China Mobile HY profit, revenue fall on VAT policy, market headwinds

China Mobile

13/08/2026 10:03

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Overview
Telecom provider's half-year revenue fell 1.1% yr/yr amid external headwinds
Net income attributable to shareholders declined 6.3% yr/yr for the half-year
Company cited VAT policy adjustments and market environment as factors impacting results

Outlook
Company describes shareholder return outlook as stable-to-rising
Company sees continued business pressure in communications services due to market and policy shifts
Company expects computing and AI services to drive incremental revenue growth

Result Drivers
VAT POLICY AND MARKET CONDITIONS - Co said VAT policy adjustments and market environment weighed on results
COMMUNICATIONS REVENUE DECLINE - Communications services revenue fell 5.7% yr/yr, offsetting gains in other segments
COMPUTING AND AI SERVICES GROWTH - Revenue from computing and AI services rose, contributing to incremental growth

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 538 bln
 
H1 Net Income Attributable
 
RMB 78.93 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the integrated telecommunications services peer group is "buy"
Wall Street's median 12-month price target for China Mobile Ltd is HK$96.00, about 17.5% above its August 12 closing price of HK$81.70
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Aug 11 - China Tower's interim revenue falls 1.8%, profit rises 30%
Aug 11 - China's AsiaInfo Technologies H1 revenue falls on telecom investment cuts 
Aug 10 - Hong Kong's Hutchison Telecom H1 profit rises on disposal of Macau operations

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)