Core Insights - The article compares Telefonica Brasil (VIV) and Chunghwa (CHT) to determine which stock offers better value for investors [1] Group 1: Zacks Rank and Analyst Outlook - Telefonica Brasil has a Zacks Rank of 1 (Strong Buy), indicating a more favorable earnings estimate revision trend compared to Chunghwa, which has a Zacks Rank of 3 (Hold) [3] - The improving analyst outlook for VIV suggests a more positive sentiment among analysts [3] Group 2: Valuation Metrics - VIV has a forward P/E ratio of 19.00, while CHT has a higher forward P/E of 25.43, indicating that VIV may be undervalued relative to CHT [5] - The PEG ratio for VIV is 0.88, significantly lower than CHT's PEG ratio of 5.40, suggesting better growth prospects relative to its valuation for VIV [5] - VIV's P/B ratio is 2.03, compared to CHT's P/B of 2.54, further supporting the argument that VIV is a more attractive investment [6] Group 3: Value Grades - VIV has earned a Value grade of B, while CHT has a Value grade of D, indicating that VIV is perceived as a better value stock [6] - The combination of Zacks Rank and Style Scores suggests that VIV stands out as the preferable option for value investors at this time [6]

Core Insights - Chunghwa Telecom Co., Ltd. (CHT) reported a revenue of approximately $2.1 billion, exceeding the estimated $1.8 billion, indicating strong financial performance [1][3] - The Consumer Business Group experienced a revenue increase of 5.9%, significantly contributing to overall performance, while the Enterprise Business Group faced a decline of 7.9% [4][5] - CHT maintains a low debt-to-equity ratio of 0.10 and a current ratio of 1.50, reflecting strong financial health and good liquidity [1][6] Financial Performance - In Q4 2025, CHT's total revenue increased by 0.5% to NT$ 65.65 billion (approx. $2.1 billion USD) [4] - The Consumer Business Group's revenue rose to NT$ 39.54 billion (approx. $1.25 billion USD), while the Enterprise Business Group's revenue decreased to NT$ 22.02 billion (approx. $0.70 billion USD) [4] - Total operating costs and expenses rose by 0.7% to NT$ 54.15 billion (approx. $1.72 billion USD), leading to a decrease in operating income by 2.2% to NT$ 11.38 billion (approx. $0.36 billion USD) [5] Financial Metrics - CHT's price-to-earnings (P/E) ratio is approximately 27.26, and the price-to-sales ratio is about 4.34 [6] - The enterprise value to sales ratio is around 4.40, and the enterprise value to operating cash flow ratio is approximately 13.86 [6]

Core Insights - Chunghwa Telecom reported a full-year revenue increase of 2.7% year-over-year to TWD 236.11 billion for 2025, driven by higher mobile handset volumes and strong performance in semiconductor testing and ICT contributions [1][5][8] - The company achieved an all-time high in full-year revenue and an EPS of TWD 4.99, marking an 8-year high and the sixth consecutive year of growth [4][8] - Fourth quarter revenue reached TWD 65.65 billion, up 0.5% year-over-year, attributed to strong mobile device sales and sustained momentum in core telecom services [3][5] Financial Performance - Full-year income from operations rose 3.6%, while net income increased by 4%, resulting in an EPS of TWD 4.99 compared to TWD 4.8 the previous year [1] - Fourth quarter income from operations fell 2.2% year-over-year due to one-off impairment losses related to the 3G network sunset [2] - EBITDA for the full year increased by 2.6% to TWD 88.77 billion, with an EBITDA margin of 37.6% [1] Market Position and Trends - Chunghwa maintained a 41% market share in mobile revenue and a 39.7% subscriber market share in Taiwan, with 5G subscriber market share reaching 39.2% by the end of 2025 [9] - The average monthly fee uplift from 5G migration remained at 41%, indicating strong demand for higher-tier services [9] - Fixed broadband ARPU rose to NT$819 per month, up 3.8% year-over-year, driven by high-speed upgrade promotions [10] ICT and Consumer Services - Group ICT revenue declined 6% year-over-year in the fourth quarter, although full-year ICT revenue still grew, supported by AIoT and IDC services [13] - Consumer application services saw a 17% year-over-year increase in multiple-play packages, marking 16 consecutive quarters of growth [11] - Hami Video's ARPU increased by over 25% year-over-year in the fourth quarter, despite an overall decline in subscriptions [12] 2026 Outlook and CapEx - Management projects approximately 2% revenue growth for 2026, with EPS guidance of NT$4.82 to NT$5.02 [6][17] - CapEx is budgeted at TWD 31.91 billion, with a 6.3% decrease in mobile CapEx and increased non-mobile spending for IDC and satellite services [6][18] - Rising costs are anticipated due to investments in AI talent and electricity [20] International Business and Network Investments - International subsidiary revenue fell 7% year-over-year in the fourth quarter, while revenue from South Asia and Southeast Asia increased by 12% [14] - The completion of the SJC2 submarine cable and the first phase of Apricot contributed to a 2.2% year-over-year growth in fixed line services revenue [16]

