Investment Rating - The report maintains a "Buy-A" rating for China Mobile (600941.SH) [1] Core Views - The transition from old to new growth drivers is putting short-term pressure on growth, but the company maintains a high dividend value [1] - The company achieved a revenue of 543.8 billion yuan in H1 2025, a year-on-year decrease of 0.5%, with a net profit of 84.2 billion yuan, up 5.0% year-on-year [4][12] Summary by Sections C+H Segment - In the personal market, revenue was 244.7 billion yuan, down 4.1% year-on-year, with a total mobile customer base of 1.005 billion, net adding 560,000 users [5] - The number of 5G network customers reached 599 million, with a penetration rate of 59.6% [5] - The family market revenue grew by 7.4% year-on-year to 75 billion yuan, with 328 million total broadband customers [5] B+N Segment - The government and enterprise market revenue was 118.2 billion yuan, up 5.6% year-on-year, with a total of 34.84 million enterprise customers [7] - The mobile cloud revenue reached 56.1 billion yuan, up 11.3% year-on-year, and 5G vertical industry applications are leading the market [7] Capital Expenditure and Growth - The company completed capital expenditures of 58.4 billion yuan in H1 2025, with 25.8 billion yuan invested in 5G networks [10] - The company aims for a capital expenditure of 151.2 billion yuan for the full year, a decrease of 7.8% year-on-year [10] Dividend and Profitability - The company paid a dividend of 2.75 HKD per share in H1 2025, an increase of 5.8% year-on-year [11] - The forecast for net profit from 2025 to 2027 is 146.3 billion yuan, 154.9 billion yuan, and 163.9 billion yuan, respectively, with a corresponding EPS of 6.78, 7.18, and 7.59 yuan [12][14]

Investment Rating - The report maintains a "Buy-A" rating for China Mobile (600941.SH) [1] Core Views - In 2024, China Mobile achieved revenue of 1,040.8 billion yuan, a year-on-year increase of 3.1%, with a net profit of 138.4 billion yuan, up 5.0% year-on-year [2][3] - The company is focusing on new business areas such as 5.5G, AI, and reasoning computing, which are expected to drive future growth [10] - The report anticipates steady growth in the company's overall business, with a projected net profit of 147.8 billion yuan in 2025, reflecting a growth rate of 6.8% [12] Summary by Sections Personal Market - As of December 31, 2024, the total number of mobile customers reached 1.004 billion, with 5G network customers increasing to 552 million, a penetration rate of 55.0% [3] - The personal mobile cloud revenue grew by 12.6% year-on-year to 8.9 billion yuan, while the mobile ARPU decreased slightly by 0.8 yuan to 48.5 yuan [3][4] Family Market - The number of broadband customers reached 315 million, with gigabit broadband customers increasing by 25.0% to 99 million [4] - The family customer ARPU increased by 0.7 yuan to 43.8 yuan, indicating a positive trend in the family market [4] Business and New Markets - The enterprise market revenue reached 209.1 billion yuan, up 8.8% year-on-year, with a significant increase in mobile cloud revenue, which surpassed 100 billion yuan, growing by 20.4% [6][9] - Emerging markets, including international business and digital content, saw revenue growth of 8.7% year-on-year, with international business revenue at 22.8 billion yuan [9] Capital Expenditure - Capital expenditure for 2024 was 164 billion yuan, a decrease of 9.0% year-on-year, with a focus on new areas such as 5.5G and AI [10] - The company plans to invest 98 billion yuan in 5G-A in 2025, reflecting a significant increase of 227% [10] Dividend Policy - The company plans to increase its dividend payout, with a total dividend of 5.09 HKD per share for 2024, a year-on-year increase of 5.4% [11] Financial Forecasts - The report forecasts net profits of 147.8 billion yuan, 156.2 billion yuan, and 164.5 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 6.85, 7.24, and 7.62 yuan [12][14]

Investment Rating - The report maintains a "Buy-A" rating for China Telecom (601728.SH) [2] Core Views - The company achieved a revenue of 523.57 billion yuan in 2024, a year-on-year increase of 3.1%, with service revenue at 482.03 billion yuan, up 3.7% [4] - The company is focusing on expanding its capabilities in emerging fields, particularly in AI and quantum technologies, which are expected to drive future growth [5][10] Summary by Sections Market Performance - As of April 11, 2025, the closing price was 7.93 yuan, with a total market capitalization of 615.60 billion yuan [3] Financial Performance - In 2024, the company reported an EBITDA of 140.85 billion yuan, a 2.9% increase year-on-year, and a net profit attributable to shareholders of 33.01 billion yuan, up 8.4% [4] - The earnings per share (EPS) for 2024 was 0.36 yuan, reflecting an 8.4% increase [4] Business Segments - Mobile communication service revenue reached 202.5 billion yuan, a 3.5% increase, with mobile value-added services growing by 16.1% [5] - Fixed-line and smart home service revenue was 125.7 billion yuan, up 2.1%, with smart home business revenue increasing by 16.8% [6] - The digital industry revenue reached 146.6 billion yuan, a 5.5% increase, with Tianyi Cloud revenue at 113.9 billion yuan, up 17.1% [8] Investment and Future Outlook - The company plans to invest 93.5 billion yuan in capital expenditures for 2024, a decrease of 5.4%, while maintaining a focus on computing power investments, which are expected to increase by 22% [10] - The company aims for steady growth in revenue, EBITDA, and net profit through 2025, with a projected net profit of 34.56 billion yuan [11]