Standard Chartered: Raising China Mobile's target price to 110 Hong Kong dollars, dividend yield attracts and has defensive characteristics.

DBS Bank released a report stating that, driven by strong digital transformation business, it is expected that China Mobile's revenue and profit for the 2025 fiscal year will increase by 3% and 4% respectively. The expected dividend per share will be further increased, with the payout ratio expected to increase from 73% in the 2024 fiscal year to 75% in the 2026 fiscal year. With the expansion of cloud revenue, the bank expects an average annual compound growth rate of 6% for profit from the fiscal year 2024 to 2027. Due to its defensive nature and attractive yield of about 6%, the bank maintains a "buy" rating with a target price raised from 98 Hong Kong dollars to 110 Hong Kong dollars, equivalent to a forecast price-earnings ratio of 15 times for this year.