23B	43.64B	43.47B	38.91B
Total Liabilities	171.55B	135.08B	138.49B	129.04B	131.47B	121.81B
Stockholders Equity	366.63B	386.26B	382.83B	382.31B	379.12B	379.33B
Cash Flow
Free Cash Flow	55.19B	51.57B	50.25B	43.58B	42.52B	39.27B
Operating Cash Flow	81.38B	79.27B	79.24B	74.56B	75.95B	74.86B
Investing Cash Flow	-25.25B	-28.38B	-35.33B	-50.17B	-30.79B	-31.17B
Financing Cash Flow	-49.02B	-50.19B	-41.52B	-40.73B	-34.80B	-34.31B

Chunghwa Telecom Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2412 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2412	77Outperform	TWD 1.24T	29.54	―	3.23%	7.99%	10.07%
TW:3045	72Outperform	TWD 387.16B	24.02	―	3.68%	1.68%	10.91%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

TW:2412 and its peers over the selected period
Show on chart	Ticker	Company Name	Price	Change	% Change
	TW:2412	Chunghwa Telecom Co., Ltd	161.00	34.40	27.17%
	TW:3045	Taiwan Mobile Co., Ltd.	129.00	25.06	24.11%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026

Chunghwa Telecom Co., Ltd AI Stock Analysis