China Mobile's net profit of CNY 53.5 billion, earnings before interest taxes depreciation and amortization (EBITDA) of CNY 133.3 billion, and revenue of CNY 243 billion in 2005 beats our forecasts by 8%, 2% and 1%, respectively. The stronger-than-expected results were largely due to better-than-expected blended APRU. Our earnings per American Depositary Share estimates rise to $1.98 from $1.66 for 2006, and to $2.06 from $1.82 in 2007, to reflect stronger subscriber growth. Despite the company's higher earnings estimates, we see higher capex. Thus, we are cutting our target price to $26 from $28.
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