China Mobile's 2026-2028 Earnings May be Weighed by Tax, Other Challenges
Dow Jones
Sep 07
0225 GMT - China Mobile's earnings in 2026-2028 could continue to be weighed by value-added tax and moderating growth in its traditional business, say DBS Group Research's Andy Yu and Vanessa Lee in a note. This leads the analysts to cut their earnings estimates for the period by 4.0%-9.8%, implying profit contracting in 2026 before returning to growth in 2027-2028. Still, the Chinese mobile services provider's dividend commitment remains firm, they say, noting the management guides for its 2026 dividend payout ratio to be "stable to rising." DBS trims its target price to 96.00 Hong Kong dollars from HK$98.00 and retains a buy rating. Shares fall 0.7% to HK$79.10.
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