CSC SECURITIES (HK) LTD·2024-08-23 07:41Investment Rating - The report maintains a "Buy" rating for the company, indicating a potential upside of 15% to 35% [2][5]. Core Insights - The company reported a revenue of 624.87 billion RMB for the first half of 2024, a year-over-year increase of 2.94%, with a net profit of 57.32 billion RMB, up 4.76% year-over-year [2]. - The operator network revenue decreased by 8.61% to 372.96 billion RMB, while the government enterprise business saw a significant growth of 56.09% to 91.72 billion RMB, driven by demand in various sectors [2]. - The consumer business revenue increased by 14.28% to 160.19 billion RMB, supported by growth in home terminal and mobile product sales [2]. - The company is focusing on cost reduction and efficiency improvements, leading to a slight increase in net profit margin to 9.14% [2]. - The chairman emphasized that growth remains the company's top priority for 2024, with a focus on emerging fields such as 5G-A and AI [3]. Financial Summary - The company is projected to achieve net profits of 104.93 billion RMB, 119.54 billion RMB, and 135.37 billion RMB for the years 2024, 2025, and 2026, respectively, with year-over-year growth rates of 12.51%, 13.93%, and 13.24% [4]. - Earnings per share (EPS) are expected to be 2.19 RMB, 2.50 RMB, and 2.83 RMB for the same years, with corresponding price-to-earnings (P/E) ratios of 12, 10, and 9 [4]. - The company’s dividend per share (DPS) is projected to increase to 0.80 RMB, 0.90 RMB, and 1.00 RMB over the next three years, with dividend yields of 3.12%, 3.51%, and 3.90% [4].