DBS raises target price for China Mobile (00941.HK) to HK$110, maintains "buy" rating.

According to Zhitong Finance APP, DBS released a research report stating that it is expected that China Mobile (00941.HK) will see a year-on-year increase of 3% and 4% in revenue and profit for the 2025 fiscal year, respectively, driven by strong growth in its digital transformation business. The expected dividend per share is further increased, with the dividend payout ratio expected to increase from 73% in the 2024 fiscal year to 75% in the 2026 fiscal year. With the expansion of cloud revenue driving growth, the annual compound growth rate of profit from 2024 to 2027 is expected to be 6%. Due to its defensive characteristics and attractive yield of around 6%, the "buy" rating is maintained, with the target price raised from 98 Hong Kong dollars to 110 Hong Kong dollars, equivalent to a forecasted P/E ratio of 15 times this year.