Chunghwa Telecom (NYSE:CHT) Posts Quarterly Earnings Results

Key Points

• Chunghwa Telecom exceeded quarterly expectations: EPS came in at $0.44 versus the $0.43 consensus, while revenue reached $1.94 billion compared with estimates of $1.91 billion.
• Growth broadened beyond core telecom services. Second-quarter revenue rose 8.2% year over year, with ICT revenue up 32% and international revenue increasing about 79%, driven partly by AI supply-chain projects.
• AI infrastructure is a major investment priority, though capital spending is expected to accelerate in the second half and management has not disclosed total costs or projected returns for new data-center capacity. Analysts remain cautious, with the stock carrying a consensus “Reduce” rating.

Chunghwa Telecom (NYSE:CHT - Get Free Report) announced its quarterly earnings data on Wednesday. The utilities provider reported $0.44 earnings per share for the quarter, topping analysts' consensus estimates of $0.43 by $0.01, reports. Chunghwa Telecom had a net margin of 16.23% and a return on equity of 9.90%. The firm had revenue of $1.94 billion during the quarter, compared to analyst estimates of $1.91 billion.

Here are the key takeaways from Chunghwa Telecom's conference call:

• Second-quarter results exceeded guidance. Revenue rose 8.2% year over year to TWD 61.36 billion, while operating income increased 5.7% and EPS reached TWD 1.38, the company’s highest second-quarter EPS in 10 years.
• Core telecom trends remained favorable, with mobile service revenue up 3.2%, postpaid ARPU up 2.4%, and 5G market share at 39.4%. Fixed broadband revenue grew 3%, while OTT revenue increased 20% and roaming revenue rose 19% year over year.
• ICT and international businesses are emerging as major growth engines. ICT revenue rose 32% in the quarter, first-half contract value matched all of 2025, and international revenue increased approximately 79% at the business-group level, driven by AI supply-chain projects in the U.S. and Southeast Asia.
• Management is expanding AI infrastructure, including the Lunping data center, which could add up to 36 megawatts of capacity, and a Taichung facility supporting financial-sector colocation. The company also highlighted its IOWN optical network and AI ecosystem investments as longer-term opportunities, although material IOWN revenue is still some time away.
• First-half capital expenditure declined 14.3% year over year to TWD 9.85 billion, but management expects a larger share of spending in the second half as AI data-center and network projects progress. Executives did not disclose total investment requirements or projected returns for the new data-center capacity.

Chunghwa Telecom Trading Up 0.3%

NYSE:CHT traded up $0.10 during trading hours on Wednesday, hitting $41.99. The company had a trading volume of 61,681 shares, compared to its average volume of 180,463. The company has a market capitalization of $32.58 billion, a PE ratio of 25.61, a price-to-earnings-growth ratio of 1.92 and a beta of 0.29. The stock has a 50-day moving average price of $43.88 and a 200 day moving average price of $43.21. Chunghwa Telecom has a 52 week low of $39.28 and a 52 week high of $46.48. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.64 and a quick ratio of 1.46.

Chunghwa Telecom Cuts Dividend

The firm also recently declared an annual dividend, which will be paid on Friday, August 14th. Investors of record on Thursday, July 9th will be paid a $1.6525 dividend. The ex-dividend date of this dividend is Thursday, July 9th. This represents a yield of 398.0%. Chunghwa Telecom's dividend payout ratio (DPR) is presently 78.05%.

Wall Street Analyst Weigh In

CHT has been the subject of several recent research reports. Zacks Research downgraded shares of Chunghwa Telecom from a "hold" rating to a "strong sell" rating in a research note on Wednesday, July 22nd. Weiss Ratings reiterated a "hold (c)" rating on shares of Chunghwa Telecom in a report on Friday, July 17th. One analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Chunghwa Telecom has an average rating of "Reduce".

Hedge Funds Weigh In On Chunghwa Telecom

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Goldman Sachs Group Inc. boosted its position in Chunghwa Telecom by 67.5% during the 4th quarter. Goldman Sachs Group Inc. now owns 368,306 shares of the utilities provider's stock valued at $15,362,000 after acquiring an additional 148,378 shares in the last quarter. First Trust Advisors LP raised its position in shares of Chunghwa Telecom by 342.2% in the 3rd quarter. First Trust Advisors LP now owns 98,929 shares of the utilities provider's stock worth $4,315,000 after acquiring an additional 76,558 shares in the last quarter. Quantinno Capital Management LP raised its position in shares of Chunghwa Telecom by 142.6% in the 2nd quarter. Quantinno Capital Management LP now owns 129,440 shares of the utilities provider's stock worth $6,033,000 after acquiring an additional 76,087 shares in the last quarter. Creative Planning lifted its stake in shares of Chunghwa Telecom by 20.0% in the 3rd quarter. Creative Planning now owns 380,892 shares of the utilities provider's stock valued at $16,615,000 after purchasing an additional 63,523 shares during the period. Finally, Millennium Management LLC lifted its stake in shares of Chunghwa Telecom by 921.5% in the 3rd quarter. Millennium Management LLC now owns 67,113 shares of the utilities provider's stock valued at $2,927,000 after purchasing an additional 60,543 shares during the period. Hedge funds and other institutional investors own 2.11% of the company's stock.

About Chunghwa Telecom

Chunghwa Telecom Co, Ltd. is the largest integrated telecommunications service provider in Taiwan, serving both consumer and enterprise customers across the island and through international telecommunications links. The company offers a full range of voice, data and multimedia services and operates as the incumbent fixed-line operator while also competing in mobile, broadband and enterprise markets. Its network footprint and traffic interchange capabilities support domestic communications and cross-border connectivity for carriers and multinational businesses.

Chunghwa Telecom's product and service portfolio includes fixed-line telephony, mobile services (including 4G and 5G wireless access), broadband internet (DSL and fiber-to-the-home), and IPTV.

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