截至月份: 2024年4月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國電信股份有限公司 呈交日期: 2024年5月6日 I. 法定/註冊股本變動 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 1. 股份分類 | 普通股 | 股份類別 H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 | 00728 | 說明 H 股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 13,877,410,000 | RMB | | 1 RMB | | 13,877,410,000 | | 增加 / 減少 (-) | | | 0 | | | RMB | | 0 | | 本月底結存 | | | 13,877,410,000 | RMB | | 1 RMB | | 13,877,410,000 | | 2. 股份分類 | 普通股 | 股份類別 | ...

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company's service revenue growth is impressive, with a good increase in net profit attributable to the parent company. The ARPU remains stable, and the production and data business continues to show double-digit growth. The depreciation and amortization ratio to revenue has decreased, and the company is increasing its capacity investments and incentivizing technology innovation talent. A turning point in capital expenditure is expected, with a dividend policy comparable to China Mobile. The company has guided for good growth in service revenue over the next three years, with net profit growth expected to outpace revenue growth, and has announced a new three-year dividend commitment, indicating high certainty in both growth and dividends [5][6][7]. Summary by Sections Financial Performance - In Q1 2024, the company achieved operating revenue of 134.5 billion yuan, a year-on-year increase of 3.7%. The net profit attributable to the parent company was 8.6 billion yuan, up 7.7% year-on-year. Service revenue reached 124.3 billion yuan, growing 5.0% year-on-year, the fastest among the three major operators [5][6]. Revenue Breakdown - Mobile communication service revenue in Q1 2024 was 52.2 billion yuan, a 3.2% increase year-on-year. Fixed-line and smart home service revenue was 31.8 billion yuan, up 2.2% year-on-year. The ARPU for mobile services was 45.8 yuan, stable year-on-year, while the broadband comprehensive ARPU was 48.6 yuan, a 2.3% increase year-on-year. The digital industry revenue reached 38.7 billion yuan, growing 10.6% year-on-year [5][6]. Cost and Expenditure - The company's operating expenses in Q1 2024 were 124.9 billion yuan, a 3.6% increase year-on-year. Network operation and support costs rose by 6.6%, driven by improvements in cloud network service quality. Personnel costs increased by 4.8% due to incentives for technology and innovation talent. Depreciation and amortization grew by 2.8%, with the ratio to revenue decreasing by 0.2 percentage points to 18.1% [5][6]. Capital Expenditure and Dividends - The company has guided for capital expenditure of 96 billion yuan in 2024, a decrease of 2.9% year-on-year, indicating a turning point. Investments in digital industry are expected to be 37 billion yuan, a 3.9% increase year-on-year. The company plans to increase its dividend payout ratio to over 75% over the next three years, aligning with China Mobile's dividend policy [6][7]. Profit Forecast - The forecast for net profit attributable to the parent company for 2024-2026 is 33.1 billion yuan, 35.6 billion yuan, and 38.0 billion yuan, corresponding to year-on-year growth rates of 8.6%, 7.7%, and 6.7%, with price-to-earnings ratios of 17x, 15x, and 14x respectively [6].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market index [3]. Core Insights - The company reported a Q1 2024 revenue of 134.495 billion yuan, a year-on-year increase of 3.65%, and a net profit attributable to shareholders of 8.597 billion yuan, up 7.68% year-on-year [1][3]. - The traditional business is expanding steadily, while the digital transformation strategy is contributing to high growth rates. Service revenue increased by 5.0% year-on-year to 124.347 billion yuan, driven by both traditional and digital businesses [1]. - The company is focusing on optimizing cost structures to enhance profitability, with a sales expense ratio down by 0.40 percentage points to 10.53% and a management expense ratio down by 0.51 percentage points to 7.37% [1]. - The company is committed to increasing shareholder returns, with a dividend payout ratio exceeding 70% and a three-year compound annual growth rate of 31% for dividends per share [1]. - Profit forecasts have been adjusted, with expected net profits for 2024-2026 at 33.406 billion, 36.218 billion, and 39.252 billion yuan, respectively, corresponding to PE ratios of 16.7, 15.4, and 14.2 times [1][4]. Summary by Sections Financial Performance - Q1 2024 revenue: 134.495 billion yuan, +3.65% YoY - Q1 2024 net profit: 8.597 billion yuan, +7.68% YoY - Q1 2024 net profit excluding non-recurring items: 9.160 billion yuan, +5.40% YoY [1]. Business Segments - Mobile business: Net increase of 3.88 million users to 412 million, with 5G users increasing by 10.06 million to 329 million, achieving a penetration rate of approximately 79.9% [1]. - Fixed-line and home business: Net increase of 2.06 million broadband users to 192 million, with revenue growth of 10.4% YoY [1]. - Industrial digitalization: Revenue increased by 10.6% YoY to 38.679 billion yuan [1]. Cost Management and R&D - Continued focus on cost reduction and efficiency improvements, with significant increases in R&D investment, up 13.8% YoY to 1.571 billion yuan [1]. - The company is enhancing its digital capabilities through investments in AI and cloud technologies [1]. Shareholder Returns - The company has increased its dividend payout ratio to over 70%, with plans to raise it to above 75% in the future [1]. - The company aims for sustainable growth in revenue and net profit, indicating strong long-term investment potential [1].

