DBS cuts target for China Mobile stock from HKD 98.00 to HKD 96.00

Published on 10/02/2026 at 12:01 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First-half revenue fell 1.10 percent to CNY 538.0 billion. DBS still rates China Mobile stock Buy after its September 4 note on valuation.

China Mobile, HK0941009539, Illustration mit AI erstellt.

DBS cut its China Mobile target from HKD 98.00 to HKD 96.00 on September 4, 2026, while retaining a Buy rating, according to DBS. The revision puts valuation and dividend support against a weaker reported earnings picture for the first half of 2026.

Target cut meets profit pressure

China Mobile reported CNY 538.0 billion in operating revenue for the first half of 2026, down 1.10 percent year over year, while net profit fell 6.30 percent to CNY 78.9 billion, according to Yahoo Finance. The same results presentation said free cash flow rose 111.60 percent year over year to CNY 53.9 billion, creating a sharper contrast between accounting profit and cash generation.

DBS said its revised target reflected 4.00 percent and 8.00 percent cuts to its 2026 and 2027 earnings forecasts, while keeping the valuation multiple at 14 times forward earnings, according to DBS. The bank also pointed to a dividend yield of about 7.00 percent in its September 4 assessment.

Computing becomes the growth counterweight

The operating mix offers a more constructive counterpoint. Computing services revenue reached CNY 52.9 billion in the first half of 2026, up 14.00 percent year over year, while AI services revenue reached CNY 49.3 billion, up 0.90 percent, according to Yahoo Finance. International market revenue rose 30.10 percent to CNY 18.2 billion, showing where expansion is strongest while traditional communications revenue remains under pressure.

China Mobile also declared an interim dividend of CNY 2.51 per share for 2026, up 0.30 percent year over year, while management indicated that the full-year payout ratio should remain stable to rising. That combination helps explain why DBS retained its Buy rating even as it reduced earnings assumptions.

Hong Kong listing sets the reference range

China Mobile's investor-relations page identifies the Stock Exchange of Hong Kong as the listing venue and 941 as the stock code, while also listing Shanghai stock code 600941. Investing.com identifies the same company with ISIN HK0941009539 and reported a 52-week range of HKD 75.55 to HKD 88.90 on October 2, 2026.

Investing.com also reported a market capitalization of HKD 1.7 trillion on October 2, 2026, and listed October 21, 2026, as the next earnings date. For investors, the central tension is clear: the first-half revenue decline and DBS target cut contrast with faster-growing computing, AI and international businesses.