[ET Net News Agency, 14 August 2020] Citi Research trimmed its target price for China
Mobile (CM)(00941) to HK$76 from HK$78 and maintained its "buy" rating.
The research house said CM's 1H net profit of Rmb55.8bn (down 0.5%) was in line with
Citi estimates. Positive is mobile service revenue growth recovery at 0.6% growth in 2Q
and free cash flow growth of 44.1% in 1H.
CM maintained its FY2020 total capex guidance unchanged at Rmb179.8bn (up 8.4%). CM
deployed 188k 5G BTS by Jun20, with c.138k 5G BTS adds in 1H20. Citi maintained its FY2020
earnings forecast largely unchanged and increased its FY2021-22 earnings estimates by 1-2%
each year, mainly on lower D&A cost assumptions. (KL)