Investment Rating - The report maintains a "Buy" rating for China Telecom (00728 HK) with a target price of HKD 5.00, corresponding to a price-to-earnings ratio of 12.7x/11.7x/10.8x for the years 2024-2026 [1]. Core Insights - China Telecom's service revenue and net profit for Q1 2024 were RMB 124.347 billion (up 5.0% year-on-year) and RMB 8.597 billion (up 7.7% year-on-year), respectively, aligning with market expectations [1]. - The company added 3.88 million mobile users and 2.06 million broadband users in Q1 2024, with mobile ARPU and broadband mixed ARPU increasing by 0.9% and 2.1% year-on-year, respectively [1]. - The report highlights a 10.6% year-on-year growth in industrial digitalization revenue due to ongoing investments in digitalization [1]. - Future dividends are expected to grow steadily, with a proposed increase in the payout ratio to over 75% over the next three years, leading to projected dividend yields of 6.5%, 7.2%, and 8.0% for 2024, 2025, and 2026, respectively [1]. Summary by Sections Financial Performance - Q1 2024 service revenue: RMB 124.347 billion (5.0% YoY growth) [1] - Q1 2024 net profit: RMB 8.597 billion (7.7% YoY growth) [1] - New mobile users: 3.88 million; new broadband users: 2.06 million [1] - Mobile ARPU growth: 0.9% YoY; broadband mixed ARPU growth: 2.1% YoY [1] Dividend Outlook - Proposed increase in payout ratio to over 75% starting in 2024 [1] - Projected dividend yields: 6.5% (2024), 7.2% (2025), 8.0% (2026) [1]

Dividend Policy and Distribution - The company's 2023 annual dividend is RMB 0.2332 per share (including tax), totaling approximately RMB 21.339 billion, exceeding 70% of the net profit attributable to shareholders for the year[5] - The company plans to increase cash dividends to over 75% of the net profit attributable to shareholders from 2024 onwards for the next three years[5] - The company's total share capital at the end of 2023 is 91,507,138,699 shares, with a proposed final dividend of RMB 0.090 per share (including tax), totaling approximately RMB 8.236 billion[5] - The company's mid-year dividend for 2023 was RMB 0.1432 per share (including tax)[5] - Total dividends for 2023 were RMB 0.2332 per share, a 19.0% increase year-on-year, exceeding 70% of the company's net profit[17] - The dividend payout ratio for 2023 is 70.1% of the net profit attributable to shareholders[193] - The company's total cash dividend for 2023, including interim and final dividends, amounts to RMB 21.34 billion[193] - The final dividend for 2023 is expected to be paid on or before July 26, 2024, after approval at the 2023 annual general meeting[100] Financial Performance - Total operating revenue reached RMB 513.6 billion, a year-on-year increase of 6.7%, with service revenue at RMB 465 billion, up 6.9%[17] - Net profit increased by 10.3% to RMB 30.4 billion, with basic earnings per share at RMB 0.33[17] - Capital expenditure was RMB 98.8 billion, and free cash flow reached RMB 13 billion[17] - The company's operating income for 2023 was RMB 5,135.51 billion, a year-on-year increase of 6.9%[62] - The company's net profit attributable to shareholders was RMB 304.46 billion, a year-on-year increase of 10.3%[62] - The company's EBITDA was RMB 1,368.30 billion, a year-on-year increase of 5.0%, with an EBITDA margin of 29.4%[62] - Operating revenue in 2023 reached RMB 513.551 billion, a 6.7% increase compared to 2022[64][66] - Service revenue in 2023 was RMB 464.965 billion, up 6.9% year-over-year, with mobile communication service revenue at RMB 195.66 billion, a 2.4% increase[64][66][67] - Industrial digitalization service revenue grew significantly by 17.9% to RMB 138.89 billion in 2023[66][67] - Fixed-line and smart home service revenue increased by 3.8% to RMB 123.063 billion in 2023[66][68] - Other service revenue declined by 3.4% to RMB 7.352 billion in 2023[66][69] - Operating expenses in 2023 totaled RMB 476.423 billion, a 6.3% increase compared to 2022, accounting for 92.8% of operating revenue[70][71] - Depreciation and amortization expenses rose by 2.9% to RMB 99.702 billion in 2023[71][72] - Network operation and support costs increased by 8.7% to RMB 160.411 billion in 2023[71][73] - Labor costs grew by 9.5% to RMB 92.805 billion in 2023, reflecting increased investment in tech and innovative talent[71][74] - Net profit attributable to shareholders increased by 10.3% to RMB 30.446 billion in 2023[78] - Capital