JPMorgan has released a report maintaining an "Overweight" rating for China Mobile (00941, 600941.SH), setting a target price of HKD 110 for its H-shares and RMB 130 for its A-shares. The report indicates that China Mobile's service revenue rose by 0.8% year-over-year in Q3, while net profit increased by 1.9%, both figures falling short of market expectations by 3%. The growth rate also slowed from 6% in the previous quarter, primarily due to rising hardware sales costs. During this period, mobile users grew by 0.5% year-over-year to 1.01 billion; however, the average revenue per user (ARPU) declined by 3.2% to RMB 45.5. Mobile revenue decreased by 3% year-over-year, while fixed broadband revenue increased by 8%, driven by a 5% rise in broadband users. The group noted that revenue from its DICT (Digital, Information and Communication Technology) business has maintained a strong growth rate in the first three quarters of this year, with AI-related revenues experiencing rapid growth. Additionally, capital expenditures for the first three quarters amounted to RMB 117 billion, remaining flat year-over-year, while the group previously guided for a full-year capital expenditure reduction of 8% to RMB 151 billion. The report suggests that while traditional telecom service revenues may continue to face pressure in the short term and cloud revenues may take several quarters to regain momentum, the projected annual dividend yield of approximately 6.2% for China Mobile's H-shares remains attractive, and the group is expected to achieve positive profit growth for the year.