Citi: China Mobile Limited (00941) Q3 results slightly below expectations; maintain "Buy" rating with H-share target price of HK$97

Citi issued a research report stating that China Mobile Limited (00941)'s Q3 2026 results were slightly below expectations. The company's Q3 operating revenue was RMB242.3 billion, down 3.4% year-on-year, 1.0% below the bank's expectation and 2.4% below market consensus; net profit was RMB27.3 billion, down 12.4% year-on-year, 3.2% and 5.9% below the bank's and market expectations, respectively. Citi maintains its "Buy" rating with an H-share target price of HK$97 and an A-share (600941.SH) target price of RMB118. The bank noted that China Mobile Limited's Q3 EBITDA was RMB73.9 billion, 1.3% and 3.7% below the bank's and market expectations, respectively, with an EBITDA margin of 30.5%. Although mobile subscribers and 5G and broadband customer numbers continued to grow steadily, persistently weak telecommunications service revenue coupled with ongoing cost pressures limited margin expansion, resulting in overall results slightly below expectations. As of September 30, 2026, China Mobile Limited had 1.014 billion mobile customers, a net increase of 8.89 million in the first nine months, accelerating from a net increase of 5.88 million in the first half; of these, 5G network customers reached 702 million, up from 687 million at the end of June. Total wired broadband customers stood at 342 million, a net increase of 13.05 million in the first nine months. IoT card connections totaled 1.497 billion, a net increase of 15.03 million in the first nine months, though growth slowed compared with the first half, and total connections also declined slightly from the end of June.