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UBS Rates CHINA MOBILE at Buy with Target Raised to $110
UBS, in its report, said the 1Q16 results of CHINA MOBILE (00941.HK)  -1.050 (-1.180%)    Short selling $110.26M; Ratio 8.352%   were strong, with its service revenue growth rebounded to 4.9% YoY in 1Q16. Mobile ARPU increased 1.8% YoY in Q116, driven by strong mobile data growth. UBS believed the regulatory pressure to cut data tariffs is reducing, implying that the regulator's focus is tilting towards industry growth in 2016. Though pressure to cancel long-distance and roaming fees remains, UBS has factored the accelerating decline of voice revenue. The research house reiterated the rating at Buy with target lifted from $95 to $110.

As to the business forecast of 2016/2017, UBS expected the service revenue to rise 1.5% and 2.9% yearly; EBITDA to rise 3% and 4.4% respectively. The broker also lowered the earnings forecast by 1.8% to RMB109 billion, expecting a sharp rise in depreciatio

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