小摩：中國移動第三季淨利潤遜預期 維持 “增持” 評級

According to the Zhitong Finance APP, JP Morgan has released a research report maintaining an "Overweight" rating for China Mobile (00941, 600941.SH), with a target price of HKD 110 for H shares and RMB 130 for A shares.

Morgan Stanley stated that China Mobile's service revenue in the third quarter increased by 0.8% year-on-year, and net profit rose by 1.9% year-on-year, which is 3% lower than market expectations, with growth slowing from 6% in the previous quarter, due to rising hardware sales costs. During the period, mobile users grew by 0.5% year-on-year to 1.01 billion, but average revenue per user (ARPU) declined by 3.2% year-on-year to RMB 45.5. Mobile revenue fell by 3% year-on-year, while fixed broadband revenue increased by 8%, supported by a 5% year-on-year growth in broadband users.

The group stated that DICT business revenue maintained a good growth rate in the first three quarters of this year, with AI direct revenue recording very rapid growth. Additionally, capital expenditure for the first three quarters of this year was RMB 117 billion, unchanged year-on-year, while the group previously guided for a full-year capital expenditure decline of 8% year-on-year to RMB 151 billion.

The report indicated that although traditional telecom service revenue may continue to be under pressure in the short term, and cloud revenue may take several quarters to accelerate growth again, the bank believes that the full-year dividend yield of approximately 6.2% for China Mobile's H shares remains attractive, and the group is expected to achieve positive growth in full-year profits