# Chunghwa Telecom (2412.TW)

Canonical: https://gigainvestors.com/s/2412.TW

Analysis as of: 2026-10-16T07:34:09.239Z. Financial observations: FY2000–FY2026.

Listing currency: TWD. Reporting currency: TWD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: TWD 152.50 per share; close as of 2026-10-15.

Estimated value: low TWD 78.32 per share, central TWD 87.79 per share, high TWD 100.40 per share. Buy at or below the central value TWD 87.79 per share. Valuation as of 2026-10-16T07:34:09.239Z; scenarios are not confidence intervals.

Expected annual return: 6.8% at the stated quote. About 6.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; TW 10-year bond 2.0% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.02×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.21×

- FY2018: 0.20×

- FY2019: 0.21×

- FY2020: 0.20×

- FY2021: 0.21×

- FY2022: 0.22×

- FY2023: 0.21×

- FY2024: 0.21×

- FY2025: 0.21×

- LTM to Jun 2026: 0.20×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 10.2%

- ROIC, second-lowest year: 9.0%

- Typical minus recent gross margin: -0.2 pp

- Typical gross margin (annual median): 35.6%

- Recent gross margin (lower of latest and 3-year median): 35.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 13.7%

- ROIC including acquisitions, ten-year median: 11.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 12.2%

- FY2017: 11.7%

- FY2018: 10.4%

- FY2019: 8.8%

- FY2020: 9.0%

- FY2021: 9.6%

- FY2022: 10.1%

- FY2023: 10.1%

- FY2024: 10.3%

- FY2025: 10.7%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.18×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: TWD 217B

- Net income, five-year total: TWD 185B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 2.7 pp

- Working capital / revenue, final three-year average: 14.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.04×

- FY2022: 1.11×

- FY2023: 1.20×

- FY2024: 1.23×

- FY2025: 1.29×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 11.7% vs 10.3%

- Per-share earnings: 5.16 to 4.78 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.0%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: TWD 227B

- Cumulative retained earnings: TWD -59B

- Diluted shares, 10-year annual growth: 0.0%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -1.0%

- Per-share value change: TWD -0.38

- Per-share value, starting three-year median: TWD 5.16

- Per-share value, ending three-year median: TWD 4.78

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: TWD 51B

- Cumulative net income, 10 years: TWD 365B

- ROIC, first three-year median: 11.7%

- ROIC, last three-year median: 10.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: TWD 5.16

- FY2017: TWD 5.01

- FY2018: TWD 4.58

- FY2019: TWD 4.23

- FY2020: TWD 4.31

- FY2021: TWD 4.59

- FY2022: TWD 4.68

- FY2023: TWD 4.76

- FY2024: TWD 4.78

- FY2025: TWD 4.98

### accounting: pass

- Sloan accruals: -7.6%

- Receivables to sales index (DSRI): 1.06×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.05×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.15×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.6%

- FY2017: -7.1%

- FY2018: -6.6%

- FY2019: -8.2%

- FY2020: -8.1%

- FY2021: -7.6%

- FY2022: -7.6%

- FY2023: -7.2%

- FY2024: -7.9%

- FY2025: -7.6%

## Holders

## Price story

Price needs cash profits to grow 8.5% a year for ten years · sales +3.7%

Story as of 2026-10-16T09:59:59.349Z; price observation 2026-10-15.

Price needs cash profits to grow 8.5% a year for ten years

### Sales · FY2025–2026

sales +3.7%; source https://www.sec.gov/Archives/edgar/data/1132924/000119312526155848/cht-20251231.htm; observed 2026-04-15.

- FY2017: TWD 228B 

- FY2018: TWD 215B 

- FY2019: TWD 179B 

- FY2020: TWD 208B 

- FY2021: TWD 209B 

- FY2022: TWD 216B 

- FY2023: TWD 221B 

- FY2024: TWD 229B 

- FY2025: TWD 236B 

- FY2026: TWD 245B 

### Gross margin · FY2025

gross margin 35.8%; source https://www.sec.gov/Archives/edgar/data/1132924/000119312526155848/cht-20251231.htm; observed 2026-04-15.

- FY2016: 35.8% 

- FY2017: 35.5% 

- FY2018: 35.2% 

- FY2019: 35.3% 

- FY2020: 34.0% 

- FY2021: 35.5% 

- FY2022: 36.7% 

- FY2023: 36.0% 

- FY2024: 35.9% 

- FY2025: 35.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are TWD 236 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1132924/000119312526155848/cht-20251231.htm (filed 2026-04-15); FY2025: revenue 236004563000; grossProfit 84483140000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 2412.TW: Chunghwa Telecom Co., Ltd., together with its subsidiaries, operates as an integrated telecommunications service provider in Taiwan and internationally. The company operates through Consumer Business, Enterprise Business, International Business, and Others segments. Its services primarily include mobile, fixed-line, information and communication technology (ICT), and sales and other services. The company provides mobile services, including prepaid and postpaid plans; fixed-line services, such as fixed broadband and voice, leased line, video, and satellite services; and fixed broadband services comprising broadband access, data communication, and Wi-Fi services. It also offers ICT services consisting of cloud, content delivery network, advanced networks defense system, and web application firewall. In addition, it distributes and sells mobile handsets and wearable devices on its mobile network to customers through its directly owned stores, online store, and third-party retailers, as well as offers interconnection services. The company was incorporated in 1996 and is headquartered in Taipei, Taiwan.

