ZHESHANG SECURITIES·2024-08-09 05:23Investment Rating - The investment rating for the company is "Buy" and is maintained [5][26]. Core Views - The company's performance is in line with expectations, and the guidance for the full year is positive, indicating a steady growth trajectory [1][24]. - Capital expenditures are expected to decline, with depreciation and amortization significantly decreasing, which will aid in profit release [2][4]. - The company aims to increase its dividend payout ratio to over 75% within the next three years, reflecting a commitment to shareholder returns [5][28]. Financial Summary - The company's revenue for 2024 is projected to grow at a rate of 5.1%, with net profit growth of 5.2% [6][17]. - For the first half of 2024, the company reported a revenue of 546.74 billion yuan, a year-on-year increase of 3.0%, and a net profit of 80.2 billion yuan, up 5.3% [17][22]. - The EBITDA margin decreased by 1.3 percentage points to 33.3%, while the net profit margin improved by 0.3 percentage points to 14.7% [17][18]. Business Segments - In the personal market, revenue decreased by 1.6% to 255.18 billion yuan, while the number of mobile users surpassed 1 billion, with a net increase of 9.26 million users [19]. - The family market saw a revenue increase of 7.5% to 69.84 billion yuan, with a net addition of 8.48 million broadband users [19]. - The government and enterprise market revenue grew by 7.3% to 111.97 billion yuan, with significant growth in mobile cloud services [19]. Cash Flow and Dividend - The company experienced a decline in cash flow, with net cash inflow from operating activities at 131.4 billion yuan, down 18.2% year-on-year [22]. - The interim dividend for 2024 is set to increase by 7.0% to 2.60 HKD per share, with a commitment to further increase the payout ratio [28].