not vested
Oct 24, 2016
<Research Report>Deutsche Lifts CHINA MOBILE (00941.HK) Target to $105; Rated Hold
Deutsche Bank, in its report, said the 3Q16 net profit of CHINA MOBILE (00941.HK) declined only 2.3% yearly to RMB27.5 billion, showing solid momentum despite inter-provincial roaming and long-distance charges rolling off.
To achieve FY16 guidance of flat-at-best net profit, a 4Q net profit of only RMB7.1 billion is required. That could be achieved even with quarterly decline, and the 4Q result will usually increase according to past experience, so the broker believed that the full-year result could be slightly above estimates.
The broker lifted the target price from $100 to $105, with rating Hold.
The broker lifted the earnings forecast on China Mobile by 3% in 2016 and 2% in 2017, expecting RMB23 billion net profit in 4Q16, which would represent the worst quarter on 5.5 years of records.
However, if TowerCo data-rollover gains were not calculated, 4Q15 would be worse, so Deutsche Bank was cautious optimistic on its higher forecast.
Source: AAStocks Financial News