China Unicom(SH:600050) Changjiang Securities·2024-07-24 04:31Investment Rating - The investment rating for China Unicom is "Buy" and is maintained [4]. Core Views - China Unicom has successfully held its 2024 Partner Conference, showcasing multiple innovative achievements. The company has focused on the second curve business from 2013 to 2022, transitioning from industry informatization to industrial internet, with a significant emphasis on building intelligent computing capabilities [4][5]. - The company aims for steady revenue growth and double-digit profit growth in 2024, with a dividend payout ratio not lower than that of 2023, indicating a robust dividend asset strategy [4][5]. Summary by Sections Event Description - The 2024 China Unicom Partner Conference was held from July 19 to 20, themed "Creating a Smart New Era Together" [4]. Event Commentary - The second curve business has gained momentum, with the company leveraging opportunities from 3G, 4G, and 5G commercialization. The focus has shifted towards IDC and cloud computing, enhancing its strategic layout [4]. - In Q1 2024, China Unicom achieved intelligent computing business revenue of 23.2 billion yuan, accounting for 26.1% of its main business revenue, indicating an optimized revenue structure [4][5]. Intelligent Computing Capability - China Unicom is building its intelligent computing capabilities through three main areas: 1. Computing Power Supply: Establishing intelligent computing clusters with over 15 EFLOPS of computing power and launching five intelligent computing products [4]. 2. Intelligent Computing Network: Developing a high-throughput, high-performance intelligent computing network, completing the first industry-wide lossless transmission of over 3000 kilometers of massive data [4]. 3. New Quality Computing Network Capability: Creating a comprehensive computing network brain to enable flexible resource allocation and intelligent scheduling across various sectors [4]. Capital Expenditure and Dividend Policy - In 2023, the company completed capital expenditures of 73.9 billion yuan, a slight decrease of 0.4% year-on-year, with a projected capital expenditure of approximately 65 billion yuan for 2024, a 12% decline [5]. - The dividend payout ratio for A-shares reached 51% and for H-shares 55%, reflecting a 5 percentage point increase year-on-year. The company plans to maintain a dividend payout ratio not lower than that of 2023, showcasing confidence in its development [5]. Investment Recommendations - The company is expected to achieve net profits attributable to shareholders of 9 billion yuan, 9.9 billion yuan, and 10.8 billion yuan for 2024, 2025, and 2026, respectively, with corresponding year-on-year growth rates of 10.6%, 9.7%, and 9.4% [5].