China Mobile 0941

[winston]

not vested

China Mobile (941 HK) - Strong growth in digital transformation business

China Mobile’s (CM; 941 HK) FY22 results met expectations.

Its operating revenue increased 10.5% YoY to CNY937.3b in FY22 while net profit grew 8.0% YoY to CNY125.5b.

A final dividend of HKD2.21 per share was declared, bringing full-year dividend per share (DPS) to HKD4.41 (+8.6% YoY), representing a dividend payout ratio of 67%.

Management reiterated the group’s target of a dividend payout ratio of 70% or above by 2023.

Customer market’s performance was stable while Home, Business and New markets registered double-digit growth in their revenue in FY22.

Digital transformation was the key growth driver of CM, contributing to 79.5% of incremental service revenue.

We expect to see further growth in this segment, supported by China’s digital economy development and rising digitalization demand.

We continue to like CM, given its payout visibility with attractive dividend yield of ~8%, strong balance sheet, and relatively defensiveness in the midst of market volatility.

After adjustments, we increase our fair value estimate from HKD72.20 to HK84.55. BUY.

Source: OCBC

[winston]

not vested

CHINA MOBILE(941)

Analysis：

The company mainly provides telecommunication and information related services in China.

For the first quarter ended 31 March 2023, the company`s revenue amounted to RMB 250.7 billion, increasing 10.3% YoY, of which revenue from telecommunications services amounted to RMB 209.8 billion, increasing 8.3% YoY,

Revenue from sales of products and others amounted to RMB 40.9 billion, increasing 21.9% YoY.

The profit attributable to equity shareholders of the company amounted to RMB 28.1 billion, increasing 9.5% YoY.

The total customers of Mobile Business amounted to 983 million, increasing 0.8% YoY, of which 5G package customers amounted to 689 million and 5G Network customers amounted to 363 million.

Average Revenue Per User per Month (ARPU) was RMB 47.9, increasing 9.1% YoY.

The company`s overall business has grown steadily.

As for the DICT (data technology, information technology and communication technology) business in the government and enterprise market, it maintained strong growth, revenue amounted to RMB 29.4 billion, increasing 23.9% YoY.

Recently, the prices of various mobile cloud services have been reduced to cope with the price wars in the mainland cloud computing industry.

However, this price reduction will not affect existing customers (usually large-scale enterprises) but! will attract more small and medium-sized enterprises to use related services, it is good for increasing market share and increasing related revenue of the company.

In addition, the US inter rate hike cycle is coming to an end, and the market expects that the risk-free interest rate will fall.

the company`s current dividend is around 6.8%, will be relatively more attractive, and it will have a positive impact on the valuation of utilities sector that including the company.

Strategy：
Buy-in Price: $64.35, Target Price: $69.00, Cut Loss Price: $60.90

Source: Phillips

[winston]

not vested

China Mobile hails 'hard-earned' 76b yuan

by Themis Qi

China Mobile's (0941) net profit for the first six months of this year climbed up 8.4 percent yearly to 76.2 billion yuan (HK$82.62 billion), partly boosted by the 20 percent revenue growth from digital transformation services.

The operator increased the interim dividend by 10.5 percent to HK$2.43 per share.

First-half operating revenue rose by 6.8 percent yearly to 530.7 billion yuan, to which the telecom services contributed 452.2 billion yuan, up by 6.1 percent over the same period.

Besides, revenue from digital transformation jumped 19.6 percent to 132.6 billion yuan, accounting for 29.3 percent of total telecom services income.

As of June, the total number of mobile customers reached 985 million, versus 970 million a year ago.

The mobile average revenue per unit inched up by 0.2 percent yearly to 52.4 yuan.

The number of 5G package subscribers rose by 41 percent to 722 million within one year.

Wireline broadband customers numbered 286 million, with 255 million household broadband users.

The household customer blended ARPU climbed up by 0.7 percent year-on-year to 43.3 yuan, much slower than a 4.6 percent increase one year ago.

Source: The Standard

https://www.thestandard.com.hk/section- ... '-76b-yuan

[winston]

not vested

China Mobile (941 HK) - Stable growth

China Mobile’s (CM; 941 HK) 1H23 results met our expectations.

Its operating revenue increased 6.8% year-on-year (YoY) to CNY530.7b in 1H23 while PATMI rose 8.4% YoY to CNY76.2b.

An interim dividend per share of HKD2.43 was declared, up 10.5% YoY, representing a dividend payout ratio of ~62%.

Management reiterated the group’s target of a dividend payout ratio of 70% or above in 2023.

Digital transformation’s revenue grew 19.6% YoY to CNY132.6b, contributing 29.3% of telecommunication services revenue (vs 25.6% in FY22).

It remained the key growth driver, contributing to 84.1% of incremental service revenue in 1H23.

Cloud revenue rose 80.5% YoY to CNY42.2b in 1H23, decelerating from a growth of 108.1% in 2022. However, the moderation in growth was more modest compared to China Telecom and China Unicom.

We believe CM is on track to achieve its cloud revenue target of CNY80b in 2023.

Management reiterated its guidance for 2023 and aims to achieve favourable revenue and net profit growth.

We continue to like CM, given its payout visibility with attractive dividend yield of ~8%, strong balance sheet, and relatively defensiveness in the midst of market volatility. BUY.

Source: OCBC

[winston]

not vested

Brokers│Views

UBS│Fundamentals and outlook solid

BOC International│Last quarter's results decent with higher ARPU for mobile business

CICC│Revenue growth for DICT business quickened; services revenue growth beat expectations

Jefferies│3Q results beat with enticing valuation

Huatai Securities│Results showed steady growth with ample development momentum for
government & enterprise segment

Morgan Stanley│3Q revenue & EBITDA growth beat

JPMorgan│3Q revenue & EBITDA growth robust; share price expected to have positive reaction to strong results

Nomura│3Q revenue growth ahead of forecast, but earnings fell short of expectations

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN