On October 23rd, Guolonghui | htsc issued a research report stating that China Mobile made steady progress in the third quarter. Among them, operating income increased by 2% year-on-year; net profit rose by 5.1%. The company's net profit for the first three quarters reached 30.7 billion yuan, in line with expectations. htsc stated that China Mobile's profitability further improved, with a year-on-year increase of 0.1 percentage points in ROE for the first three quarters, a 2.06 percentage point increase in gross margin, and a 0.4 percentage point increase in net profit margin. In terms of cash flow, as of the end of the third quarter, the company's net operating cash flow was 224.1 billion yuan, an improvement from 131.4 billion yuan at the end of the second quarter. With the gradual receipt of payments from government and enterprise projects in the fourth quarter, the company's cash flow situation is expected to gradually improve. In terms of dividends, the company continues to increase shareholder returns, and plans to further increase the dividend payout ratio to 75% within the next three years starting from this year, making the dividend return still highly attractive. The bank is bullish on the group's development potential, expecting its net income for 2024 to 2026 to be 138.4 billion, 145.2 billion, and 152.2 billion yuan, respectively. The bank is bullish on the group's resilience and competitiveness as a leading global telecommunications operator. In the long run, digital business will continue to inject new growth momentum into the company. Maintaining a "buy" rating with a target price of HK$85.3.