[ET Net News Agency, 24 October 2018] HSBC Global Research lowered its target price for
China Mobile (00941) to HK$88 from HK$90, and maintained its "buy" rating.
The research house said China Mobile's service revenue declined 3% in 3Q as a result of
the cancelation of data roaming from 1 July. 4G subs growth remains robust (+18.4m in 3Q)
lifting the 4G penetration rate to nearly 76%.
HSBC believes unlimited and high capacity data plans launched in 3Q will help with
customer acquisition but mobile ARPU pressure is likely to extend into 4Q. 3Q EBITDA was
RMB68.2bn, down 3.4% y-y but margins remained flat suggesting good cost savings in the
quarter. (KL)