CICC: China Mobile's strong demand leads to year-on-year growth in CAPEX, maintaining the "outperform the industry" rating for A and H shares.

According to the research report by CICC, China Mobile's revenue for the first half of 2026 has met expectations, while profit has exceeded expectations. The basic communication business is under pressure, the growth of computing power services is evident, and smart services remain basically stable. New businesses such as token operations and computing power services align with strong market demand and are developing rapidly. Alongside the development of these new businesses, capital expenditure in the first half of the year has increased compared to the previous year, with a significant tilt towards computing power. It is believed that the demand for computing power from customers is robust, and the company's increase in capital expenditure and structural changes align with business development. Looking ahead for the year, on one hand, the company may invest moderately in data centers and computing power resources in advance; on the other hand, considering that the communication network resources can still meet the network demand arising from increased user traffic, the overall capital expenditure amount is manageable. The company values shareholder returns, and despite pressure from declining net profits, the dividend per share has still increased. Using the sum-of-the-parts valuation method, the A-shares maintain an "outperform industry" rating with a target price of 118 yuan, while the Hong Kong shares maintain an "outperform industry" rating with a target price of 102 Hong Kong dollars.