### Why customers stay

Margins ranged from 35.8% to 36% during 2023–25; it earns 10.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); FY2023: grossProfit / revenue = 36%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); FY2024: grossProfit / revenue = 35.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1132924/000119312526155848/cht-20251231.htm (filed 2026-04-15); FY2025: grossProfit / revenue = 35.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); 10-year return on capital observations [[2016,0.12238921986832998],[2017,0.11728438257983126],[2018,0.10376558587257181],[2019,0.08755629576820718],[2020,0.09047867994621411],[2021,0.09641766008107804],[2022,0.10139980691534711],[2023,0.10052754057330147],[2024,0.10255222112015404],[2025,0.10674915141670481]]; median 0.10197601401775058. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 37% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1132924/000119312526155848/cht-20251231.htm (filed 2026-04-15); Gross margin observations: [[2021,0.3548971437483046],[2022,0.36662910680592836],[2023,0.3595144187979742]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); FY2016: growth capex 0; upkeep 23799592000; owner earnings 48733268000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); FY2017: growth capex 0; upkeep 38179969000; owner earnings 32602709000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); FY2018: growth capex 0; upkeep 29047934000; owner earnings 40263566000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); FY2019: growth capex 0; upkeep 22710865000; owner earnings 44475166000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); FY2020: growth capex 33977435000; upkeep 37138572000; owner earnings 31694870600. Growth capex / owner earnings = 1.0720168392168794.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); FY2021: growth capex 0; upkeep 35588880000; owner earnings 37188783400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); FY2022: growth capex 0; upkeep 33427621000; owner earnings 40224877600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); FY2023: growth capex 0; upkeep 30978000000; owner earnings 44296147000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); FY2024: growth capex 0; upkeep 28990000000; owner earnings 45639600000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1132924/000119312526155848/cht-20251231.htm (filed 2026-04-15); FY2025: growth capex 0; upkeep 27698023000; owner earnings 49974474800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); Dividend observations: [[2016,42551146000],[2017,38336525000],[2018,37204714000],[2019,34745603000],[2020,32782969000],[2021,33403565000],[2022,35746314000],[2023,36476000000],[2024,36910000000],[2025,38787232000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 41.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 2412.TW SharesStats.PercentInsiders = 41.183 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 8.5% yearly over ten years; actual growth was 1.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); Ten-year compound average after fade. Initial solved rate 0.10868300258214314. Price 152.5; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 5.518017461157002 → FY2025 6.4267585905349796. Closing-price date 2026-10-15.