expenditure for 2023 was RMB 98.838 billion, an increase of 6.8% compared to 2022, driven by investments in 5G network construction, cloud-network integration, and AI computing capabilities[79] - Net cash generated from operating activities in 2023 was RMB 137.508 billion, a year-on-year increase of 0.8%[80][81] - Total assets increased by 3.5% to RMB 835.814 billion at the end of 2023, while total liabilities increased by 4.7% to RMB 388.647 billion, resulting in a debt-to-asset ratio of 46.5%[82] - Total debt decreased by RMB 1.342 billion to RMB 91.42 billion at the end of 2023, with 97.3% of the debt denominated in RMB[84] - The company's actual tax rate in 2023 was 22.4%, lower than the statutory rate of 25.0%, due to tax incentives such as tax-exempt investment income from China Tower and R&D expense deductions[79] - Cash and cash equivalents at the end of 2023 were RMB 81.046 billion, with RMB cash and equivalents accounting for 93.6%[81] - The company's operating capital shortage decreased by RMB 5.092 billion to RMB 135.573 billion at the end of 2023, with unused credit lines of RMB 205.452 billion[83] Business Operations and Market Development - The company's main business includes fixed, mobile, and satellite communication services, as well as internet access and information services[2] - The company's A-shares and H-shares are listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange, respectively[2] - The company achieved breakthroughs in technological innovation and completed the layout of strategic emerging businesses, with digital information infrastructure continuously upgraded and new quality productivity rapidly forming[16] - The company actively served and integrated into the new development pattern, seizing market development opportunities in the process of promoting Chinese-style modernization[16] - The company implemented the cloud reform and digital transformation strategy comprehensively, leveraging the advantages of cloud-network integration[16] - The company focused on building a service-oriented, technology-oriented, and security-oriented enterprise, with continuous improvements in governance capabilities and levels[16] - The company's market development momentum grew rapidly, and enterprise reforms were pushed forward in depth[16] - Mobile communication service revenue grew by 2.4% to RMB 195.7 billion, with mobile user ARPU at RMB 45.4, up 0.4%[21] - Fixed-line and smart home service revenue increased by 3.8% to RMB 123.1 billion, with smart home business revenue up 12.8% to RMB 19 billion[21] - Mobile user base grew by 16.59 million, reaching 408 million, maintaining industry leadership for six consecutive years[21] - Broadband user base increased by 9.26 million, reaching 190 million, with broadband ARPU at RMB 47.6, up 2.8%[21] - The company's industrial digital business revenue reached RMB 138.9 billion, a year-on-year increase of 17.9%, accounting for 29.9% of service revenue, an increase of 2.8 percentage points compared to the previous year[23] - The number of enterprise customers increased by 11.3% year-on-year, and the number of new 5G industry application projects increased by 106.3%, with a cumulative total of over 31,000 projects[23] - The number of IoT terminal users exceeded 520 million, and the user scale of applications such as Smart Kitchen and Tianyi Emergency exceeded 77 million[23] - Tianyi Cloud revenue reached RMB 97.2 billion, a year-on-year increase of 67.9%, and international business revenue exceeded RMB 13.7 billion[23] - The company's cloud computer user development volume increased by more than 2 times year-on-year, maintaining a nearly 40% share in the Chinese DaaS market[25] - The company's big data API was called 4.6 billion times annually, a year-on-year increase of 45%, and it has formed over 50 "Star Ocean Big Data" products[26] - The company has launched 12 industry-specific large models and has empowered over 600 projects in scenarios such as grassroots governance and smart cities[26] - The company's cloud-based anti-DDoS service (Cloud Dike) maintains the top market share in China and is listed in Gartner's global top service provider selection list[26] - The company has completed the acquisition of QuantumCTek Co., Ltd., enhancing technological and application innovation breakthroughs in the quantum field[28] - The company has launched the world's first commercial service