Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 13, representing a potential upside of 38% from the current price of HKD 9.6 [4][7]. Core Insights - The company's revenue and profit performance are in line with expectations, with a steady increase in the dividend payout ratio to 60%. For the fiscal year ending December 31, 2024, the company is projected to achieve a revenue of HKD 389.6 billion (+4.6% YoY) and a net profit of HKD 20.7 billion (+10.1% YoY) [3][7]. - The company is experiencing robust growth in its AIDC (Artificial Intelligence Data Center) orders, with a significant increase in its cloud and data center revenues driven by advancements in artificial intelligence [7]. - The capital expenditure structure is optimized, with a reduction in overall capital spending while maintaining growth in computing power investments [7]. Financial Summary - **Revenue Projections**: The company expects revenues to grow from HKD 372.6 billion in 2023 to HKD 389.6 billion in 2024, with a compound annual growth rate (CAGR) of approximately 4.6% over the next few years [3][12]. - **Net Profit**: The net profit is projected to increase from HKD 18.9 billion in 2023 to HKD 20.7 billion in 2024, reflecting a growth rate of 10.1% [3][12]. - **Earnings Per Share (EPS)**: EPS is expected to rise from HKD 0.65 in 2023 to HKD 0.72 in 2024, indicating a growth of 11.8% [3][12]. - **Dividend Growth**: The company has consistently increased its dividend per share, with a projected dividend of HKD 0.43 for 2024, up 20.1% YoY, and a target payout ratio increasing to over 75% in the coming years [7][12]. - **Capital Expenditure**: The capital expenditure is forecasted to decrease from HKD 613.7 billion in 2024 to HKD 550 billion in 2025, while investments in computing power are expected to grow by 28% [7][12]. Market Position - The company holds a strong position in the telecommunications sector, with significant growth in its IoT (Internet of Things) connections and a leading position in the automotive IoT market [7]. - The report highlights the company's strategic focus on AI and cloud services, which are anticipated to drive future revenue growth [7].

点击 上方 硬AI 关注我们 2024年中国联通资本开支同比下降17%至人民币613.7亿元，算力投资同比上升19%。中国联通表示，公司为人工智能基 础设施和重大工程专项做了特别预算，预计2025年算力投资同比增长28%。 硬·AI 作者 |卜淑倩 编辑 | 硬 AI 2024年，中国联通在传统通信业务稳健增长的基础上，算网业务加速发力，推动公司全年营收和净利润实 现稳健增长。同时，公司为人工智能基础设施和重大工程专项做了特别预算，预计2025年算力投资同比增 长28%，推动固定资产投资总额达到550亿元。 18日，中国联通公布2024年年度业绩报告。 1）财务表现： 营业收入：人民币3896亿元，同比增长4.6%。 净利润：人民币206亿元，同比增长10.1%。 净资产收益率：提升至5.8%。 2）核心业务进展： 联通通信业务： 2024年收入达到2613.3亿元，同比增长1.5%，占服务收入的76.0%。 算网数智业务： 收入达到824.9亿元，同比增长9.6%，占服务收入的24.0%。其中，联通云收入达 到686亿元，同比增长17.1%，数据中心业务收入达到259亿元，同比增长7.4%，算力服务签约金额 ...

China Unicom (00762) H2 2024 Earnings Call March 18, 2025 10:00 AM ET Moderator Ladies and gentlemen, good afternoon. My name is Meng Shuxin. I'm delighted today to be able to be with you once again today, and we are very grateful for your long term support to China Unicom. On behalf of the management of the company, I welcome you earnestly to the February. Today, we have two items. First of all, that our Chairman would speak to us and then the management would communicate with fellow media and analyst frie ...

