China Mobile 0941

[winston]

not vested

China Mobile foresees stable income

China Mobile (0941) chairman Yang Jie told the annual general meeting that revenue and profit would be stable this year despite the coronavirus pandemic during the first quarter.

In response to minor shareholders' concerns about earnings and dividend policies after slower profit growth since China Mobile started the 5G business last year, Yang said the dividend payout ratio was 60 percent, which was high among Hong Kong-listed stocks.

Also, the current dividend yield is around 5 percent.

Dividend for this year would be stable, he said.

He said that the company has built more than 50,000 5G base stations in 30 mainland cities and plans to develop 5G in over 300 cities this year. He expects 5G development to peak in the next two to three years.

China Mobile's 5G subscribers have reached 50 million and is confident of achieving the full-year target of 70 million.

Source: The Standard

https://www.thestandard.com.hk/breaking ... ble-income

[winston]

not vested

CHINA MOBILE Mounted Nearly 3% on 5G Co-building with Parent, CBN

2020/05/21

The telecom was reiterated at Overweight and Buy by JP Morgan and Citigroup, with target prices of $73 and $78 to reflect the benefit from co-building and co-sharing of 5G network of China Mobile Communications Group and CBN on the company.

China Mobile Parent Co-builds 5G with CBN, Likely Positive to China Mobile, China Tower

Source: AAStocks Financial News

[winston]

not vested

China Mobile (941 HK) - Stable outlook with key areas of guidance affirmed

China Mobile’s (CM; 941 HK) 2Q20 results were broadly in-line with expectations.

Service revenue increased 2.1% YoY to RMB 189.3b.

2Q20 net profit dipped 0.3% to RMB 32.3b, while that of 1H was down 0.5% YoY to RMB 55.8b (or 52% of our full-year forecast) – we deem this to be within expectations.

With mobile service revenue rebound registered for both China Unicom and CM thus far, we continue to believe that the revenue environment for the industry is improving.

CM has noted that it plans to start 700 MHz co-build in early 2021.

Management has noted that when subscribers transit to 5G, the ARPU uplift is ~6% compared to when they were on 3G/4G services.

Management has reiterated its full-year capex guidance of RMB 179.8b, and is also maintaining its previous guidance of positive growth in service revenue with stable net profit and dividends.

All-in, we see this as a stable set of results, but believe investors might view this as a tad underwhelming, compared to that of China Unicom’s.

We maintain our estimates and FV of HK$58.42 for now. Maintain HOLD.

Source: OCBC

[winston]

not vested

1H20 results in line; higher 5G penetration to drive mobile ARPU recovery

1H20 net profit declined by 0.5% y-o-y, in line with market expectations

Expect to achieve 15% 5G penetration to drive mobile ARPU recovery

Raising 5G base station net-adds to 300k with capex budget unchanged at Rmb180bn in FY20

Maintain HOLD despite attractive valuation and 5%+ yield, with TP unchanged at HK$51.0, due to stronger market competition in 5G era

Source: DBS

https://researchwise.dbsvresearch.com/R ... gehckfhgbh

[winston]

not vested

Brokers' Latest TPs, Views on CHINA MOBILE (00941.HK) Post Results (Table)

Brokers│Ratings│TPs (HK$)
BofA Securities│Buy│90
Morgan Stanley│Overweight│80
Credit Suisse│Outperform│79.5
Citigroup│Buy│76
JPMorgan│Overweight│73
Jefferies│Buy│71.08
Macquarie│Outperform│70.15
UBS│Buy│68
CICC│Outperform│65
Goldman Sachs│Neutral│56.8
-------------------

Brokers│Views
BofA Securities│ARPU growth driven by 5G; sales expense under control
Morgan Stanley│3Q result in-line, with rev growth
Credit Suisse│1-3Q service rev, NP growth solid; confident in keeping 6.5% div yield
Citigroup│3Q rev grows slightly; mobile rev growth may continue in 4Q
JPMorgan│Rev growth faster than expected; rev goal rather stable
Jefferies│QoQ result unsurprising; may lose mobile mkt shr to CHINA TELECOM (00728.HK)
Macquarie│Consolidated ARPU down YoY despite having 114M 5G users
UBS│5G user size tops 2020 goal; 3Q result positive
CICC│Well-oriented rev trend goes on; profit stays solid
Goldman Sachs│3Q rev in-line; EBITDA under stress

Source: AAStocks Financial News

[winston]

not vested

China Mobile (941 HK) - Stable earnings target achievable

China Mobile’s (CM; 941 HK) 3Q20 results were broadly in-line with expectations.