supporting consumer-grade 5G terminal direct satellite two-way voice and SMS, providing emergency and guaranteed communication for industries such as maritime, industrial, and rescue[29] - The company has developed over 110 digital platforms, empowering digital transformation in government, enterprise, education, healthcare, and finance sectors. These platforms have been deployed in more than 20 provinces and 220 cities, providing comprehensive applications such as one-stop government services and urban management[30] - The company's intelligent computing capacity increased by 8.1 EFLOPS in 2023, reaching a total of 11.0 EFLOPS, a growth of 279.3%. Additionally, the general computing capacity increased by 1.0 EFLOPS, reaching 4.1 EFLOPS, a growth of 32.3%[31] - The company and China Unicom have saved over RMB 340 billion in cumulative investment and over RMB 39 billion in annual operating costs through network co-construction and sharing. They have built over 220,000 new 5G base stations, with a total of over 1.21 million 5G base stations in operation[32] - The company has built 250,000 800MHz base stations capable of 4G/5G integrated services by January 2024, significantly improving network coverage and user experience in rural areas[33] - The company's online development ratio for basic business users increased by 11.5 percentage points year-on-year, and the proportion of AI customer service increased by 12.6 percentage points. AI-powered energy-saving measures in data centers and base stations saved approximately 800 million kWh annually[33] - The company has expanded its global cloud network broadband industry association (WBBA) to 77 member units, covering 32 countries across five continents, and released the WBBA Global Cloud Network Broadband Industry Development Report and the Global Cloud Network Development Index[34] - The company has established 53 overseas branches, serving global demand for communication, internet, cloud computing, and digital transformation[35] - The international transmission network backbone scale is nearly 115Tbps, with over 50% directed towards the "Belt and Road" regions[35] - The company has over 6,000 racks in nearly 30 overseas data centers[35] - The company added 15 new global CDN nodes for its Tianyi Cloud service in 2023[35] - The company reduced greenhouse gas emissions by over 13 million tons through energy-saving measures, with a 19.6% year-on-year decrease in greenhouse gas emissions per unit of telecom business volume[37] - The company used over 1.1 billion kWh of green electricity in 2023, a nearly threefold increase year-on-year[37] - The company signed over 3,000 projects for green and low-carbon products and solutions, serving industries such as government, industrial manufacturing, and construction[37] - The company's digital services have achieved a penetration rate of over 60% in administrative villages, contributing to rural digitalization[38] - The company was recognized as "Asia's Most Admired Company" for the 13th consecutive year in the 2023 Institutional Investor survey[39] - The company aims to deepen its cloud-network transformation, focusing on AI development and meeting digital demands across industries with "network + cloud + AI + applications"[40] - Telecom business revenue reached RMB 1.68 trillion, a year-on-year increase of 6.2%[41] - 5G mobile phone users reached 805 million, accounting for nearly half of total mobile phone users[41] - Fixed broadband access users reached 636 million, with 163 million users having access speeds of 1000Mbps or higher[41] - Mobile internet user access traffic reached 301.5 billion GB, a year-on-year increase of 15.2%[42] - Monthly average data usage per user (DOU) reached 16.85GB, a year-on-year increase of 10.9%[42] - 5G application cases exceeded 94,000, covering 71 out of 97 major national economic categories[42] - Cellular IoT terminal users reached 2.332 billion, accounting for nearly 60% of total mobile network terminal connections[41] - The company is accelerating the deployment of AI infrastructure and transitioning to an "AI+" strategy[41] - The company is actively promoting the integration of cloud, network, and intelligence, and building a full optical base for computing power networks[41] - The company is focusing on compliance with new laws and regulations, including the revised Company Law and the Generative AI Service Management Interim