Goldman Sachs raises target price of China Mobile Limited (00941) to HKD 94, rating "Neutral".

Goldman Sachs released a research report stating that China Mobile Limited (00941) reported a year-on-year increase of 1% in operating revenue in the first quarter of this year to 266.5 billion yuan (same below), which roughly met the bank's expectations, mainly benefiting from the growth of mobile customers and the expansion of computing and artificial intelligence (AI) services in the first quarter. However, the bank pointed out that China Mobile's EBITDA in the first quarter decreased by 5% year-on-year, falling short of the bank's expectations. Management emphasized that improving efficiency is one of the key points to enhance competitiveness. Based on the valuation model rolled over to 2027 and updated EBITDA forecasts, the H-share target price was raised from HK$88 to HK$94, maintaining a "neutral" rating. Although communication services face short-term pressures, Goldman Sachs remains positive about China Mobile's accelerated promotion of computing services, driven mainly by strong growth in intelligent computing services and expansion of cloud video user base. In addition, 5G base station deployments remain weak, with data from the Ministry of Industry and Information Technology showing only 49,000 new 5G base stations in March 2026, lower than expected, which is expected to create pressure on the company's short-term 5G user and ARPU expansion. However, the bank expects specialty services to drive ARPU growth, while the 6G cycle will support long-term growth. Goldman Sachs has raised China Mobile's net profit forecast for 2026 to 2027 by 2%, mainly reflecting growth in AI/computing service revenue, product portfolio upgrades, and improved operating efficiency driving EBITDA profit margin improvement.