Financial Data and Key Metrics Changes - Operating revenue increased to JPY 386.89 billion, representing a 4.6% growth year-on-year [5] - Profitability reached JPY 20.6 billion, a 10.1% increase compared to the same period last year [5] - Return on equity rose by 5.8% [5] - Total mobile and broadband subscribers reached 470 million, with IoT connections exceeding 620 million [5] Business Line Data and Key Metrics Changes - Uni Unicom cloud revenue grew by 17.1% to JPY 68.6 billion [6] - Data center revenue increased by 7.4% to JPY 25.9 billion [6] - Net contract value of Intelligent Computing business exceeded JPY 1 billion [6] Market Data and Key Metrics Changes - International business revenue reached JPY 500 million, a 15.2% increase over the previous year [22] - The company established 40 global branches in countries like Saudi Arabia, Peru, UAE, and Uzbekistan [22] Company Strategy and Development Direction - Focus on connectivity communications, computing, and digital smart appliances, emphasizing innovation and breakthroughs [4] - Investment strategy aimed at building new infrastructure with a focus on intelligent operations [7] - Anticipated CapEx for 2025 is around JPY 55 billion, with a 28% year-on-year increase in computing power [25] - Commitment to enhancing innovation momentum and optimizing business structure [26] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory and commitment to enhancing quality, efficiency, and revenue [25] - The company aims to create more value for society and investors while fulfilling corporate ESG responsibilities [23][26] Other Important Information - The company was included in the FTSE China A50 index, effective soon [24] - Dividend payout ratio increased by 5% points, with a 20.1% increase in dividend payout [24][25] Q&A Session Summary Question: What are the expectations for future growth? - Management indicated that they anticipate continued growth in both domestic and international markets, with a focus on innovation and infrastructure development [25] Question: How is the company addressing ESG responsibilities? - The company highlighted its efforts in energy efficiency, clean energy use, and serving rural areas through digital platforms [23] Question: What are the key areas of investment for the upcoming year? - Key areas of investment include computing power, AI projects, and infrastructure development, with a special budget allocated for these initiatives [25]

Financial Performance - Operating revenue reached RMB 389.6 billion, a year-on-year increase of 4.6%; profit attributable to equity holders was RMB 20.6 billion, up 10.1% year-on-year[3]. - Total revenue for the year ended December 31, 2024, was RMB 389,589 million, an increase of 4.3% from RMB 372,597 million in 2023[24]. - Net profit for the year was RMB 20,733 million, representing a growth of 9.6% compared to RMB 18,922 million in 2023[24]. - Basic earnings per share increased to RMB 0.67 in 2024 from RMB 0.61 in 2023, reflecting a growth of 9.8%[24]. - Total comprehensive income for the year was RMB 20,996 million, up from RMB 19,241 million in 2023, marking an increase of 9.1%[25]. - Total service revenue for 2024 reached RMB 345.975 billion, an increase of 3.4% from RMB 335.170 billion in 2023[47]. - Revenue from communication product sales increased to RMB 43.614 billion in 2024, up 16.5% from RMB 37.427 billion in 2023[47]. - The company's internet communication business revenue was RMB 261.33 billion, reflecting a year-on-year growth of 1.5%[72]. - The smart network business revenue amounted to RMB 82.49 billion, marking a year-on-year increase of 9.6%[73]. Dividends - The proposed final dividend is RMB 0.1562 per share (before tax), with a total annual dividend of RMB 0.4043 per share (before tax), representing a year-on-year increase of 20.1%[3]. - The company declared an interim dividend of RMB 0.2481 per share for 2024, totaling approximately RMB 75.91 billion, compared to RMB 0.203 per share in 2023[58]. - The