Measures[43][44] - Mobile user base reached 408 million, with a net increase of 16.59 million, maintaining industry leadership for six consecutive years[46] - Mobile user ARPU increased to RMB 45.4, up 0.4% year-over-year[46] - Broadband user base reached 190 million, with a net increase of 9.26 million[46] - Broadband comprehensive ARPU increased to RMB 47.6, up 2.8% year-over-year[46] - Industrial digitalization revenue reached RMB 138.9 billion, up 17.9% year-over-year, accounting for 29.9% of service revenue[46] - Tianyi Cloud revenue reached RMB 97.2 billion, up 67.9% year-over-year[46] - Number of 5G base stations exceeded 1.21 million, achieving continuous coverage in towns and above and effective coverage in developed villages[48] - Greenhouse gas emissions reduced by over 13 million tons through co-construction and sharing and energy-saving measures[49] - Green electricity usage exceeded 1.1 billion kWh, up nearly 3 times year-over-year[49] - AIoT platform users exceeded 520 million, with a year-over-year growth of 45% in API calls[51] - The company's operating revenue in 2023 reached RMB 513.6 billion, a year-on-year increase of 6.7%, with service revenue at RMB 465 billion, up 6.9% year-on-year[56] - Mobile communication service revenue in 2023 was RMB 195.7 billion, a year-on-year increase of 2.4%, with mobile value-added and application revenue at RMB 25.8 billion, up 12.4% year-on-year[56] - The company's mobile user base increased by 16.59 million, reaching 408 million users, with mobile user ARPU at RMB 45.4, a year-on-year increase of 0.4%[57] - Fixed-line and smart home service revenue in 2023 was RMB 123.1 billion, a year-on-year increase of 3.8%, with smart home business revenue at RMB 19 billion, up 12.8% year-on-year[57] - Broadband user base increased by 9.26 million, reaching 190 million users, with broadband comprehensive ARPU at RMB 47.6, a year-on-year increase of 2.8%[57] - The company's quantum computing cloud platform "Tianyan" achieved ultra-quantum fusion, and it was the first globally to enable consumer mobile phones to directly connect to satellites for two-way voice calls and SMS services[53] - The company's data security posture awareness system improved accuracy to 98%, and it built a full-scale user anti-fraud risk model, achieving daily risk assessment for 470 million users[55] - The company's distributed cloud operating system TeleCloudOS 4.0 won the first prize of the 2023 China Communications Society Science and Technology Award[53] - The company's cloud computing and intelligent computing capabilities continued to upgrade, with the self-developed cloud operating system TeleCloudOS 4.0 forming a technological leadership[57] - The company's industry-leading quantum secure communication metropolitan area network was established, and it introduced communication/bank blacklist data, enabling minute-level shutdown of newly inserted cards on involved terminals[55] - Tianti Cloud revenue reached RMB 97.2 billion, a year-on-year increase of 67.9%[58] - Tianti Cloud maintained its leading position in the domestic public cloud IaaS and IaaS+PaaS markets, with its market share continuing to rise[58] - The number of new 5G industry application projects increased by 106.3% year-on-year, with a cumulative total of over 31,000 projects[60] - The company's digital business revenue reached RMB 1,389 billion, a year-on-year increase of 17.9%, accounting for 29.9% of service revenue[60] - The company's operating income for 2023 was RMB 5,135.51 billion, a year-on-year increase of 6.9%[62] - The company's net profit attributable to shareholders was RMB 304.46 billion, a year-on-year increase of 10.3%[62] - The company's EBITDA was RMB 1,368.30 billion, a year-on-year increase of 5.0%, with an EBITDA margin of 29.4%[62] - The company's cloud computer user base grew by more than 2 times year-on-year, maintaining a nearly 40% share in the Chinese DaaS market[58] - The company launched the "Xingchen MaaS Platform," which has empowered over 600 projects in various industries[58] - The company's AI intelligent customer service accounted for a 12.6% year-on-year increase in service volume[63] - Operating revenue in 2023 reached RMB 513.551 billion, a 6.7% increase compared to 2022[64][66] - Service revenue in 2023 was RMB 464.965 billion, up 6.9% year-over-year, with mobile communication service revenue at RMB 195.66 billion, a 2.4% increase[64][66][67] - Industrial digitalization service revenue grew significantly by 17.9% to RMB 138.89 billion in 2023[66][67] - Fixed-line and smart home service revenue increased by 3.8% to RMB 123.063 billion in 2023[66][68] - Other service revenue declined by 3.4% to RMB 7.352 billion in 2023[66][69] - Operating expenses in 2023 totaled RMB 476.423 billion, a 6.3% increase compared to 2022, accounting for 92.8% of operating revenue[70][71] - Depreciation and amortization expenses rose by

