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UBS Lifts CHINA MOBILE TP to HKD83; AI Investment Drives Higher Capex
2026-08-14 14:39:51
CHINA MOBILE (00941.HK)'s 2Q service revenue dropped 4.8% YoY to RMB233 billion, while EBITDA declined 7.9% YoY to RMB97 billion and net profit sank 7.5% YoY to RMB50 billion, missing UBS and market expectations by 1-9%, owing to VAT adjustments and macro headwinds, UBS said in a report.

Regarding capex, 1H capex grew 4.5% YoY, thanks to AI network investment, although management accentuated that full-year capex remains under control. Traditional telecom capex was predicted to shrink 20% for the full year, vs only a 9.8% decrease in 1H. Interim DPS was RMB2.51, flat YoY. UBS believed this signals stable full-year dividends.

UBS fine tuned its forecasts and extended its valuation model by six months. It raised the TP from HKD81 to HKD83 and maintained a Neutral rating, believing the current share price implies a 2026E dividend yield of about 6-7%, which should support the stock price.
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AASTOCKS Financial News
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