Financial Performance and Key Metrics - Chunghwa Telecom reported a full year revenue of TWD 236.11 billion for 2025, marking a 2.7% increase compared to 2024, driven by strong mobile device sales and robust performance in the ICT sector [19][20] - The company's EPS for 2025 reached TWD 4.99, up from TWD 4.8 in the previous year, representing an eight-year high [3][21] - Fourth quarter revenue was TWD 65.65 billion, a 0.5% year-over-year increase, making it the highest fourth quarter revenue in nearly a decade [17][18] Business Segment Performance - Mobile revenue market share increased to 41%, with a subscriber market share of 39.7%, driven by growth in postpaid subscribers [7] - Fixed broadband ARPU reached NT$819 per month, a 3.8% increase year-over-year, supported by high-speed upgrade promotions [8] - ICT revenue declined by 6% year-over-year in the fourth quarter, but full year ICT revenues still recorded robust growth [10][11] Market Performance - The 5G subscriber market share increased to 39.2%, with a penetration rate of 46.4% among smartphone users by the end of 2025 [7] - Revenue from South Asia and Southeast Asia markets increased by 12% year-over-year, while international subsidiaries' revenue decreased by 7% due to lower demand for voice services [14] Company Strategy and Industry Competition - Chunghwa Telecom plans to focus on extending pre-6G opportunities in AIoT, satellite, and big data services, expecting combined revenue to surpass TWD 10 billion in 2026 [5] - The company aims to enhance its satellite services and has secured contracts for government projects, indicating a strategic move towards expanding its service offerings [13] Management Comments on Operating Environment and Future Outlook - Management expressed confidence entering 2026, citing a stable mobile market and successful strategies for ARPU enhancement in fixed broadband [4] - The company anticipates a 2% revenue growth for 2026, driven by core business momentum and digital transformation opportunities in the ICT sector [25] Other Important Information - Chunghwa Telecom received multiple awards for its ESG accomplishments and was recognized as one of the World's Most Trustworthy Companies in 2025 [6] - The company secured a 20-year corporate power purchase agreement for renewable energy, supporting its commitment to achieving net zero by 2045 [6] Q&A Session Summary Question: Details on the increase in non-mobile CapEx for 2026 - Management explained that the increase is primarily due to fixed line maintenance, satellite, cables, and IDC investments [31][34] Question: Clarification on the increase in operating costs - The increase is attributed to investments in human resources, particularly for AI-related talents, and uncertainties regarding electricity costs in Taiwan [32] Question: Request for more detailed breakdown of non-mobile CapEx - Management acknowledged the request for greater detail in future disclosures regarding non-mobile CapEx allocations [36]