proposed final dividend for the year ending December 31, 2024, is RMB 0.1562 per share, amounting to approximately RMB 47.79 billion[57]. - The board proposed a final dividend of RMB 0.1562 per share, totaling approximately RMB 4.779 billion, subject to shareholder approval at the annual general meeting[98]. - The final dividend record date is set for June 6, 2025, with the payment expected around June 25, 2025, if approved[98]. User Growth and Engagement - Mobile and broadband user numbers reached 470 million, with a net increase of 19.52 million; IoT connections exceeded 620 million, with a net increase of 130 million[5]. - The number of cloud disk users exceeded 180 million, and ultra-clear users surpassed 50 million, indicating significant growth in user engagement[17]. - The total number of mobile internet users exceeded 340 million, with a net increase of 10.68 million users[1]. - The broadband internet user base surpassed 120 million, with a net increase of 8.84 million users[1]. Capital Expenditure and Investment - Capital expenditure for 2024 is RMB 61.37 billion, a decrease of 17% year-on-year, with computing power investment rising by 19%[3]. - The company aims for revenue, profit, and return on equity to achieve strong growth by 2025, with fixed asset investment projected at approximately RMB 55 billion, including a 28% year-on-year increase in computing power investment[21]. - Total capital expenditures for 2024 amounted to RMB 61.37 billion, with net cash flow from operating activities at RMB 89.40 billion, resulting in free cash flow of RMB 28.03 billion after capital expenditures[90]. Research and Development - R&D expenses increased by 9.1% year-on-year, with 42% of technology talent being innovation-focused[12]. - The company aims to enhance innovation and development, focusing on overcoming key technological bottlenecks and improving overall operational quality[62]. Operational Efficiency and Costs - The company’s operating costs were RMB 373.56 billion, up 4.5% year-on-year, with a cost-to-revenue ratio of 95.9%[75]. - The depreciation and amortization expenses were RMB 83.39 billion, down 1.7% year-on-year, reducing its share of operating revenue from 22.8% to 21.4%[77]. - In 2024, employee compensation and benefits expenses amounted to RMB 64.93 billion, a year-on-year increase of 3.2%, accounting for 16.7% of operating revenue, down from 16.9% in the previous year[79]. - Management expenses decreased by 7.4% year-on-year to RMB 5.12 billion, representing 1.3% of operating revenue, down from 1.5% in the previous year[82]. Corporate Governance and Compliance - The board of directors includes executive and independent non-executive members, ensuring diverse governance[106]. - The group has adopted revised Hong Kong Financial Reporting Standards, which do not significantly impact the financial position and performance as presented in the consolidated financial statements[41]. - The new Hong Kong Financial Reporting Standard 18, effective from January 1, 2027, will introduce new requirements for the presentation and disclosure of financial statements[44]. ESG and Social Responsibility - The company is actively pursuing ESG responsibilities, having established 22 national-level green data centers and promoting network energy conservation[20]. - The company has upgraded its "Unicom Rural" platform, serving 260,000 administrative villages and 280 million rural users, contributing to rural revitalization[20].

申万宏源宏观 . 申万宏源证券研究所 作者： | 宏观研究部 赵伟 申万宏源证券首席经济学家 贾东旭 高级宏观分析师 以下文章来源于申万宏源宏观 ，作者赵伟 贾东旭等 侯 倩楠 宏观分析师 联系人： 侯倩楠 政策跟踪 一、中央一号文件发布，提出扎实推进乡村全面振兴 2月23日，《中共中央国务院关于进一步深化农村改革扎实推进乡村全面振兴的意见》发布。文件指出 实现中国式现代化，必须加快推进乡村全面振兴。坚持农业农村优先发展，坚持城乡融合发展，坚持守正创 新，锚定推进乡村全面振兴、建设农业强国目标，以改革开放和科技创新为动力，巩固和完善农村基本经营 制度，深入学习运用"千万工程"经验，确保国家粮食安全，确保不发生规模性返贫致贫，提升乡村产业发展 水平、乡村建设水平、乡村治理水平，千方百计推动农业增效益、农村增活力、农民增收入，为推进中国式 现代化提供基础支撑。 | 图表 16:《中共中央国务院关于进一步深化农村改革扎实推进乡村全面振兴的意见》主要内容 | | | | | --- | --- | --- | --- | | 时间 | 事件 | 内容概要 | 主要内容 | | | | 持续增强粮食等重 | 深入推进粮 ...

