[ET Net News Agency, 11 September 2018] HSBC Global Research resumed coverage on China
Mobil (00941) with "buy" rating, and a higher target price of HK$90 (from HK$82).
The research house said Mobile stock offers a yield of 4.9%, and its Chairman has a more
shareholder-friendly approach than his predecessors. HSBC modeled a 2ppt increase in the
payout ratio to 50% in 2018.
It noted that Mobile had RMB382bn cash balance and no debt on its balance sheet as of 30
June. Its cash reserves provide a good buffer for capex hike from the 5G rollout.
HSBC reduced its sales estimates slightly, reflecting the impact of the move to IFRS-15.
(KL)