Guolian Securities·2024-04-23 08:30Investment Rating - The report maintains a "Buy" rating for China Mobile with a target price of 118.12 CNY, based on a 2024 P/E ratio of 18 times [14][15]. Core Insights - China Mobile's Q1 2024 revenue reached 263.7 billion CNY, a year-on-year increase of 5.2%, with a net profit of 29.6 billion CNY, up 5.5% year-on-year [13]. - The company is focusing on expanding its personal market and enhancing its smart home services, achieving a 49% penetration rate for its 5G network [3][20]. - The mobile ARPU (Average Revenue Per User) increased by 6.7% year-on-year to 47.9 CNY per user per month [13]. Financial Data and Valuation - Revenue projections for 2024-2026 are 1,069.78 billion CNY, 1,131.24 billion CNY, and 1,190.08 billion CNY, with growth rates of 5.99%, 5.74%, and 5.20% respectively [5][14]. - The net profit for the same period is expected to be 140.43 billion CNY, 149.84 billion CNY, and 159.04 billion CNY, with growth rates of 6.57%, 6.70%, and 6.14% respectively [5][14]. - The company's EPS (Earnings Per Share) is projected to be 6.56 CNY, 7.00 CNY, and 7.43 CNY for 2024, 2025, and 2026 respectively [5][14]. - The company's current P/E ratio is 17.2, with a projected decrease to 14.3 by 2026 [5][14]. Key Performance Metrics - As of Q1 2024, the gross margin was 26.17%, an increase of 1.71 percentage points year-on-year, while the net margin was 11.24%, up 0.04 percentage points year-on-year [4]. - The company reported a total of 996 million mobile customers, with a net addition of 4.63 million in the quarter [13]. - The total number of broadband customers reached 305 million, with a net addition of 6.83 million in the quarter [20].