$China Mobile(600941.SH) Quick Interpretation: The financial report remains solid. The company's revenue this quarter was flat year-on-year, while the growth in profit was mainly driven by the improvement in gross margin and the decline in expense ratio. The company's current number of users has exceeded 1 billion, of which 5G users reached 578 million.

The personal market is the company's foundation, contributing more than half of the total revenue. Affected by the decline in average revenue per user, Dolphin Research estimates that the company's personal communication business revenue fell 1% year-on-year this quarter. The flat overall revenue was mainly driven by the growth of communication businesses in the family and enterprise markets.

While the performance remains solid, the market's focus on the company is mainly on capital expenditures and dividend repurchases. The company's capital expenditures this quarter were approximately 36.4 billion yuan, up 5.5% year-on-year. Based on the full-year guidance, the company expects capital expenditures of 151.2 billion yuan in 2025, down 7.8% year-on-year. Although capital expenditures increased in the first quarter, the full-year trend is still contraction, which will help reduce pressure on the expense side and improve profit performance. As for dividends, the company usually conducts them in the second and third quarters, and Dolphin Research believes the company will maintain a high dividend payout ratio.

Although there are minor flaws in this quarter's performance, the overall situation remains solid. With the contraction in capital expenditures, profits are expected to continue to improve. In the current unstable market environment, with "steady" profits and a high dividend payout ratio, China Mobile will be one of the choices under the dividend logic.