Financial Performance - Revenue for the first three quarters of 2024 reached RMB 290.12 billion, a year-on-year increase of 3.0%[1][3] - EBITDA for the first three quarters of 2024 was RMB 80.4 billion, up 2.0% year-on-year[1][3] - Net profit attributable to equity holders of the company was RMB 19.03 billion, a year-on-year increase of 10.3%[1][3] - The company aims to achieve steady revenue growth and double-digit profit growth for the full year[3] Subscriber Growth - Mobile subscribers reached 345 million, with a net increase of 11.23 million for the year, the highest in nearly six years[3] - 5G package subscribers reached 286 million, with a penetration rate of 83%[3] - IoT connections reached 594 million, with a net increase of nearly 100 million[3] - Fixed-line broadband subscribers reached 121 million, with a net increase of 7.12 million for the year[3] Cloud and Data Center Revenue - China Unicom Cloud revenue reached RMB 43.86 billion, a year-on-year increase of 19.5%[3] - Data center revenue reached RMB 19.69 billion, a year-on-year increase of 6.8%[3] Board of Directors - The company's board of directors consists of executive directors: Chen Zhongyue, Jian Qin, Wang Junzhi, and Li Yuzhuo, and independent non-executive directors: Zhang Yonglin, Zhong Ruiming, Luo Fanjiaofen, and Fan Junhua[6]

Revenue and Profit Growth - Service revenue reached RMB 175.7 billion, up 2.7% year-on-year[4] - Total revenue increased to RMB 197.3 billion, a 2.9% year-on-year growth[4] - Net profit attributable to equity holders rose to RMB 13.8 billion, an 11.3% year-on-year increase[4] - Revenue for the first half of 2024 reached RMB 197.34 billion, a year-on-year increase of 2.9%[14] - Net profit attributable to equity holders was RMB 13.79 billion, up 11.3% year-on-year[14] - Total operating revenue for the first half of 2024 reached RMB 197.34 billion, a year-on-year increase of 2.9%, with service revenue accounting for RMB 175.66 billion, up 2.7%[15] - Pre-tax profit for the first half of 2024 was RMB 16.92 billion, a 10.4% increase year-on-year, with net profit attributable to equity holders reaching RMB 13.79 billion, up 11.3%[22][24] - Revenue increased to RMB 197,341 million in the first half of 2024, up from RMB 191,833 million in the same period of 2023, representing a growth of 2.9%[28] - Net profit attributable to equity holders of the company rose to RMB 13,793 million in H1 2024, compared to RMB 12,391 million in H1 2023, an increase of 11.3%[28] - Basic earnings per share increased to RMB 0.45 in H1 2024 from RMB 0.40 in H1 2023, reflecting a 12.5% growth[28] - Total comprehensive income for the period rose to RMB 14,062 million in H1 2024, up from RMB 13,002 million in H1 2023[29] - Total comprehensive income for the first half of 2024 was RMB 14,062 million, compared to RMB 13,002 million in the same period of 2023[33] - Net profit attributable to equity holders of the company for the six months ended June 30, 2024, was RMB 13,793 million, an increase from RMB 12,391 million in the same period in 2023[62] - Basic/diluted earnings per share for the six months ended June 30, 2024, were RMB 0.45, up from RMB 0.40 in the same period in 2023[62] - The company reported a pre-tax profit of 16,919 million RMB in 2024, up from 15,320 million RMB in 2023, reflecting improved profitability[57] EBITDA and Financial Performance - EBITDA stood at RMB 55 billion, up 2.7% year-on-year[4] - EBITDA for the first half of 2024 was RMB 55.01 billion, a 2.7% increase year-on-year, with the EBITDA-to-service revenue ratio remaining stable at 31.3%[25] User and Connectivity Growth - Mobile users increased by over 6 million, reaching a total of 340 million[5] - IoT connections exceeded 560 million, with broadband users reaching 117 million[5] - 5G package user penetration surpassed 80%, and gigabit broadband user penetration exceeded 25%[5] Cloud and Data Services - Unicom Cloud revenue grew 24.3% year-on-year to RMB 31.7 billion[6] - Data service revenue rose 8.6% year-on-year to RMB 3.2 billion, with strong growth in government and enterprise data platforms[7] - Internet communication business revenue grew to RMB 125.06 billion, a 2.1% increase year-on-year, while computing and digital intelligence business revenue rose to RMB 43.54 billion, up 6.6%[17] - Data and internet application services revenue increased to RMB 51.971 billion for the six months ended June 30, 2024, up from RMB 47.752 billion in the same period in 2023[44] International Business - International business revenue increased by 8.4% to RMB 6 billion, driven by IoT and roaming services[8] R&D and Innovation - R&D investment increased by 13% year-on-year in the first half of the year, focusing on network, data, and intelligence innovations[10] - The company achieved 10 EFLOPS of AI computing power and deployed over 20 large-scale