智通财经网·2025-10-22 08:21Core Viewpoint - Morgan Stanley maintains an "Overweight" rating on China Mobile, with a target price of HKD 110 for H-shares and CNY 130 for A-shares [1] Financial Performance - In Q3, China Mobile's service revenue increased by 0.8% year-on-year, while net profit rose by 1.9%, which is 3% lower than market expectations [1] - The growth rate has slowed from 6% in the previous quarter, attributed to rising hardware sales costs [1] - Mobile users grew by 0.5% year-on-year to 1.01 billion, but average revenue per user (ARPU) declined by 3.2% to CNY 45.5 [1] - Mobile revenue decreased by 3%, while fixed broadband revenue increased by 8%, supported by a 5% rise in broadband users [1] Business Segments - The DICT business revenue has maintained a good growth rate in the first three quarters of the year, with AI direct revenue experiencing very rapid growth [1] Capital Expenditure - Capital expenditure for the first three quarters was CNY 117 billion, remaining flat year-on-year, while the company previously guided for a full-year capital expenditure decrease of 8% to CNY 151 billion [1] Dividend and Profit Outlook - Despite potential short-term pressure on traditional telecom service revenue and a need for several quarters for cloud revenue to accelerate, the annual dividend yield for China Mobile's H-shares is approximately 6.2%, which remains attractive [1] - The company is expected to achieve positive growth in annual profits [1]