[ET Net News Agency, 14 August 2020] HSBC Global Research raised its target price for
China Mobile (00941) to HK$73 from HK$69 and maintained its "buy" rating.
China Mobile noted the improvement in business and consumer activity in 2Q as lockdown
measures were eased. Wireless and new business trends were a little ahead of HSBC's
estimates - the research house raised its revenue forecasts in 2020/21 to reflect this.
A key variable in HSBC's forecasts is the network cost line, which grew faster than
expected in 1H. HSBC looks for clarity on whether growth in 5G usage revenue can offset
this. HSBC reduced its medium-term selling cost estimates on good discipline in the first
half. (KL)