2024-04-24 07:00Investment Rating - The report maintains a "Recommended" rating for China Mobile [2]. Core Views - China Mobile's Q1 2024 performance report shows revenue of CNY 263.71 billion, a 5.17% increase, with main business revenue at CNY 219.3 billion, up 4.5%. EBITDA is CNY 78 billion, a 2.3% decline, and net profit attributable to shareholders is CNY 29.61 billion, up 5.49% [2]. - The construction of intelligent computing centers is accelerating, with AI empowering industry development and domestic computing power advancing rapidly [2]. - In 2024, China Mobile plans to procure 7,994 AI servers and 60 white-box switches, indicating a strong push in computing network infrastructure [2]. - The company expects capital expenditures of approximately CNY 173 billion in 2024, with investments in computing power reaching CNY 47.5 billion, a growth of 21.5% [2]. - The report forecasts net profit attributable to shareholders for 2024-2026 to be CNY 140.54 billion, CNY 150.01 billion, and CNY 160.09 billion, respectively, with corresponding EPS of CNY 6.57, CNY 7.01, and CNY 7.48 [3]. Financial Summary - For 2024, the expected operating revenue is CNY 1,087.53 billion, with a revenue growth rate of 7.75% [3]. - The projected net profit for 2024 is CNY 140.54 billion, reflecting a profit growth rate of 6.66% [3]. - The gross profit margin is expected to remain stable at around 28.25% for the next few years [3]. - The report indicates a PE ratio of 15.94 for 2024, decreasing to 13.99 by 2026 [3].