CHINA MOBILE Gains 1% Against Mkt as CLSA and Citi Say Stable Interim DPS Beats

HSI last stood at 25,235 this morning (14th), down 160 pts or 0.6%. CHINA MOBILE (00941.HK) +1.000 (+1.232%) Short selling $52.48M; Ratio 5.835% opened 0.43% higher this morning and held sturdy in early trading, hitting a peak of HKD82.55. It last traded at HKD82.1, up 1.11% against the broader market trend, with turnover of 7.1728 million shares involving HKD589 million.

CLSA said CHINA MOBILE's 1H results were disappointing. However, backed by solid AI demand, revenue from computing power services recorded healthy 14% YoY growth. Capex reversed its downtrend during the period, rising 4.5% YoY. Despite lower earnings and higher capital expenditure, CHINA MOBILE maintained interim DPS at RMB2.51, with the payout increasing to 69%. In view of weaker telecom revenue, CLSA trimmed its earnings forecast by 7%, but expected dividends to remain stable to higher, with a dividend yield of about 6.5%. The broker maintained its Outperform rating and kept its TP at HKD86.

Citi said CHINA MOBILE's 2Q revenue was RMB271.6 billion, down 3% YoY and 4% below both the broker's and market's expectations. Net profit was RMB49.6 billion, down 7% YoY, broadly in line with the broker's expectations but 7% below market forecasts. Interim DPS was RMB2.51 (about HKD2.90), up 5.5% YoY and above Citi's forecast of HKD2.73. Management also guided for a steadily improving full-year payout ratio. Capex for computing infrastructure jumped up 71% YoY, while full-year capex will be dynamically adjusted according to AI demand. Citi reiterated its Buy rating on CHINA MOBILE, with an H-share TP of HKD102.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-13 16:25.)