The Zhitong Finance App learned that Goldman Sachs released a research report stating that based on 3.4 times the 2024 included value (EV) and EBITDA, the target price for China Mobile (00941) was HK$82.5, and the rating was “buy.” The company has strong EBITDA growth prospects in the next few years. The bank sees the valuation as attractive, but its current valuation is still below the 15-year average.

According to the report, in an online conference, China Mobile's management maintained expectations for steady revenue and profit growth in 2024. EBITDA profit margins continued to decline due to increased R&D and marketing of corporate business (cloud, artificial intelligence, industrial Internet, etc.), but the slowdown in depreciation cost growth helped support the trend of stable net profit margins. Management expects the dividend payout ratio to increase from 71% to the target of 75% in 2026. Goldman Sachs believes that steady business growth and stable capital expenditure should help China Mobile support a gradual increase in dividends.