China Mobile Remains Top Income Pick as All Three Major Telecom Operators Report Profit Decline
SingTao · 1 SOURCESabout 3 hours ago2 MIN
Summary
China Mobile (941), China Unicom (762), and China Telecom (728) all reported year-on-year profit declines in their first-half 2025 results. China Unicom made the most dramatic move by suspending its interim dividend for the first time since 2021, while China Telecom cut its payout by about 11%. Only China Mobile managed to increase its interim dividend by 5.5%, maintaining its appeal to income-seeking investors .
Key Points
- China Mobile reported profit of 78.9 billion yuan (RMB), down 6.3% year-on-year, the smallest decline among the three, while raising its interim dividend to HK$2.9 per share .
- China Unicom's profit plummeted 34.6% to 9.47 billion yuan, marking the first suspension of interim dividend since 2021 .
- China Telecom posted a 14.9% profit decline to 19.59 billion yuan and reduced its interim dividend from HK$0.1993 to HK$0.1856 per share .
- Experts from Everbright Securities International and Blue Water Capital both recommend China Mobile as the preferred dividend stock, citing its stable business operations and reliable dividend payout capability .
- Analysts suggest buying China Mobile on pullbacks to around HK$80, with the stock currently trading at HK$82.8, implying a 6.3% dividend yield .
Why It Matters
The divergent dividend policies among the three major state-owned telecom operators signal varying levels of financial resilience and strategic priorities. China Mobile's ability to maintain and increase dividends despite a challenging operating environment, including a VAT rate increase from 6% to 9%, reinforces its standing as a defensive income stock for Hong Kong investors seeking stable returns in an uncertain market .
The divergent dividend policies among the three major state-owned telecom operators signal varying levels of financial resilience and strategic priorities. China Mobile's ability to maintain and increase dividends despite a challenging operating environment, including a VAT rate increase from 6% to 9%, reinforces its standing as a defensive income stock for Hong Kong investors seeking stable returns in an uncertain market .