Ge Long Hui·2025-08-11 07:21Core Insights - China Mobile reported total revenue of 280 billion yuan for Q2, a year-on-year decline of 1% [1] - Communication service revenue was 244.6 billion yuan, showing a slight year-on-year increase of 0.1% [1] - Net profit reached 53.6 billion yuan, reflecting a year-on-year growth of 6% [1] Revenue Analysis - Total revenue fell slightly short of market expectations, primarily due to a larger-than-expected decline in mobile phone sales [1] - The net profit exceeded expectations, attributed to effective control of network operating costs and a greater-than-expected reduction in depreciation expenses [1] Dividend Information - The interim dividend increased to 2.75 HKD per share, up from 2.6 HKD in the same period last year [1] Future Projections - Due to the intensified decline in mobile phone sales, revenue forecasts for China Mobile's A and H shares for 2025 and 2026 were lowered by 1.4% and 2%, respectively, to 1,047.9 billion yuan and 1,062.7 billion yuan [1] - Net profit forecasts remain unchanged, supported by a decrease in capital expenditures leading to stable depreciation and amortization costs, along with strict control of network operating costs [1] Ratings and Target Prices - The company maintains a "Outperform" rating for A shares with a target price of 127 yuan, corresponding to projected P/E ratios of 18.9 and 18 for 2025 and 2026, respectively [1] - The H shares also retain an "Outperform" rating with a target price of 90.8 HKD [1]