EBSCN·2024-08-11 03:01Investment Rating - The report maintains a "Buy" rating for both A and H shares of the company [3][16]. Core Views - The company achieved a stable revenue growth with a total revenue of 546.7 billion yuan in the first half of 2024, representing a year-on-year increase of 3.0% [2]. - The report highlights the transition in the telecommunications industry from network construction to network application, suggesting a long-term positive outlook for operators [3]. - The company plans to increase cash dividends as capital expenditures enter a declining cycle, indicating a focus on returning value to shareholders [3]. Summary by Sections Revenue Performance - The company reported a total revenue of 5,467 billion yuan in the first half of 2024, with a main business revenue of 4,636 billion yuan, up 2.5% year-on-year [2]. - The personal market revenue was 255.2 billion yuan, down 1.6% year-on-year, while the household market revenue grew by 7.5% to 69.8 billion yuan [1]. - The enterprise market revenue increased by 7.3% to 112 billion yuan, and emerging markets saw a revenue growth of 13.2% to 26.6 billion yuan [1]. Profitability - The net profit attributable to shareholders was 80.2 billion yuan, reflecting a year-on-year growth of 5.3% [2]. - The EBITDA for the first half was 182.3 billion yuan, showing a slight decline of 0.7% year-on-year [2]. - The comprehensive gross margin improved to 30.81%, an increase of 2.0 percentage points year-on-year, indicating enhanced profitability [14]. Future Projections - The report forecasts net profits for 2024, 2025, and 2026 to be 138.4 billion yuan, 145.6 billion yuan, and 153.1 billion yuan respectively, with corresponding P/E ratios of 16X, 15X, and 14X for A shares and 10X for H shares [3]. - The expected dividend yield for 2024 is 4.6% for A shares and 7.2% for H shares, reinforcing the attractiveness of the stock for income-focused investors [3].