Financial Performance and Key Metrics - Chunghwa Telecom reported a record high full-year revenue of TWD 236.11 billion for 2025, reflecting a 2.7% increase compared to 2024, driven by strong mobile device sales and robust performance in the ICT sector [20][21] - The company's EPS reached TWD 4.99, marking an 8-year high and extending annual growth momentum for the sixth consecutive year [3][21] - In Q4 2025, consolidated revenue was TWD 65.65 billion, a 0.5% year-over-year increase, marking the highest fourth-quarter revenue in nearly a decade [18][19] Business Line Performance - Mobile revenue market share increased to 41%, with subscriber market share at 39.7%, driven by growth in postpaid subscribers [7] - Fixed broadband ARPU reached NT$819 per month, a 3.8% increase year-over-year, supported by high-speed upgrade promotions [8] - ICT revenue declined by 6% year-over-year in Q4 due to a high comparison base, but full-year ICT revenues still recorded robust growth [10][11] Market Performance - 5G subscriber market share increased to 39.2%, with a penetration rate of 46.4% among smartphone users by the end of 2025 [7] - Revenue from international subsidiaries decreased by 7% year-over-year, primarily due to lower demand for voice services [14] - However, revenue in South Asia and Southeast Asia markets increased by 12% year-over-year, supported by completed construction projects [15] Company Strategy and Industry Competition - The company plans to focus on extending pre-6G opportunities in AIOT, satellite, and big data services, expecting combined revenue to surpass TWD 10 billion in 2026 [5] - Chunghwa Telecom aims to leverage its satellite services as part of government contracts to enhance long-term service agreements [14] - The company is also investing in AI-driven connectivity and edge computing to create new revenue streams [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence entering 2026, citing a stable mobile market and successful fixed broadband strategies [4] - The company anticipates continued growth in ICT business driven by digital transformation opportunities [26] - Operating costs are expected to increase by 3.5% to 3.7%, primarily due to investments in talent and infrastructure [26][33] Other Important Information - Chunghwa Telecom received multiple awards for its ESG accomplishments and was recognized as one of the World's Most Trustworthy Companies in 2025 [6] - The company secured a 20-year corporate power purchase agreement for renewable energy to support its 2045 net zero commitment [6] Q&A Session Summary Question: Details on the increase in non-mobile CapEx for 2026 - Management explained that the increase is driven by fixed line maintenance, satellite, cables, and IDC investments [31][32] Question: Clarification on the increase in operating costs - Management highlighted that the increase is due to investments in human resources, electricity costs, and higher depreciation [33][34] Question: Request for more detailed breakdown of non-mobile CapEx - Management acknowledged the request but noted that they do not separately disclose exact numbers for each non-mobile item [35][36]

Financial Performance and Key Metrics - Chunghwa Telecom reported a full year revenue of TWD 236.11 billion for 2025, marking a 2.7% increase compared to 2024, driven by strong mobile device sales and robust performance in the ICT sector [20][21] - The company's EPS reached TWD 4.99, an increase from TWD 4.8 in the previous year, representing an 8-year high [3][21] - For Q4 2025, consolidated revenue was TWD 65.65 billion, a 0.5% year-over-year increase, making it the highest fourth quarter revenue in nearly a decade [18][19] Business Segment Performance - In the mobile segment, Chunghwa Telecom achieved a mobile revenue market share of 41% and a subscriber market share of 39.7%, with a 4.7% year-over-year growth in mobile service revenue [7][8] - Fixed broadband ARPU reached NT$819 per month, a 3.8% increase year-over-year, driven by high-speed upgrade promotions [8][9] - The ICT segment saw a 6% year-over-year decline in revenue for Q4, but full year ICT revenues recorded robust growth, with recurring ICT revenue increasing by 15% [10][11] Market Performance - The 5G subscriber market share increased to 39.2%, with a penetration rate of 46.4% among smartphone users by the end of 2025 [7] - International subsidiaries experienced a 7% year-over-year revenue decrease, primarily due to lower demand for voice services, while South Asia and Southeast Asia markets saw a 12% revenue increase [14][15] Company Strategy and Industry Competition - The company plans to focus on extending pre-6G opportunities in AIOT, satellite, and big data services, expecting combined revenue to surpass TWD 10 billion in 2026 [5] - Chunghwa Telecom aims to enhance its satellite services and has secured contracts for government projects, indicating a strategic move towards expanding its service offerings [13] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence entering 2026, citing a stable mobile market and successful fixed broadband strategies [4] - The company anticipates continued growth in ICT business driven by digital transformation opportunities and plans to invest in talent and infrastructure [26][27] Other Important Information - Chunghwa Telecom received multiple awards for its ESG accomplishments and was recognized as one of the World's Most Trustworthy Companies in 2025 [6] - The company secured a 20-year corporate power purchase agreement for renewable energy to support its 2045 net zero commitment [6] Q&A Session Summary Question: Details on the increase in non-mobile CapEx for 2026 - Management explained that the increase is primarily due to fixed line maintenance, satellite, cables, and IDC investments [31][32] Question: Clarification on the increase in operating costs - The increase is attributed to investments in human resources, particularly for AI-related talents, and uncertainties regarding electricity policies in Taiwan [33][34] Question: Request for more detailed breakdown of non-mobile CapEx - Management acknowledged the request and indicated that IDC and cloud investments are significant components of non-mobile CapEx [35][37]