证券代码：601728 证券简称：中国电信 公告编号：2024-019 一、 召开会议的基本情况 (一) 股东大会类型和届次 2023 年年度股东大会 召开的日期时间：2024 年 5 月 27 日 上午 10 点整 召开地点：香港湾仔港湾道 1 号香港君悦酒店大堂楼层宴会大礼堂 (五) 网络投票的系统、起止日期和投票时间 中国电信股份有限公司 关于召开 2023 年年度股东大会的通知 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 股东大会召开日期：2024年5月27日 本次股东大会采用的网络投票系统：上海证券交易所股东大会网络投票 系统 (二) 股东大会召集人：董事会 (三) 投票方式：本次股东大会所采用的表决方式是现场投票和网络投票相结 合的方式 (四) 现场会议召开的日期、时间和地点 网络投票系统：上海证券交易所股东大会网络投票系统 网络投票起止时间：自 2024 年 5 月 27 日 至 2024 年 5 月 27 日 采用上海证券交易所网络投票系统，通过交易系统投票平台的投票时间为股 东大会召开当日 ...

Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company achieved a revenue of 1344.95 billion yuan in Q1 2024, representing a year-on-year growth of 3.7%, and a net profit of 91.60 billion yuan, up 5.4% year-on-year [2]. - The growth in revenue is primarily driven by the industrial digitalization business, which saw a 10.6% increase to 386.79 billion yuan in Q1 2024 [2]. - The company continues to enhance its 5G network quality and expand its unique applications, contributing to a 3.2% increase in mobile communication service revenue to 522.26 billion yuan [2]. - The report highlights a steady improvement in profit margins, with a return on equity (ROE) of 1.92% in Q1 2024, showing improvements both year-on-year and quarter-on-quarter [2]. - The company is focusing on cloud-network integration and anticipates continued leadership in the public cloud market, with a planned investment of 18 billion yuan in cloud and computing sectors in 2024 [2]. Summary by Relevant Sections Financial Performance - In Q1 2024, mobile user base reached 412 million, with a net increase of 3.88 million users, and 5G package users reached 329 million, up by 10.06 million [2]. - The company expects to achieve net profits of 335.41 billion yuan, 369.67 billion yuan, and 407.64 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (PE) ratios of 17, 15, and 14 [2][3]. Business Segments - The broadband and smart home services revenue grew by 2.2% to 318.24 billion yuan, with smart home revenue increasing by 10.4% [2]. - The average revenue per user (ARPU) for mobile services was 45.8 yuan, up 0.9% year-on-year, while the broadband ARPU was 48.6 yuan, up 2.1% [2]. Future Outlook - The company is strategically positioned to leverage opportunities in seven emerging industries and future industries, focusing on cloud computing, artificial intelligence, and quantum technologies [2].

Investment Rating - The investment rating for the company is "Buy" (maintained) with a reasonable valuation [2][5][9]. Core Views - The company demonstrated stable operations in Q1 2024, achieving revenue of 134.5 billion yuan (up 3.7% year-on-year) and a net profit of 8.6 billion yuan (up 7.7% year-on-year) [3][6]. - The mobile communication services and home broadband businesses showed steady growth, with mobile service revenue reaching 52.226 billion yuan (up 3.2% year-on-year) and broadband service revenue at 31.824 billion yuan (up 2.2% year-on-year) [3][6]. - The company's digitalization business achieved double-digit growth, with revenue of 38.679 billion yuan (up 10.6% year-on-year) [3][6]. - The company is focusing on optimizing capital expenditure, planning to reduce it to 96 billion yuan in 2024 (down 3% year-on-year) while aiming to increase the dividend payout ratio to over 75% within three years [3][8]. Financial Forecasts and Indicators - Revenue projections for 2024-2026 are 547.584 billion yuan, 581.513 billion yuan, and 611.157 billion yuan, respectively, with year-on-year growth rates of 7.8%, 6.2%, and 5.1% [3][9]. - Net profit forecasts for the same period are 33.126 billion yuan, 35.674 billion yuan, and 37.820 billion yuan, with growth rates of 8.8%, 7.7%, and 6.0% [3][9]. - The company’s average ROE is projected to increase from 6.9% in 2023 to 8.0% in 2026 [3][9]. - The PE ratio is expected to decrease from 18.3 in 2023 to 14.8 in 2026, indicating a more attractive valuation over time [3][9].

