China Mobile Limited (ADR) (CHL)’s True Global Value: Nokia Corporation (ADR) (NOK), Apple Inc (AAPL)

China Mobile Ltd. (ADR) (NYSE:CHL) grew to that size partly because of a substantial protectionist policy by the national government and frequent government intervention in its business affairs. Its niche is the rural market as Chinese farmers use their mobile phones and the internet to sell agricultural products, gain access to market prices for their produce, and facilitate wire transfers for payments and bank withdrawals.

As a result of government protection and a deep market, China Mobile reported a 6.6% operating revenue growth in the first half of 2012 compared to the same period in 2011, reaching RMB266.5 billion. Thus, diluted earnings per share rose to RMB3.06 from RMB3.02 the previous year. Over the past 12 months, China Mobile’s share price had been steady, averaging in the mid-$50s.

No way but forward

If 2012 was a good year for China Mobile, 2013 promises to be even better as smart phones are expected to make up the majority of the global phone market at 50.1%, according to IDC.

With Western and even Asian phone manufacturing firms gearing for a release of their units in the Chinese market, shareholders will benefit from the exponential growth of the Chinese mobile phone and internet market.

If only to indicate how far China Mobile has gone, in 2003 and 2007, the telecom service provider made available mobile services on Mount Everest, the world’s tallest peak. In May 2011, it extended its network reach to the disputed Spratly Islands in the Philippines.

Reverse flow

While Chinese balance of trade with Western nations has been mainly in favor of China due to the large volume of cheap goods produced at lower labor cost, Western investors could profit from the world’s largest consumer market–not by exports, but through investing their dollars on China Mobile Ltd. (ADR) (NYSE:CHL) stocks.

A company that keeps on growing its market, aided by protectionist policies from the national government and good governance, will continue to generate profits for shareholders, whether in China or the West, hopefully as fast as China’s population keeps growing.

The article China Mobile’s True Global Value originally appeared on Fool.com and is written by Jeremiah Feliciano.

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