Haitong Securities·2024-10-22 09:12Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company reported a revenue of 900.45 billion yuan for the first three quarters, a year-on-year increase of 0.73%, with a net profit attributable to shareholders of 79.06 billion yuan, up 0.83% year-on-year [5] - The third quarter revenue was 275.57 billion yuan, down 3.94% year-on-year, with a net profit attributable to shareholders of 21.74 billion yuan, down 8.23% year-on-year [5] - The company is focusing on enhancing its "connection + computing power" capabilities, with significant growth in consumer and government enterprise businesses, and continuous breakthroughs in international markets [5] Summary by Sections Financial Performance - For Q3, the gross margin was 40.35%, down 4.28 percentage points year-on-year, and the net profit margin was 7.89%, a decrease of 0.37 percentage points year-on-year [5] - The company expects revenues of 1297.33 billion yuan, 1407.09 billion yuan, and 1537.17 billion yuan for 2024, 2025, and 2026 respectively, with net profits of 96.33 billion yuan, 102.22 billion yuan, and 114 billion yuan for the same years [5][6] Business Segments - The operator network segment is projected to generate revenues of 786.21 billion yuan in 2024, with a gross margin of 49.21% [8] - The terminal segment is expected to see revenues of 320.95 billion yuan in 2024, with a gross margin of 22.50% [8] - The government enterprise business is forecasted to achieve revenues of 190.17 billion yuan in 2024, with a gross margin of 31.94% [8] Valuation - The company is assigned a PE ratio of 20-25 for 2024, leading to a reasonable value range of 40.28 yuan to 50.35 yuan per share [5]