Changjiang Securities·2024-08-23 07:42Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company achieved a service revenue growth rate higher than the industry average, with impressive profit growth, indicating a continuous trend towards high-quality development. The basic business remains stable, with both mobile and fixed-line ARPU continuing to grow. Tianyi Cloud is experiencing rapid growth and has entered a new development phase in intelligent cloud services. Capital expenditure remains in line with initial guidance, and the mid-term dividend payout ratio has shown significant improvement [6][7]. Summary by Sections Financial Performance - In H1 2024, the company reported revenue of 266 billion yuan, a year-on-year increase of 2.8%. The net profit attributable to shareholders was 21.8 billion yuan, up 8.2% year-on-year. For Q2 2024, revenue reached 131.5 billion yuan, a 2.0% increase, with communication service revenue at 121.9 billion yuan, growing 3.7% year-on-year [6][7]. Service Revenue and ARPU - The company's communication service revenue grew by 4.3% year-on-year in H1 2024, outperforming the industry. Mobile communication service revenue increased by 3.6%, while fixed-line and smart home service revenue rose by 3.2%. Mobile ARPU reached 46.3 yuan, a 0.2% increase, and broadband ARPU was 48.3 yuan, also up 0.2% [6][7]. Tianyi Cloud Development - Tianyi Cloud's revenue was 55.2 billion yuan, reflecting a year-on-year growth of 20.4%. The company has entered a new phase of intelligent cloud development, marked by the launch of the "Xirang" computing scheduling platform, enhancing its integrated intelligent computing service capabilities [6][7]. Capital Expenditure and Dividends - The company completed capital expenditures of 47.2 billion yuan in H1 2024, a 13.5% increase year-on-year, while maintaining a full-year CAPEX guidance of 96 billion yuan, a decrease of 2.9%. The mid-term dividend per share increased by 16.7%, with the H-share payout ratio exceeding 70%, up more than 5 percentage points year-on-year [6][7]. Future Outlook - The company aims to achieve good growth in revenue and EBITDA for the full year, with net profit growth expected to exceed revenue growth. Forecasts for net profit attributable to shareholders for 2024-2026 are 33 billion yuan, 35.5 billion yuan, and 37.7 billion yuan, corresponding to year-on-year growth rates of 8.4%, 7.4%, and 6.4% respectively [6][7].