CHINA MOBILE(600941) 国联证券·2024-08-11 07:30Investment Rating - The report upgrades the investment rating for China Mobile (600941) to "Buy" [6][10]. Core Views - The company reported a steady growth in its half-year results for 2024, with operating revenue reaching 546.744 billion yuan, a year-on-year increase of 3.02%. The main business revenue was 463.589 billion yuan, up 2.50% year-on-year. The net profit attributable to shareholders was 80.201 billion yuan, growing by 5.29% year-on-year [6][10]. - The 5G user penetration rate has surpassed 50%, with mobile users exceeding 1 billion. The company continues to lead in the "dual-gigabit" network and is advancing the commercial deployment of 5G-A [6][10]. - The mobile cloud business is experiencing rapid growth, contributing to the overall increase in profitability and dividend payout rates [6][10]. Financial Summary - For the first half of 2024, the operating cash flow was 131.377 billion yuan, a decrease of 18.16% year-on-year [10]. - The company expects operating revenues for 2024-2026 to be 1,069.780 billion yuan, 1,131.238 billion yuan, and 1,190.076 billion yuan, with year-on-year growth rates of 5.99%, 5.74%, and 5.20% respectively. The net profit attributable to shareholders is projected to be 140.425 billion yuan, 149.840 billion yuan, and 159.038 billion yuan for the same period, with growth rates of 6.57%, 6.70%, and 6.14% respectively [10][24]. - The earnings per share (EPS) are expected to be 6.55 yuan, 6.99 yuan, and 7.41 yuan for 2024, 2025, and 2026 respectively [10][24]. Market Position and Strategy - The company has achieved a significant milestone with over 1 billion mobile customers, including 514 million 5G network customers, reflecting a net increase of 49 million in the first half of 2024 [10]. - The enterprise market revenue reached 112 billion yuan, growing by 7.3% year-on-year, with a customer base of 30.38 million, adding 2.01 million customers [10]. - The company maintains a leading position in the public bidding market with an 18.4% share, an increase of 4.1 percentage points from 2023 [10].