Citi has released a research report noting that China Mobile Limited (00941) reported third-quarter 2026 results that came in slightly below expectations.
In the third quarter, the company posted operating revenue of RMB 242.3 billion, down 3.4% year-on-year, which was 1.0% below the bank's forecast and 2.4% below market consensus.
Net profit came in at RMB 27.3 billion, down 12.4% year-on-year, missing the bank's estimate by 3.2% and market consensus by 5.9%.
Citi maintained its Buy rating, with an H-share target price of HKD 97, and assigned an A-share (600941.SH) target price of RMB 118.
The bank noted that China Mobile Limited's third-quarter EBITDA was RMB 73.9 billion, 1.3% below the bank's forecast and 3.7% below market consensus, with an EBITDA margin of 30.5%.
Although mobile subscribers as well as 5G and broadband customer counts continued to grow steadily, persistently weak telecommunications service revenue, combined with ongoing cost pressures, constrained margin expansion, leaving 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.
Wireline broadband customers totaled 342 million, with a net increase of 13.05 million in the first nine months.
IoT card connections stood at 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 edged down slightly from the end of June.
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