According to the CICC research report, China Mobile's 1H26 revenue was in line with expectations, and profits were better than expected. 1H26 basic communication services are under pressure, computing power services have increased significantly, and intelligent services are basically stable. New businesses such as token management and computing power business meet strong market demand and are developing rapidly. Along with the development of new businesses, capital expenditure increased year-on-year in the first half of the year, and the structure was significantly skewed towards computing power. We believe that customer demand for computing power is strong, and that the company's capital expenditure increases and structural changes are in line with business development; looking ahead to the whole year, on the one hand, the company may invest moderately in data centers and computing power resources; on the other hand, considering that communication network resources can still carry network demand after user traffic increases, the amount of capital expenditure is generally manageable. The company attaches importance to shareholder returns, and dividends per share are still rising under downward pressure on net profit. Using the SOTP valuation method, A-shares maintain a “outperforming the industry” rating and a target price of 118 yuan, while Hong Kong stocks maintain a “outperforming industry” rating and a target price of HK$102.

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