Chunghwa Telecom (CHT)

Chunghwa Telecom (CHT - Analyst Report), the largest integrated telecom operator in Taiwan, declared first quarter 2009 financial results below our estimates. This was mainly due to an increase in employee bonus payouts and lower revenue as a result of weak economic conditions.

However, Chunghwa commands a significant market share in Taiwan for traditional voice and dial-up services, VoIP, IPTV and broadband. Aggressive rollout of fiber-to-the home and 3G network technologies, in our opinion, places the company ahead of the competition.