Huatai Securities lowers China Mobile's target price to 94.4 yuan, maintains "Buy" rating

Huatai Securities' research report pointed out that China Mobile (00941.HK) released its performance for the year 2025, with operating revenue increasing by 0.9% year-on-year to RMB 105.02 billion (the same below); net profit attributable to the parent company decreased by 0.9% year-on-year to RMB 13.71 billion, falling short of the bank's previous forecast of RMB 14.54 billion, mainly due to slight pressure on traditional business revenue. On a comparable basis (excluding the tax impact of package income separation), net profit attributable to the parent company increased by 2% year-on-year. The company plans to distribute a total dividend of HKD 5.27 for the year 2025, with a payout ratio increasing to 75%, and expects the payout ratio to remain stable or increase in 2026.

Huatai Securities is optimistic about the company's development potential. Considering the impact of value-added tax, it forecasts net profit attributable to the parent company for 2026 to 2028 to be RMB 130.2 billion, RMB 134.2 billion, and RMB 138.4 billion, respectively; the book value per share (BPS) to be RMB 67.23, RMB 68.85, and RMB 70.54, respectively.

Huatai Securities stated that the company has high profitability and long-term growth potential in the digital intelligence era. Considering the impact of value-added tax on performance, it has lowered the valuation premium, giving China Mobile (600941.SH) a 1.7 times price-to-book ratio for A shares in 2026, with the target price reduced from RMB 126.2 to RMB 114.3; for H shares, a 1.24 times PB for 2026, with the target price reduced from HKD 100.02 to HKD 94.4, maintaining a "Buy" rating for both Hong Kong and A shares