Citibank: China Mobile (00941)'s third-quarter results are slightly lower than expected to maintain a “buy” rating, and the target price for H shares is HK$97

The Zhitong Finance App learned that Citibank released a research report saying that China Mobile (00941)'s results for the third quarter of 2026 fell slightly short of expectations. The company's third-quarter revenue was RMB 242.3 billion, down 3.4% year on year, 1.0% lower than the bank's forecast and 2.4% lower than market expectations; net profit was RMB 27.3 billion, down 12.4% year on year, 3.2% and 5.9% lower than the bank's and market expectations, respectively. Citi maintains a “buy” rating, with a target price of HK$97 for H shares and a target price of RMB 118 for A shares (600941.SH).

According to the bank, China Mobile's EBITDA for the third quarter was 73.9 billion yuan, 1.3% and 3.7% lower than the bank's and market expectations, respectively, and the EBITDA profit margin was 30.5%. Although the number of mobile users, 5G and broadband business customers continued to grow steadily, telecom business revenue continued to weaken, and continued cost pressure limited profit margin expansion, and overall performance fell slightly short of expectations.

As of September 30, 2026, China Mobile's mobile customers reached 1,014 million, a net increase of 8.89 million in the first nine months, which is faster than the net increase of 5.88 million in the first half of the year; of these, 702 million 5G network customers reached, up from 687 million at the end of June. The total number of cable broadband customers was 342 million, a net increase of 13.05 million in the first nine months. The number of IoT card connections was 1,497 million, a net increase of 15.03 million in the first nine months, but the growth rate was slower than in the first half of the year, and the total number of connections also declined slightly from the end of June.