According to the report released by Furui, China Mobile (00941) is maintained at a “buy” rating with a target price of HK$101.39, down from HK$101.69. The company distributed a interim dividend of 2.6 yuan per share, up 7% YoY, equivalent to a dividend yield of 63.3%, compared to the same period last year at 62.5%. Management promised that the dividend payout ratio for the full year will be higher than last year's 71%. The bank estimates that the dividend payout rate for this year will reach 72%, and the company also said last year that it will strive to achieve a dividend payout ratio of 75% within three years.

The bank stated that the company's second-quarter profit exceeded expectations, and believed that although the company's second-quarter revenue growth slowed down, it was offset by the control of operating expenses and non-operating projects, which was expected. The bank pointed out that the company's capital expenditures for the first half of the year were RMB 64 billion, a YoY decrease of 21%. However, management still maintains its full-year capital expenditure budget of RMB 173 billion and the proportion of capital expenditures to income is less than 20%. The bank believes that if demand and revenue in the second half of the year are lower than expected, capital expenditures will also be lower than budgeted.