CHINA MOBILE(600941) 招商证券·2025-04-23 09:05Investment Rating - The report maintains a "Strong Buy" rating for China Mobile [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 advancing its AI service capabilities through a comprehensive "cloud to intelligence" strategy, enhancing its AI infrastructure and service offerings [5] Financial Performance Summary - In Q1 2025, the company reported service revenue of CNY 222.4 billion, a year-on-year increase of 1.4%, while other business revenue decreased by 6.8% [1][4] - EBITDA for Q1 2025 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 mobile user base reached 1.003 billion, with a net decrease of 936,000 users, while 5G users increased by 25.27 million, reaching 578 million [2][5] Market Segment Performance - In the personal market, the mobile ARPU was CNY 46.9, down 2.1% year-on-year, while in the home market, the broadband user base grew to 320 million, with a comprehensive ARPU of CNY 40.8, up 2.3% year-on-year [2][5] - The enterprise market continues to expand with a focus on AI and DICT projects, contributing to an increased revenue share from this segment [2][5] Cash Flow and Cost Management - Operating cash flow for Q1 2025 was CNY 31.3 billion, down 45% year-on-year, attributed to accelerated payment schedules [5] - Cost management remains effective, with key expense ratios showing stability or improvement, such as depreciation and amortization costs as a percentage of service revenue decreasing to 21.5% [5][16] Future Profitability Projections - The company forecasts net profits of CNY 144.7 billion, CNY 150.3 billion, and CNY 155.9 billion for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 16.8, 16.2, and 15.6 [5][22][23]