Citi: China Mobile's third-quarter results slightly below expectations, maintain "Buy" rating.

Citi issued a research report stating that China Mobile's third-quarter operating revenue was RMB 242.3 billion, down 3.4% year-on-year, 1.0% below the bank's expectation and 2.4% below market consensus. Net profit was RMB 27.3 billion, down 12.4% year-on-year, 3.2% and 5.9% below the bank's and market expectations, respectively. EBITDA was RMB 73.9 billion, 1.3% and 3.7% below the bank's and market expectations, respectively, with an EBITDA margin of 30.5%. Although mobile subscribers and 5G and broadband customer numbers maintained steady growth, persistently weak telecommunications service revenue and continued cost pressures limited margin expansion, resulting in overall results slightly below expectations. Citi maintains its "Buy" rating on China Mobile, with an H-share target price of HK$97 and an A-share target price of RMB 118.