CHINA MOBILE(600941) 浙商证券·2025-04-23 04:51Investment Rating - The investment rating for the company is "Buy" [7] Core Views - The company's Q1 performance shows steady growth, with a revenue of 263.8 billion yuan, a slight increase of 0.02% year-on-year. The main business revenue reached 222.4 billion yuan, up 1.4% year-on-year, and the net profit attributable to shareholders was 30.6 billion yuan, reflecting a 3.5% increase year-on-year. The net profit margin improved by 0.4 percentage points to 11.6% [1] - The company aims for a trend of low-to-high growth in annual performance, with guidance provided during the 2024 earnings briefing indicating a steady increase in revenue and good profit growth for 2025 [1] Summary by Sections Financial Performance - In Q1 2025, the company achieved an EBITDA of 80.7 billion yuan, representing a year-on-year growth of 3.4%. The weighted average return on equity remained stable at 2.2% year-on-year [1] - The mobile user base stood at 1.003 billion, with a net decrease of 940,000 users compared to the end of 2024. The 5G user base reached 578 million, with a penetration rate of approximately 57.6% [2] - The company reported a mobile ARPU of 46.9 yuan, down 2.1% year-on-year, while the family broadband user base increased to 328 million, with a quarterly net addition of 5.48 million users [2] Cost Management - Operating expenses decreased by 1.22% year-on-year, with significant reductions in sales expenses by 3.61% and other operating expenses by 8.16%. However, network operation support costs increased by 1.65% [3] - The net cash flow from operating activities was 31.3 billion yuan, a decline of 45.0% year-on-year, primarily due to accelerated payments to private and small enterprises [3] Earnings Forecast and Valuation - Revenue growth is projected at 3.3%, 3.2%, and 3.1% for 2025 to 2027, with net profit growth expected at 5.1%, 5.0%, and 5.0% respectively. The earnings per share are forecasted to be 6.74 yuan in 2025, with a P/E ratio of 16.76 [4][6]