CHINA MOBILE(600941) 招商证券·2025-04-23 05:31Investment Rating - The report maintains a "Strong Buy" rating for the company [3]. Core Views - The company demonstrated resilient operational performance with steady revenue growth, achieving Q1 2025 revenue of CNY 263.8 billion, flat year-on-year, and a net profit of CNY 30.6 billion, up 3.5% year-on-year [1][4]. - The company is focusing on enhancing its AI service capabilities through a comprehensive "cloud to intelligence" strategy, optimizing its computing power network and expanding its AI offerings [5]. - The company is experiencing a short-term pressure on operating cash flow but is effectively managing costs, with a significant reduction in the proportion of key expenses relative to service revenue [5]. Summary by Sections Financial Performance - In Q1 2025, the company reported total revenue of CNY 263.8 billion, with service revenue of CNY 222.4 billion (up 1.4% year-on-year) and other revenue of CNY 41.4 billion (down 6.8% year-on-year) [1][4]. - EBITDA reached CNY 80.7 billion, reflecting a 3.4% year-on-year increase, with an EBITDA margin of 30.6% [4][5]. - The company’s net profit for Q1 2025 was CNY 30.6 billion, with a non-GAAP net profit of CNY 28.9 billion, marking a 10.8% year-on-year increase [4][5]. User Metrics - As of Q1 2025, the company had a total of 1.003 billion mobile users, with a net decrease of 936,000 users. The number of 5G network customers reached 578 million, with a penetration rate of 57.6% [2]. - The company’s fixed broadband user base grew to 320 million, with a net increase of 5.48 million users [2]. Market Strategy - The company is advancing its AI and DICT projects, enhancing its product solutions for business customers, and increasing its revenue share from emerging markets [2][5]. - The company is also focusing on expanding its international market presence with high-quality products [2]. Valuation and Forecast - The report projects the company’s net profit for 2025 to be CNY 144.7 billion, with a PE ratio of 16.8 times [6][23]. - The expected net profits for 2026 and 2027 are CNY 150.3 billion and CNY 155.9 billion, respectively, with corresponding PE ratios of 16.2 and 15.6 [6][23].