CHINA MOBILE(600941) 广发证券·2024-08-10 08:09Investment Rating - The report assigns a Buy-A/Buy-H rating to China Mobile (600941 SH/00941 HK) [3] - The current price is 102 00 RMB/71 30 HKD, with a target price of 127 95 RMB/78 34 HKD [3] Core Views - China Mobile reported H1 2024 revenue of 5467 billion RMB (YoY +3 0%), with operating revenue of 4636 billion RMB (YoY +2 5%) and net profit attributable to shareholders of 802 billion RMB (YoY +5 3%) [4] - The net profit margin improved to 14 7% (YoY +0 3pct), with Q2 net profit margin reaching 17 9% (YoY +0 7pct) [4] - Digital transformation revenue grew 11 0% YoY to 1471 billion RMB, accounting for 31 7% of operating revenue (YoY +2 4pct) [5] - 5G customer penetration increased to 51 4%, with 5 14 billion 5G customers (YoY +10 5%) [5] - Home market revenue grew 7 5% YoY to 698 billion RMB, with 3 09 billion broadband customers (YoY +8 0%) and ARPU of 43 4 RMB (YoY +0 2%) [5] - Enterprise market revenue increased 7 3% YoY to 1120 billion RMB, with 18 4% market share in public bidding and mobile cloud revenue growing 19 3% YoY to 504 billion RMB [5] - ROE improved to 12 0% (YoY +0 2pct), while operating cash flow decreased 18 2% YoY to 1314 billion RMB due to increased receivables and faster payments to support the supply chain [5] Financial Forecasts - Net profit attributable to shareholders is projected to be 1391/1466/1540 billion RMB for 2024/2025/2026 [6] - Revenue growth is expected to be 3 1%/3 4%/3 6% for 2024/2025/2026, with net profit growth of 5 6%/5 4%/5 0% [10] - EPS is forecasted to be 6 48/6 84/7 18 RMB for 2024/2025/2026, with ROE stable at 10 1%/10 4%/10 6% [10] Market Performance - China Mobile's stock performance has outperformed the CSI 300 index, with a 22% increase compared to the index's 14% increase over the past year [8]