Great Wall Securities·2025-05-08 13:52Investment Rating - The report maintains a "Buy" rating for China Mobile, expecting the stock price to outperform the industry index by more than 15% in the next six months [4][15]. Core Views - China Mobile has demonstrated strong control over expenses, leading to impressive growth in non-recurring net profit. The company is expected to maintain its traditional business base while leveraging breakthroughs in government and enterprise sectors to drive growth [3][4]. - The company reported stable revenue in Q1 2025, with operating income at 263.8 billion yuan, flat year-on-year, and a net profit of 30.6 billion yuan, up 3.5% year-on-year. The non-recurring net profit grew by 10.8% year-on-year to 28.9 billion yuan [1][2]. Financial Performance Summary - Revenue Growth: Projected revenues for 2025-2027 are 1,084.47 billion yuan, 1,134.36 billion yuan, and 1,189.94 billion yuan, respectively, with growth rates of 4.2%, 4.6%, and 4.9% [1][3]. - Net Profit: Expected net profits for the same period are 146.06 billion yuan, 154.68 billion yuan, and 164.41 billion yuan, with year-on-year growth rates of 5.6%, 5.9%, and 6.3% [1][3]. - Earnings Per Share (EPS): EPS is projected to be 6.77 yuan, 7.17 yuan, and 7.62 yuan for 2025, 2026, and 2027, respectively [1][3]. - Valuation Ratios: The price-to-earnings (P/E) ratio is expected to decrease from 17.5 in 2023 to 14.0 by 2027, while the price-to-book (P/B) ratio is projected to decline from 1.8 to 1.5 over the same period [1][3]. Business Segments Summary - Mobile Services: As of March 31, 2025, the total number of mobile customers reached 1.003 billion, with 5G customers at 578 million. The mobile average revenue per user (ARPU) was 46.9 yuan, and the data usage per user reached 16.1GB, up 8.0% year-on-year [2]. - Fixed-line Services: The company reported 320 million broadband customers, with a quarterly net increase of 5.48 million. The comprehensive ARPU for family customers was 40.8 yuan, reflecting a 2.3% year-on-year increase [2]. - Government and Enterprise Business: The revenue share from government and enterprise services has increased, driven by initiatives in AI and digital information technology [2].