Tuna Terminal

Hong Kong · HKEX · 00941

China Mobile (00941) stock analysis: valuation and financials

电讯

HK$80.45 +0.6% Price as of Oct 13, 2026

Bottom line

Dominant scale, net cash CNY304.4B and a 6.7% yield, but revenue is flat (+0.9%), free cash flow halved and ROIC fading; cheap at 11.4x earnings — value hinges on cash conversion.

Market cap
HK$1.7T
P/E
11.4x
EV/Sales
1.1x
FCF yield
7.8%
Dividend yield
6.7%
52-week range
HK$76.15 – HK$88.85

Research as of Oct 14, 2026

Business quality scorecard

0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.

How it makes money

Retail and enterprise customers pay monthly tariffs and usage fees for mobile, broadband and IoT connectivity plus cloud and project fees for computing and smart services; connectivity is the revenue base (FY2025 revenue CNY1.05T, +0.9% yoy) while cloud/AI computing is the growth engine, and segment profit mix is not disclosed.

Financials by year

FY2021Jan–Dec 2021FY2022Jan–Dec 2022FY2023Jan–Dec 2023FY2024Jan–Dec 2024FY2025Jan–Dec 2025
Revenue¥848.3B¥937.3B¥1.0T¥1.0T¥1.1T
Revenue growth+10.4%+10.5%+7.7%+3.1%+0.9%
Gross margin62.1%59.8%59.2%58.4%58.2%
Operating margin13.9%13.8%13.3%13.7%14.2%
Net income¥116.1B¥125.5B¥131.8B¥138.4B¥137.1B
Free cash flow¥107.5B¥91.2B¥122.5B¥159.8B¥76.0B
FCF margin12.7%9.7%12.1%15.4%7.2%

Amounts in CNY · What is free cash flow?

Margins Gross margin 58.23% in FY2025 vs 58.44% FY2024 (TTM 57.03%, -21bps) while operating margin improved to 14.18% from 13.70% (TTM 13.08%). Revenue growth stalled at +0.9% and turned -3.0% y/y in Q2 FY2026; quarterly gross margin swings widely, 51.4% in Q4 FY2025 to 61.9% in Q2 FY2026.

Balance sheet Leverage · Net cash

Cash & short-term investments
¥331.7B
Total debt
¥27.3B
Net cash
¥304.4B
Interest coverage
37.0x
Current ratio
0.9x

As of Jun 30, 2026 · Amounts in CNY · How to read a balance sheet

Management and track record

Valuation range

BearHK$72.00-10.5% vs price
BaseHK$125.46+56.0% vs price
BullHK$219.21+172.5% vs price

Implied value per share · Price when researched: HK$80.45

Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.

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