Morgan Stanley: China Mobile's Q3 Net Profit Misses Expectations

Deep News
10/23

Morgan Stanley has released a report indicating that China Mobile (00941) generated service revenue of 216 billion RMB in the third quarter, reflecting a year-on-year growth of 0.8%, which slightly surpasses the bank's expectation by 0.7 percentage points. However, EBITDA declined by 1.7% year-on-year to 79 billion RMB, falling short of the bank's forecast by 2.8 percentage points, primarily due to higher-than-expected operating expenses. The report notes that China Mobile's service profit margin decreased by 0.9 percentage points year-on-year to 36.8%. The net profit grew by 1.4% year-on-year to 31 billion RMB, which was 1.2% below the bank's expectations, partially offset by stronger non-recurring items. The bank maintains an "Overweight" rating on China Mobile with a target price of HKD 90.

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