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China Mobile(941): 2025 performance is expected to be stable but slightly weak, showing an overall trend of "slight revenue growth and flat profit." Full-year operating revenue reached RMB 1,050.2 billion, a year-on-year increase of 0.9%; main business revenue was RMB 895.5 billion, a slight increase of 0.7%. Although operating profit increased by 4.4% year-on-year, the profit attributable to shareholders decreased slightly by 0.9% year-on-year to RMB 137.1 billion due to the impact of the separate taxation of package revenue. On a comparable basis, the profit attributable to shareholders increased by 2.0%. The company maintained a generous dividend policy, with a total dividend of HKD 5.27 per share for the year, a payout ratio of 75%, providing a high dividend yield of approximately 7%, the highest among its peers. Looking ahead to 2026, the company expects capital expenditure to further decrease by 9.5%, which will help maintain stable cash flow and the high dividend commitment.
US stocks fell for the fifth consecutive week
The S&P 500 and Nasdaq indices recorded their fifth consecutive weekly decline, marking the longest losing streak since 2022, as investor risk aversion surged. Brent crude oil prices rebounded above $110 due to the conflict in Iran, while inflationary pressures pushed the 10-year US Treasury yield to a nine-month high. The Middle East conflict caused oil prices to soar, triggering strong expectations of a rebound in inflation and higher, longer-lasting interest rates. Meanwhile, the market capitalization of the "Meg-7" tech giants evaporated by over $850 billion in a single week, as the market, aside from legal battles, shifted from an AI vision to a more rigorous scrutiny of capital returns. Macroeconomically, geopolitical risks and inflation are weighing on the market, with soaring US Treasury yields suppressing valuations.
Hong Kong Stock Connect saw a net outflow of HK$2.883 billion on Friday, with Pop Mart (9992) experiencing the largest inflow at HK$457 million, followed by Meituan-W (3690) with a net inflow of HK$341 million. The Tracker Fund of Hong Kong (2800) recorded the largest net outflow at HK$3.56 billion, followed by Alibaba-W (9988) with a net outflow of HK$656 million.
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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