Service revenue growth accelerated to 3.6% YoY in 3Q20, outpacing the 1.9% YoY growth seen in 1H20, largely on the back of strong contribution from fixed-line service revenue.

Blended ARPU decline has narrowed from -3.6% in 1H20 to -2.6% in 9M20, in-line with a more benign regulatory backdrop and rational competitive environment.

EBITDA dropped 4.3% YoY to RMB 71.2b, which we attribute to higher network operation and support expenses with the expansion of 5G network and data centers.

Still, net profit grew 0.4% YoY to RMB 25.8b, largely due to the change in depreciable life of the group’s 4G wireless assets;

CM is guiding for stable net profits for 2020.

While valuations are inexpensive, we believe that peers could report faster service revenue growth than CM, which investors will be focused on, in our view. HOLD.

Source: OCBC

[winston]

not vested

C Suisse: US Shr Holding Withdrawal from CHINA MOBILE Represents 4.5% of Total, Fundamentals Unaffected

Credit Suisse mentioned in its report that U.S. President Donald Trump has recently signed an executive order that will prohibit U.S. individuals from holding shares in certain Chinese companies, such as China Mobile, China Unicom and China Telecom.

The broker's calculation concluded that total U.S. ownership in CHINA MOBILE (00941.HK) and ADR amounts to 4.5% of its total shares in issue.

However, given Credit Suisse's view that China Mobile, Unicom and China Telecom’s fundamentals and cash flows remained untouched, non-US funds and individuals may increase their weightings in the deemed cheap stocks.

Besides, if the incoming Biden administration reverses Trump's ban, such Chinese telecoms could brace for upside risk.

The broker kept Outperform on CHINA MOBILE at the target price $79.5.

Source: AAStocks Financial News

[winston]

not vested

China Mobile Is Facing Challenges – But Is Still a Solid Bet

by Zhu Peng

Experienced a price drop in the last month, the US-listed Chinese telco still worths investing in.

China Mobile has declared stable dividends and has the intention to sustain payouts – but cash needed for distribution exceeded free cash flows over the past three years.

The profitability of China Mobile is better than that of its competitors – but the difference seems to be shrinking.

5G network construction is not likely to put too much of a capital expenditure burden on China Mobile – meanwhile, 5G has turned out to be not as profitable as many predicted.

The telco is undervalued, per our DCF analysis.

In the last decade, China Mobile has sustained distributed dividends of around USD 2 per annum per share. The single exception happened in 2017. China Mobile declared a special dividend in 2017, proving its profitability and ability to generate healthy cash flow.

The dramatic drop of FCF in 2018 was mainly because of a rise in investment in Qingniu, UCloud, Xiaomi and other major deals.

The cash position has recovered from CNY 57 billion at the end of 2018 to CNY 261.2 billion in mid-2020.

Source: Equal Ocean

https://equalocean.com/analysis/2020092414844

[winston]

vested

China Mobile (CHL)

Because of the red ink recently splashed all over the charts, China Mobile is the riskiest name among this list of stocks for retirement. Frankly, I wouldn’t suggest jumping into CHL stock now because it’s akin to catching a falling knife.

Plus, let’s be real — China isn’t everyone’s cup of tea following the devastation of the coronavirus. Here’s another politically incorrect observation: we know this because among the restaurant categories that have been hit hard, Chinese restaurants have borne the brunt of the damage.

It would be incredibly naïve to assume that anti-China sentiment hasn’t at least contributed to some of the business disruption.

Still, at some point, Covid-19 will fade into the rear-view mirror, either through the vaccines that we’re about to distribute or perhaps through dumb luck. When it does, you’ll want to consider CHL stock for the long run.

Simply, the Asia-Pacific region is and will continue to be the relevant market. Therefore, not including viable Asian plays in your stocks for retirement would not be wise.

Further, with the Biden administration, we could be looking at the normalization of U.S.-China relations. That alone could help boost CHL.

Source: Investor Place

[winston]

vested

CHINA MOBILE Nov 5G Net Customer Addition Speeds Up MoM, Gains 18.59M Users/ Mth

CHINA MOBILE (00941.HK) announced that the total mobile customers for November 2020 reached 944 million, with a net loss of 2.634 million users monthly.

For 5G package, there were 147 million customers in November, with a net addition of 18.589 million customers monthly, accelerating from the 15.2-million addition in October.

Source: AAStocks Financial News