Core Insights - Chunghwa Telecom reported its highest fourth quarter revenue in nearly a decade at NT$65.65 billion, achieving full year results that met or exceeded all upper end guidance [4][6] - Full year revenue reached an all-time high of NT$236.11 billion, a 2.7% increase year over year, with full year EPS at NT$4.99, marking an eight-year high [4][11] - The company emphasized its focus on digital innovation and operational excellence as key drivers of its performance [4] Fourth Quarter 2025 Financial Highlights - Total revenue increased by 0.5% to NT$65.65 billion [6][7] - Consumer Business Group revenue rose by 5.9% to NT$39.54 billion, driven by mobile and broadband services [6][8] - Enterprise Business Group revenue decreased by 7.9% to NT$22.02 billion, impacted by prior project recognitions [6][9] - International Business Group revenue increased by 2.5% to NT$2.56 billion, supported by demand for IDC services [6][10] - Operating income decreased by 2.2% to NT$11.38 billion, with a margin of 17.34% [6][13] - Net income attributable to stockholders increased by 3.2% to NT$9.29 billion, with EPS at NT$1.20 [6][13] Full Year 2025 Financial Highlights - Total revenue for 2025 increased by 2.7% to NT$236.11 billion [11] - Consumer Business Group revenue increased by 2.4% to NT$143.37 billion [6][11] - Enterprise Business Group revenue increased by 2.5% to NT$77.24 billion [6][11] - International Business Group revenue decreased by 4.1% to NT$9.52 billion [6][11] - Operating income for 2025 increased by 3.6% to NT$48.55 billion, with a margin of 20.56% [6][14] - Net income attributable to stockholders increased by 4.0% to NT$38.69 billion, with EPS at NT$4.99 [6][14] Cash Flow and EBITDA - Cash flow from operating activities decreased by 2.2% year over year to NT$77.50 billion [15] - EBITDA for the fourth quarter was NT$21.55 billion, a decrease of 0.2% year over year [15][16] - EBITDA for 2025 increased by 2.6% to NT$88.77 billion, with a margin of 37.60% [16] Business Highlights - As of December 31, 2025, mobile subscribers increased by 0.9% to 13.24 million, with mobile service revenue up by 4.7% to NT$17.68 billion [18] - Fixed broadband subscribers slightly increased by 0.5% to 4.45 million, with broadband revenue growing 3.8% to NT$11.88 billion [19] 2026 Guidance - The company expects total revenue to increase by NT$5.88 to NT$7.57 billion, or 2.5% to 3.2%, for 2026 [21][23] - Operating costs and expenses are expected to rise by NT$6.54 to NT$7.01 billion, or 3.5% to 3.7% [21][23] - Net income attributable to stockholders is projected to be between NT$37.39 and NT$38.94 billion, reflecting a potential decrease of NT$1.30 to an increase of NT$0.25 billion year over year [24]

February 3, 2026 © Chunghwa Telecom 4Q 2025 Operating Results NOTE CONCERNING FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward- looking statements can be identified by terminology such a ...

Group 1 - Investors in the Diversified Communication Services sector may consider Telefonica (TELFY) or Chunghwa (CHT) as potential stocks for investment [1] - The Zacks Rank system, which emphasizes companies with positive earnings estimate revisions, is a key strategy for identifying value stocks [2][3] - TELFY has a Zacks Rank of 2 (Buy), indicating an improving earnings outlook, while CHT has a Zacks Rank of 3 (Hold) [3] Group 2 - Value investors typically analyze traditional metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share to identify undervalued stocks [4] - TELFY has a forward P/E ratio of 7.71, significantly lower than CHT's forward P/E of 25.38, indicating better value [5] - TELFY's PEG ratio is 0.27, while CHT's PEG ratio is 5.39, further suggesting TELFY is a more attractive investment option [5] - TELFY's P/B ratio is 0.91 compared to CHT's P/B of 2.54, reinforcing TELFY's superior valuation metrics [6] - Based on the valuation metrics, TELFY has earned a Value grade of A, while CHT has a Value grade of D [6][7]