Investment Rating - The report maintains an "Accumulate" rating for the company [8] Core Views - The company focuses on cloud transformation and digitalization strategies, achieving steady growth in operating performance [2] - In Q1 2024, the company reported operating revenue of 134.495 billion yuan, a year-on-year increase of 3.7%, with service revenue reaching 124.347 billion yuan, up 5% [2] - The net profit attributable to shareholders was 8.597 billion yuan, reflecting a year-on-year growth of 7.7% [2] Financial Performance - Mobile communication service revenue reached 52.226 billion yuan in Q1 2024, growing by 3.2% year-on-year, with a net increase of 3.88 million mobile users, totaling 412 million [3] - The penetration rate of 5G package users reached 79.9%, with a net increase of 10.06 million users, totaling 329 million [3] - Fixed network and smart home service revenue amounted to 31.824 billion yuan, a year-on-year increase of 2.2% [4] Research and Development - The company has increased its R&D investment, with a focus on strategic emerging industries, and aims to raise the dividend payout ratio to over 75% within three years [5] Earnings Forecast and Valuation - The company is expected to achieve operating revenues of 542.927 billion yuan, 579.823 billion yuan, and 620.287 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 6.91%, 6.80%, and 6.98% [6] - The net profit attributable to shareholders is projected to be 33.711 billion yuan, 37.398 billion yuan, and 41.429 billion yuan for the same years, with growth rates of 10.73%, 10.94%, and 10.78% [6] - The target price is set at 6.63 yuan, based on a 2024 PE ratio of 18 times [6]

Investment Rating - The report maintains a "Buy" rating for China Telecom with a target price indicating a potential upside of 10%-20% over the next six months [6]. Core Insights - China Telecom's Q1 2024 revenue reached CNY 134.495 billion, a year-on-year increase of 3.7%, with a net profit attributable to shareholders of CNY 8.597 billion, up 7.7% year-on-year [1][4]. - The company is focusing on a dual-driven strategy of basic services and digital transformation, achieving significant growth in both mobile communication and digital services [2][4]. - The company emphasizes shareholder returns, with a dividend payout of CNY 0.2332 per share for 2023, representing a 19% increase year-on-year, and plans to increase cash distributions to over 75% of net profit in the next three years [3][4]. Financial Performance Summary - For Q1 2024, mobile communication service revenue was CNY 52.226 billion, a 3.2% increase year-on-year, with a net addition of 3.88 million mobile users, bringing the total to 412 million [2]. - Fixed-line and smart home services generated CNY 31.824 billion in revenue, up 2.2% year-on-year, with broadband ARPU increasing to CNY 48.6, a 2.1% rise [2]. - The digital industry segment reported revenue of CNY 38.679 billion, reflecting a robust growth of 10.6% year-on-year [2]. Financial Projections - The forecast for net profit attributable to shareholders is CNY 33.211 billion for 2024, CNY 36.048 billion for 2025, and CNY 38.817 billion for 2026, indicating a steady growth trajectory [4][5]. - Revenue projections for the next few years are CNY 546.616 billion in 2024, CNY 585.084 billion in 2025, and CNY 625.693 billion in 2026, with growth rates expected to stabilize around 6.94% to 7.64% [5][10]. Valuation Metrics - The report provides a P/E ratio forecast decreasing from 18.33 in 2023 to 14.38 by 2026, indicating an improving valuation outlook [5][10]. - The projected P/B ratio remains stable, with estimates around 1.26 to 1.18 over the same period [5][10]. Shareholder Returns - The company is committed to enhancing shareholder value, with a dividend payout ratio exceeding 70% of net profit for 2023 and plans to increase this to over 75% in the coming years [3][4].