UBS: Raises target price for China Mobile to HKD 83, maintains "Neutral" rating.

UBS published a report stating that China Mobile's service revenue in the second quarter fell 4.8% year-on-year to 233 billion yuan, EBITDA dropped 7.9% year-on-year to 97 billion yuan, and net profit decreased 7.5% year-on-year to 50 billion yuan, which is 1% to 9% lower than UBS and market expectations, mainly impacted by adjustments in value-added tax and macroeconomic headwinds. Cloud and AI-related businesses performed strongly. Revenue from data centers increased 13.2% year-on-year, while cloud computing service revenue rose 18% year-on-year. The cumulative AIDC contract capacity reached 7GW, of which 5GW was added in the first half of the year. The interim dividend is 2.51 yuan per share, unchanged year-on-year. UBS believes this indicates stability in the annual dividend. UBS slightly adjusted its forecasts and extended its valuation model by six months, raising the target price from 81 HKD to 83 HKD, maintaining a neutral rating, believing that the current price corresponds to a forecast dividend yield of about 6% to 7% for 2026, which could provide support for the stock price.