computing center parks[11] - Research and development expenses tax deductions amounted to 731 million RMB in 2024, up from 610 million RMB in 2023, supporting innovation efforts[57] Network Infrastructure - 5G mid-frequency base stations exceeded 1.31 million, and low-frequency base stations reached 780,000 in the first half of the year[11] - Fixed asset investment in the first half of the year was RMB 23.9 billion, with a total planned investment of no more than RMB 65 billion for the year[13] - Capital expenditures for the first half of 2024 totaled RMB 23.9 billion, with free cash flow after capital expenditures reaching RMB 5.39 billion[26] - Total capital commitments for telecommunications network construction amounted to RMB 76.427 billion as of June 30, 2024, slightly down from RMB 77.404 billion as of December 31, 2023[119] Environmental and Social Responsibility - The company reduced greenhouse gas emissions by approximately 6.78 million tons in the first half of the year[12] - The energy consumption per unit of telecom business decreased by 6% year-on-year[12] - The digital village platform now covers over 250,000 administrative villages[12] Financial Position and Assets - Total assets as of June 30, 2024, increased to RMB 667.74 billion, while total liabilities decreased to RMB 303.67 billion, resulting in a debt-to-capital ratio of 10.8%, down from 11.6% at the end of 2023[27] - Total assets grew to RMB 667,740 million as of June 30, 2024, up from RMB 661,051 million at the end of 2023[30] - Fixed assets decreased to RMB 348,616 million as of June 30, 2024, compared to RMB 355,995 million at the end of 2023[30] - Cash and cash equivalents stood at RMB 45,839 million as of June 30, 2024, down from RMB 47,733 million at the end of 2023[30] - Total equity increased to RMB 364,071 million as of June 30, 2024, up from RMB 353,898 million at the end of 2023[31] - Total liabilities decreased to RMB 303,669 million as of June 30, 2024, compared to RMB 307,153 million at the end of 2023[32] - Total equity increased to RMB 364,071 million as of June 30, 2024, up from RMB 353,898 million at the beginning of the year[33] - Cash and cash equivalents decreased by RMB 1,917 million in the first half of 2024, ending at RMB 45,839 million[34] - Total assets minus current liabilities increased to RMB 403,850 million as of June 30, 2024, from RMB 397,399 million at the end of 2023[32] - The company's total equity attributable to equity holders increased to RMB 361,590 million as of June 30, 2024, from RMB 351,474 million at the beginning of the year[33] - Fixed assets increased to RMB 1,010,454 million as of June 30, 2024, compared to RMB 996,440 million at the beginning of the period[63] - Right-of-use assets increased by RMB 4.929 billion for the six months ended June 30, 2024, compared to RMB 5.418 billion in the same period in 2023[66] - Financial assets measured at fair value totaled RMB 23,348 million as of June 30, 2024, down from RMB 29,645 million as of December 31, 2023[67] - Accounts receivable increased to RMB 83,492 million as of June 30, 2024, from RMB 57,349 million as of December 31, 2023[71] - Credit loss allowance for accounts receivable increased to RMB 25,920 million as of June 30, 2024, from RMB 18,657 million as of December 31, 2023[71] - Intangible assets decreased to RMB 16,995 million as of June 30, 2024, from RMB 18,265 million as of December 31, 2023[70] - Prepaid transmission line and circuit usage fees decreased to RMB 1,240 million as of June 30, 2024, from RMB 1,601 million as of December 31, 2023[70] - Other assets totaled RMB 21,026 million as of June 30, 2024, down from RMB 22,535 million as of December 31, 2023[70] - Accounts receivable increased significantly from RMB 38,692 million as of December 31, 2023, to RMB 57,572 million as of June 30, 2024, with the largest increase in the "over three months to one year" category, rising from RMB 15,024 million to RMB 22,442 million[72] - Prepaid expenses and other current assets decreased from RMB 26,208 million as of December 31, 2023, to RMB 20,635 million as of June 30, 2024, with a notable reduction in buyback financial assets from RMB 5,005 million to zero[74][75] - The company's total financial assets as of June 30, 2024, were RMB 160.349 billion, slightly down from RMB 161.279 billion as of December 31, 2023[86] - The fair value of equity investments measured at fair value through other comprehensive income (non-reversible) was RMB 2,138 million in Level 1 and RMB 98 million in Level 3, totaling RMB 2,236 million[95] - The fair value of financial assets measured at fair value through profit or loss was RMB 2,816 million in Level 1 and RMB 1,257 million in Level 3, totaling RMB 4,073 million[95] - The fair value of debt investments measured at fair value through other comprehensive income (reversible) was