[ET Net News Agency, 20 March 2020] Citi Research lowered its target price for China
Mobile (CM)(00941) to HK$78 from HK$82 and maintained its "buy" rating.
The research house said CM's FY2019 net profit of Rmb106.6bn was slightly higher than
Citi's estimates. CM targets service revenue to maintain growth in FY2020, and profit to
maintain stable.
Its FY2019 payout ratio increased to 56% from 49%, with DPS up 1%. CM plans to maintain
stable DPS in FY2020. Citi believes reduced price competition, network quality and
customer care enhancement, and 5G opportunities could help with share price re-rating.
(KL)