China Mobile's FY21 results were in line with our expectations. Revenue from telecommunications services increased by 8.0% yoy, while shareholders' net profit increased by 7.7% yoy.
We expect service revenue to grow steadily in FY22. The Company aims to achieve 1.1 million 5G base stations at the end of 2022. We expect 5G to promote mobile ARPU. We expect wireline broadband users to further rise. Due to bandwidth upgrades as well as penetration of value-added applications, we expect broadband blended ARPU to still increase in FY22. We expect corporate customers in FY22 to further increase. With strong market demand and the Company's continuous investment and its strength in cloud and network convergence, we expect DICT revenue to still grow rapidly.
We expect operating expenses to still grow rapidly in FY22. In FY22, we expect growth of network, operation and support expenses to be higher than growth of service revenue, and growth of employee benefit expenses will be similar to growth of total revenue; we expect costs of products sold to still be in line with sales of products; we expect selling expenses to be stable. Overall, we expect EBITDA margin to decrease yoy but EBITDA will increase yoy in FY22.
We revise up the TP from HK$59.00 to HK$61.50 and maintain the investment rating as "Accumulate", given the favorable dividend policy. We revise up FY22-FY23 EPS forecasts by 0.6%/ 0.7%, respectively. The TP represents 8.5x, 7.9x and 7.4x FY22-FY24 PER.