RMB 17,039 million, all in Level 1[95] - The total fair value of financial assets measured at fair value was RMB 23,348 million, with RMB 21,993 million in Level 1 and RMB 1,355 million in Level 3[95] - The fair value of equity investments measured at fair value through other comprehensive income (non-reversible) decreased to RMB 1,929 million in Level 1 and increased to RMB 113 million in Level 3, totaling RMB 2,042 million[96] - The fair value of financial assets measured at fair value through profit or loss decreased to RMB 2,443 million in Level 1 and RMB 1,270 million in Level 3, totaling RMB 3,766 million[96] - The fair value of debt investments measured at fair value through other comprehensive income (reversible) increased to RMB 23,837 million, all in Level 1[96] - The total fair value of financial assets measured at fair value increased to RMB 29,645 million, with RMB 28,209 million in Level 1 and RMB 1,383 million in Level 3[96] - The fair value of long-term bank loans and amounts due to the ultimate holding company was RMB 1,177 million and RMB 855 million, respectively, as of June 30, 2024[100] Costs and Expenses - Operating costs for the first half of 2024 were RMB 184.69 billion, a 2.2% increase year-on-year, with the cost-to-revenue ratio decreasing from 94.2% to 93.6%[18][19] - Network, operation, and support costs for the six months ended June 30, 2024, were RMB 30.448 billion, with network, housing, equipment, and facility usage fees accounting for RMB 11.333 billion[46] - Employee compensation and benefits expenses for the six months ended June 30, 2024, were RMB 28.711 billion, with wages and salaries accounting for RMB 20.053 billion[48] - The cost of sales for communication products for the six months ended June 30, 2024, was RMB 21.153 billion, with mobile phones and other communication products accounting for RMB 20.822 billion[49] - Expected credit loss impairment increased to 7,235 million RMB in 2024 from 3,244 million RMB in 2023, reflecting a significant rise in credit risk[51] - Service technology support costs rose to 27,474 million RMB in 2024, up from 25,828 million RMB in 2023, indicating higher operational expenses[51] - Total financial expenses decreased to 907 million RMB in 2024 from 1,005 million RMB in 2023, primarily due to lower interest expenses[52] - Government subsidies increased to 661 million RMB in 2024 from 344 million RMB in 2023, reflecting higher support from authorities[53] - Income tax expense rose to 3,083 million RMB in 2024 from 2,820 million RMB in 2023, driven by higher taxable profits[56] - Deferred tax assets increased to 2,667 million RMB in 2024 from 1,505 million RMB in 2023, indicating higher future tax benefits[59] - The company's subsidiaries in Mainland China enjoy a preferential tax rate of 15% for high-tech enterprises, contributing to tax savings[58] - Unrecognized deferred tax assets for financial assets measured at fair value through other comprehensive income amounted to 9,517 million RMB in 2024[58] Cash Flow and Financing - Net cash inflow from operating activities was RMB 29,289 million for the first half of 2024, down from RMB 38,287 million in the same period of 2023[34] - Net cash outflow from investing activities was RMB 22,754 million in the first half of 2024, compared to RMB 35,257 million in the same period of 2023[34] - Net cash outflow from financing activities was RMB 8,452 million in the first half of 2024, up from RMB 6,176 million in the same period of 2023[34] - The company proposed an interim dividend of RMB 7,591 million for 2024, compared to no interim dividend in 2023[31] - The company declared an interim dividend of RMB 0.2481 per share for 2024, totaling approximately RMB 7.591 billion, compared to RMB 0.203 per share and RMB 6.211 billion for the same period in 2023[79] - Long-term bank borrowings decreased from RMB 1,606 million as of December 31, 2023, to RMB 1,468 million as of June 30, 2024, with a reduction in the portion due within one year from RMB 354 million to RMB 351 million[80][81] - Short-term bank borrowings increased slightly from RMB 681 million as of December 31, 2023, to RMB 691 million as of June 30, 2024, with interest rates ranging from 1.45% to 1.55%[83] - The company's financial assets measured at fair value through other comprehensive income increased by approximately RMB 165 million in the six months ending June 30, 2024, compared to an increase of RMB 266 million in the same period in 2023[87] - The fair value of financial assets measured at fair value through other comprehensive income was approximately RMB 1.948 billion as of June 30, 2024, up from RMB 1.783 billion as of December 31, 2023[87] - The company recognized share-based payment expenses and other reserves of RMB 141 million for the six months ending June 30, 2024, under the second phase of the