CHINA MOBILE(600941) 国信证券·2024-08-12 01:30Investment Rating - The report maintains an "Outperform" rating for China Mobile (600941 SH) [8][11][42] Core Views - China Mobile's revenue growth slowed in Q2 2024, with mobile ARPU declining from RMB 52 4 in H1 2023 to RMB 51 in H1 2024 [14][15][30] - The company's H1 2024 net profit grew by 5 29% YoY, exceeding revenue growth due to reduced depreciation and amortization and effective cost control [30][35] - China Mobile plans to stabilize ARPU through personalized operations for to C customers, home market expansion, and new business deployments like 5G and AI [30] - The company is investing heavily in computing power networks, with general computing power reaching 8 2 EFLOPS (FP32) and AI computing power at 19 6 EFLOPS (FP16) in H1 2024 [31] - China Mobile increased its interim dividend to HKD 2 60 per share, up 7 0% YoY, with plans to further raise the dividend payout ratio [31] Financial Performance - H1 2024 revenue reached RMB 547 billion, up 3 02% YoY, with Q2 revenue growing 1 09% YoY to RMB 283 billion [30] - H1 2024 net profit attributable to shareholders was RMB 80 2 billion, up 5 29% YoY [30] - Operating cash flow in H1 2024 was RMB 131 4 billion, down 18% YoY due to increased receivables from government and enterprise business [9][50] - The company's capital expenditure in H1 2024 was RMB 64 billion, focusing on computing network construction [31] Valuation and Forecasts - Revenue is projected to grow 7 0% in 2024, 6 1% in 2025, and 5 5% in 2026 [42] - Net profit attributable to shareholders is expected to increase by 6 9% in 2024, 5 3% in 2025, and 5 3% in 2026 [42] - The A share PE ratio is forecasted at 16x for 2024, 15x for 2025, and 14x for 2026, with a PB ratio of 1 6x for 2024 [42] - The H share PE ratio is projected at 12x for 2024, 11x for 2025, and 10x for 2026, with a PB ratio of 1 0x for 2024 [42] Industry Comparison - China Mobile (600941 SH) has a higher valuation compared to peers, with a 2024E PE of 15 5x and PB of 1 6x [24] - China Telecom (601728 SH) and China Unicom (600050 SH) have lower valuations, with 2024E PEs of 15 9x and 15 5x respectively [24] - The Hong Kong-listed counterparts of these companies generally have lower valuations than their A share counterparts [24]