## Monthly share-price history (TWD per share)

- 2016-10: TWD 108.00 per share

- 2016-11: TWD 107.50 per share

- 2016-12: TWD 101.50 per share

- 2017-01: TWD 102.00 per share

- 2017-02: TWD 102.00 per share

- 2017-03: TWD 103.00 per share

- 2017-04: TWD 102.00 per share

- 2017-05: TWD 107.50 per share

- 2017-06: TWD 108.00 per share

- 2017-07: TWD 102.00 per share

- 2017-08: TWD 105.00 per share

- 2017-09: TWD 104.50 per share

- 2017-10: TWD 103.00 per share

- 2017-11: TWD 103.50 per share

- 2017-12: TWD 106.00 per share

- 2018-01: TWD 108.50 per share

- 2018-02: TWD 109.50 per share

- 2018-03: TWD 113.00 per share

- 2018-04: TWD 113.00 per share

- 2018-05: TWD 109.00 per share

- 2018-06: TWD 110.00 per share

- 2018-07: TWD 106.00 per share

- 2018-08: TWD 108.50 per share

- 2018-09: TWD 110.00 per share

- 2018-10: TWD 109.50 per share

- 2018-11: TWD 107.00 per share

- 2018-12: TWD 113.00 per share

- 2019-01: TWD 107.00 per share

- 2019-02: TWD 107.00 per share

- 2019-03: TWD 109.50 per share

- 2019-04: TWD 111.00 per share

- 2019-05: TWD 112.50 per share

- 2019-06: TWD 113.00 per share

- 2019-07: TWD 108.00 per share

- 2019-08: TWD 109.00 per share

- 2019-09: TWD 111.00 per share

- 2019-10: TWD 112.00 per share

- 2019-11: TWD 113.00 per share

- 2019-12: TWD 110.00 per share

- 2020-01: TWD 108.00 per share

- 2020-02: TWD 108.00 per share

- 2020-03: TWD 107.50 per share

- 2020-04: TWD 109.50 per share

- 2020-05: TWD 110.50 per share

- 2020-06: TWD 117.00 per share

- 2020-07: TWD 109.50 per share

- 2020-08: TWD 108.50 per share

- 2020-09: TWD 107.00 per share

- 2020-10: TWD 107.00 per share

- 2020-11: TWD 108.50 per share

- 2020-12: TWD 109.00 per share

- 2021-01: TWD 108.00 per share

- 2021-02: TWD 109.50 per share

- 2021-03: TWD 111.50 per share

- 2021-04: TWD 114.00 per share

- 2021-05: TWD 113.50 per share

- 2021-06: TWD 114.00 per share

- 2021-07: TWD 115.00 per share

- 2021-08: TWD 112.00 per share

- 2021-09: TWD 110.50 per share

- 2021-10: TWD 110.50 per share

- 2021-11: TWD 112.00 per share

- 2021-12: TWD 116.50 per share

- 2022-01: TWD 117.50 per share

- 2022-02: TWD 124.50 per share

- 2022-03: TWD 127.00 per share

- 2022-04: TWD 131.00 per share

- 2022-05: TWD 127.00 per share

- 2022-06: TWD 122.00 per share

- 2022-07: TWD 121.50 per share

- 2022-08: TWD 121.00 per share

- 2022-09: TWD 114.00 per share

- 2022-10: TWD 111.00 per share

- 2022-11: TWD 113.50 per share

- 2022-12: TWD 113.00 per share

- 2023-01: TWD 112.50 per share

- 2023-02: TWD 115.50 per share

- 2023-03: TWD 119.50 per share

- 2023-04: TWD 127.00 per share

- 2023-05: TWD 126.00 per share

- 2023-06: TWD 116.50 per share

- 2023-07: TWD 116.00 per share

- 2023-08: TWD 116.00 per share

- 2023-09: TWD 116.00 per share

- 2023-10: TWD 116.00 per share

- 2023-11: TWD 119.50 per share

- 2023-12: TWD 120.00 per share

- 2024-01: TWD 119.00 per share

- 2024-02: TWD 120.50 per share

- 2024-03: TWD 127.00 per share

- 2024-04: TWD 124.00 per share

- 2024-05: TWD 128.00 per share

- 2024-06: TWD 125.50 per share

- 2024-07: TWD 121.50 per share

- 2024-08: TWD 124.00 per share

- 2024-09: TWD 125.50 per share

- 2024-10: TWD 122.00 per share

- 2024-11: TWD 123.00 per share

- 2024-12: TWD 123.50 per share

- 2025-01: TWD 124.50 per share

- 2025-02: TWD 128.00 per share

- 2025-03: TWD 128.50 per share

- 2025-04: TWD 129.50 per share

- 2025-05: TWD 129.50 per share

- 2025-06: TWD 135.00 per share

- 2025-07: TWD 129.00 per share

- 2025-08: TWD 132.50 per share

- 2025-09: TWD 133.50 per share

- 2025-10: TWD 131.00 per share

- 2025-11: TWD 130.50 per share

- 2025-12: TWD 130.50 per share

- 2026-01: TWD 133.50 per share

- 2026-02: TWD 134.00 per share

- 2026-03: TWD 133.00 per share

- 2026-04: TWD 136.00 per share

- 2026-05: TWD 137.00 per share

- 2026-06: TWD 141.50 per share

- 2026-07: TWD 139.50 per share

- 2026-08: TWD 136.00 per share

- 2026-09: TWD 143.50 per share

- 2026-10: TWD 148.00 per share

## Annual estimated value (TWD per share)

- FY2016: low TWD 63.06 per share, central TWD 71.16 per share, high TWD 81.94 per share

- FY2017: low TWD 59.73 per share, central TWD 67.44 per share, high TWD 77.70 per share

- FY2018: low TWD 60.30 per share, central TWD 68.03 per share, high TWD 78.32 per share

- FY2019: low TWD 50.35 per share, central TWD 56.86 per share, high TWD 65.53 per share

- FY2020: low TWD 58.84 per share, central TWD 66.37 per share, high TWD 76.40 per share

- FY2021: low TWD 57.44 per share, central TWD 64.66 per share, high TWD 74.28 per share

- FY2022: low TWD 62.75 per share, central TWD 70.55 per share, high TWD 80.94 per share

- FY2023: low TWD 64.28 per share, central TWD 72.29 per share, high TWD 82.95 per share

- FY2024: low TWD 66.79 per share, central TWD 75.05 per share, high TWD 86.05 per share

- FY2025: low TWD 73.03 per share, central TWD 82.16 per share, high TWD 94.32 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:56.586Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1132924/000119312526155848/cht-20251231.htm); period 2025-12-31, filed 2026-04-15.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.