China Unicom(SH:600050) EBSCN·2024-08-16 04:37Investment Rating - The report maintains a "Buy" rating for China Unicom (600050.SH) [3][5] Core Views - The company's operating revenue for the first half of 2024 reached CNY 197.3 billion, a year-on-year increase of 2.9% [2] - EBITDA was CNY 54.9 billion, up 2.7% year-on-year, while total profit amounted to CNY 16.8 billion, reflecting a 10.2% increase [2] - The net profit attributable to the parent company was CNY 6 billion, marking a 10.9% year-on-year growth, achieving double-digit growth for eight consecutive years [2] - The board proposed an interim dividend of CNY 0.0959 per share, a 20.5% increase compared to the previous year, significantly higher than the basic earnings per share growth rate [2] Summary by Sections Revenue and Profitability - The revenue from the connectivity business was CNY 125.1 billion, growing by 2.1% year-on-year, with over 6 million net new mobile users, reaching a total of 340 million users [2] - The smart computing business generated CNY 43.5 billion in revenue, a 6.6% increase year-on-year, with cloud revenue at CNY 31.7 billion, up 24.3% [2] - The overall gross margin improved by 0.92 percentage points year-on-year, indicating enhanced profitability [3] Capital Expenditure and Cash Flow - Capital expenditure decreased by 13.4% year-on-year, demonstrating effective cost control [3] - Operating cash flow decreased by 23.2% year-on-year, primarily due to the expansion of the smart computing business [3] Future Outlook - The report forecasts net profit for 2024 to be CNY 9.3 billion, with projected PE ratios of 16X, 14X, and 12X for 2024, 2025, and 2026 respectively [3] - The transition from 5G infrastructure to 5G applications is expected to support long-term growth, with a continued improvement in free cash flow and performance release capabilities [3]