UBS raises its target as China Mobile stock faces earnings pressure

Published on 09/25/2026 at 12:18 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

China Mobile stock posted RMB 538.0 billion in first-half revenue, down 1.1 percent year over year. Free cash flow rose 111.6 percent to RMB 53.9 billion.

China Mobile, HK0941009539, Illustration mit AI erstellt.

China Mobile stock (ISIN HK0941009539) stood at HKD 78.45 on HKEX on September 25, 2026, down 0.57 percent from HKD 78.90. The share price was 11.76 percent below its 52-week high of HKD 88.90, while trading volume reached 8,699,390 shares.

UBS lifts its target

Futunn reports that UBS upgraded China Mobile from Neutral to Buy and raised its target from HKD 83 to HKD 95. The new target stands 21.1 percent above the September 25 price, giving the rating change a clear valuation angle.

UBS cited dividend risks already priced into telecom stocks and argued that artificial intelligence investments could improve business structures and return on invested capital. The assessment matters because the company is moving beyond traditional connectivity while its share price remains below the yearly high.

Revenue pressure meets cash flow

For the six months ended June 30, 2026, China Mobile reported operating revenue of RMB 538.0 billion, down 1.1 percent year over year, and profit attributable to shareholders of RMB 78.9 billion, down 6.3 percent, according to Moomoo.

The mix contains a stronger counterpoint. Computing power services revenue rose 14.0 percent year over year to RMB 52.9 billion, while free cash flow increased 111.6 percent to RMB 53.9 billion. The interim dividend was RMB 2.51 per share, equivalent to HKD 2.9003, up 5.5 percent in Hong Kong dollar terms.

DBS flags earnings risks

TradingView reported that DBS cut its target from HKD 98 to HKD 96 and retained a Buy rating. DBS also reduced its 2026 to 2028 earnings estimates by 4.0 percent to 9.8 percent, citing value-added tax pressure and slower traditional business growth.

Stock stays below its yearly high

China Mobile stock stood at HKD 78.45 on HKEX on September 25, 2026, with a daily range of HKD 78.15 to HKD 78.65. The combination of falling headline revenue and expanding computing-power cash generation leaves dividend capacity and AI returns as the key valuation variables.