Financial Position - As of September 30, 2025, total assets amounted to NT$ 513,095,556 thousand, a decrease from NT$ 534,491,827 thousand as of December 31, 2024[8] - Current assets were reported at NT$ 99,787,952 thousand, representing 20% of total assets, while noncurrent assets accounted for NT$ 413,307,604 thousand, or 80%[8] - Total liabilities stood at NT$ 122,665,684 thousand, which is 23% of total assets, compared to NT$ 136,386,971 thousand (26%) at the end of 2024[8] - The company's cash and cash equivalents decreased to NT$ 23,526,659 thousand, down from NT$ 36,259,689 thousand, reflecting a decline of approximately 35%[8] - Total equity attributable to stockholders of the parent was NT$ 376,613,756 thousand, representing 74% of total equity, compared to NT$ 384,950,690 thousand (72%) at the end of 2024[8] - The balance of equity attributable to stockholders of the parent as of September 30, 2025, was NT$376,613,756,000, compared to NT$374,105,135,000 as of September 30, 2024, indicating a growth of approximately 0.7%[12] - The total equity as of September 30, 2025, was NT$390,429,872,000, an increase from NT$386,687,601,000 in 2024, representing a growth of about 1.0%[12] Revenue and Income - Revenues for Q3 2025 reached NT$57,924,337, a 4.2% increase from NT$55,613,476 in Q3 2024[9] - Net income for Q3 2025 increased to NT$9,854,849, up 6.1% from NT$9,285,286 in Q3 2024[11] - The company reported a total of NT$170,463,142 in revenues for the nine months ended September 30, 2025, a 3.4% increase from NT$164,672,680 in the same period of 2024[9] - Net income for the nine months ended September 30, 2025, was NT$29,406,456,000, an increase from NT$28,216,292,000 in the same period of 2024, representing a growth of approximately 4.2%[12] - Total comprehensive income for Q3 2025 was NT$9,771,252, a 7.1% increase from NT$9,126,773 in Q3 2024[11] - Basic earnings per share for Q3 2025 were NT$1.22, up from NT$1.16 in Q3 2024[11] Expenses and Costs - Operating expenses for Q3 2025 totaled NT$9,413,711, maintaining 16% of revenues, similar to Q3 2024[9] - Research and development expenses for Q3 2025 were NT$1,097,567, consistent with 2% of revenues[9] - Total employee benefit expenses for the nine months ended September 30, 2025, were $38,047,239, up from $36,284,679 in the same period of 2024, indicating a growth of 4.9%[162] - Total depreciation and amortization expenses for the nine months ended September 30, 2025, were NT$30,762,010, slightly up from NT$30,350,253 in the same period of 2024, showing a growth of 1.4%[161] Cash Flow and Investments - Cash generated from operations for the nine months ended September 30, 2025, was NT$54,905,131,000, a decrease from NT$58,875,832,000 in 2024, reflecting a decline of approximately 6.3%[14] - Cash dividends distributed by Chunghwa Telecom for 2024 amounted to NT$38,787,232,000, compared to NT$36,909,931,000 for 2023, reflecting an increase of about 5.0%[12] - Net cash used in investing activities was NT$10,645,711, a slight decrease from NT$11,127,584 in the prior year, indicating a 4.3% improvement[18] - The company reported a net cash used in financing activities of NT$47,473,586, up from NT$41,272,741, indicating a 15% increase[18] Assets and Liabilities - Current liabilities totaled NT$ 66,517,984 thousand, which is 13% of total liabilities, compared to NT$ 79,893,042 thousand (15%) at the end of 2024[8] - The total noncurrent liabilities were NT$ 56,147,700 thousand, which is 10% of total liabilities, compared to NT$ 56,493,929 thousand (11%) at the end of 2024[8] - The company’s investments accounted for using the equity method were NT$ 8,823,513 thousand, a decrease from NT$ 9,073,464 thousand, indicating a decline of about 2.8%[8] - The company recognized a total of $755,792 in provisions as of September 30, 2025, a decrease from $976,485 at the end of 2024[137] Ownership and Investments in Associates - The company maintained a consistent ownership interest of 100% in several subsidiaries, including Chunghwa Telecom Singapore and Chunghwa Telecom Global[26] - Chunghwa's ownership interest in CHT Security Co., Ltd. decreased to 56.69% as of September 30, 2025, from 63% in December 2024[31] - The company recognized a loss of control over Chunghwa Smart Technology Co., Ltd. and reclassified it as an investment in associate[31] - The carrying amount of the investment in Next Commercial Bank Co., Ltd. (NCB) was $3,680,266 thousand as of September 30, 2025, down from $3,950,922 thousand as of December 31, 2024[82] Financial Instruments and Hedging - The company entered into forward exchange contracts to hedge against foreign currency risk, with a notional amount of NT$297,544,000 for forecast purchases[128] - The change in fair value of hedging instruments for forecast equipment purchases was $(7,049) as of September 30, 2025[128] - The company’s hedge strategy includes assessing market conditions to determine the hedge ratio for foreign currency exposure[123] Capital Management - The company maintained a balanced capital structure by paying cash dividends, increasing share capital, and managing debt levels[192] - The company’s capital management strategy focuses on optimizing the debt and equity balance to maximize stakeholder returns[191]