China Mobile: AI and Computing Services Accelerated Roll-Out

China Mobile's 1Q26 results showed steady revenue growth but an EBITDA miss; Goldman Sachs maintains a Neutral rating while raising the target price to HK$94 on strong AI and computing service momentum.

Key Takeaways

• 1.China Mobile reported 1Q26 operating revenue of Rmb266.5bn, up 1% YoY, which was in line with expectations despite an EBITDA miss of 5% YoY.
• 2.Management is focusing on efficiency improvements and the accelerated roll-out of computing and AI services to offset near-term communication service pressures.
• 3.5G base station deployment is slowing down, with MIIT reporting only 49k new stations in March 2026, leading to lower ARPU expansion expectations in the short term.

Table of Contents

• Earnings revision
• Valuation
• Price Target Risks and Methodology - China Mobile (HK)
• Disclosure Appendix
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures
• Ratings, coverage universe and related definitions

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