restricted A-share incentive plan, compared to RMB 142 million in the same period in 2023[91] - A total of 3,411,000 restricted shares under the second phase of the restricted A-share incentive plan were deemed forfeited during the six months ending June 30, 2024, compared to none in the same period in 2023[91] - The company's financial transactions with China Unicom Group and its subsidiaries included RMB 5,400 million in loans provided and RMB 3,400 million in repayments received during the six months ended June 30, 2024[103] - Accounts receivable from China Unicom Group increased to RMB 6.6 billion as of June 30, 2024, up from RMB 4.6 billion as of December 31, 2023[106] - Accounts payable to China Unicom Group and its subsidiaries reached RMB 7.698 billion as of June 30, 2024, with deposit interest rates ranging from 0.42% to 2.75%[107] - Engineering design and construction services expenses with China Unicom Group's associates and joint ventures increased to RMB 1.532 billion in the first half of 2024, up from RMB 1.140 billion in the same period of 2023[110] - Telecommunications value-added services revenue from associates and joint ventures rose to RMB 402 million in the first half of 2024, compared to RMB 190 million in the same period of 2023[113] - The company recognized RMB 2.005 billion in new right-of-use assets for tower assets in the first half of 2024, down from RMB 3.032 billion in the same period of 2023[115] - Accounts payable to tower companies (excluding lease liabilities) decreased to RMB 13.003 billion as of June 30, 2024, from RMB 13.794 billion as of December 31, 2023[117] Corporate Governance and Compliance - The unaudited condensed consolidated interim financial statements were approved by the board of directors on August 15, 2024[121] - Deloitte reviewed the condensed consolidated interim financial statements and found no material misstatements, confirming compliance with Hong Kong Accounting Standard 34[124] - No share options were granted under the 2014 Share Option Plan from its adoption until June 30, 2024, and the plan expired on

Investment Rating - The report maintains a "Buy" rating for China Unicom with a target price of HKD 7.6, representing a potential upside of 17% from the current stock price of HKD 6.5 [1][3]. Core Insights - China Unicom has achieved double-digit profit growth for eight consecutive years, with a dividend payout ratio increased to 55% [1]. - The company's revenue for the first half of 2024 reached RMB 197.3 billion, a year-on-year increase of 2.9%, while service revenue was RMB 175.7 billion, up 2.7% year-on-year [1]. - The EBITDA for the same period was RMB 55 billion, reflecting a 2.7% year-on-year growth, and the net profit attributable to shareholders was RMB 13.8 billion, marking an 11.3% increase year-on-year [1]. Summary by Sections Financial Performance - In the first half of 2024, China Unicom's operating income was RMB 197.3 billion, with a year-on-year growth of 2.9%. The service revenue was RMB 175.7 billion, growing by 2.7% year-on-year. EBITDA reached RMB 55 billion, also up by 2.7% year-on-year, while net profit attributable to shareholders was RMB 13.8 billion, reflecting an 11.3% increase year-on-year [1][6]. - The company reported a return on equity of 3.7%, an increase of 0.26% year-on-year, and a debt-to-asset ratio of 45.5%, down by 1% year-on-year [1]. Business Segments - The internet communication service revenue for the first half of 2024 was RMB 125.1 billion, a year-on-year increase of 2.1%, accounting for three-quarters of the main business. The mobile user base reached 340 million, with a net addition of 6 million users, and the penetration rate of 5G packages exceeded 80% [1]. - The smart network business saw rapid growth, with revenue of RMB 43.5 billion, up 6.6% year-on-year, contributing over 60% of the new service revenue. Cloud revenue was RMB 31.7 billion, growing by 24.3% year-on-year [1]. Future Outlook - The report anticipates a gradual increase in the dividend payout ratio to 70% in the future, despite a downward adjustment in revenue growth expectations for 2024-2026 to 3.8%, 3.7%, and 3.6% respectively [1][4]. - The target price of HKD 7.6 is based on a 10x earnings multiple for 2024 profits, reflecting the company's solid fundamentals and potential for increased dividends [1].

China Unicom (00762) H1 2024 Earnings Call August 15, 2024 05:00 AM ET Speaker0 Respected investors, analysts, and friends from the media, ladies and gentlemen, good afternoon. I am Wang Yisheng from the Board of Directors Office of China Unicom. Welcome to our 2024 interim results briefing. Thank you for your support all along. We are having our briefing both in Beijing and in Hong Kong with an online and offline combination. With miss Meng Chu Sheng and myself, we'll be hosting the meeting on the two plac ...