Minsheng Securities·2024-10-22 09:38Investment Rating - The report maintains a "Recommended" rating for the company [2][3] Core Views - The company achieved operating revenue of 791.5 billion yuan in the first three quarters, a year-on-year increase of 2.0%, and a net profit attributable to shareholders of 110.9 billion yuan, up 5.1% year-on-year [2] - The third quarter saw a slight decline in operating revenue to 244.7 billion yuan, down 0.1% year-on-year, but net profit increased by 4.6% to 30.7 billion yuan [2] - The company’s cash flow improved significantly in Q3, with operating cash flow increasing by 20.2% year-on-year to 92.7 billion yuan [2] - The company is expanding its mobile and fixed-line customer base, with mobile users reaching 1.004 billion, a 1.4% increase year-on-year [2] - The company is accelerating its cloud business development, establishing a nationwide computing power network with 13 intelligent computing centers in key regions [2] Summary by Sections Financial Performance - For the first three quarters, the company reported a gross profit margin of 30.8%, an increase of 2.2 percentage points year-on-year [2] - The company’s return on equity (ROE) for Q3 was 2.3%, with a period expense ratio of 14.2%, up 1.8 percentage points year-on-year [2] - The projected net profit for 2024, 2025, and 2026 is estimated at 147.5 billion, 152.3 billion, and 168.5 billion yuan respectively, corresponding to PE ratios of 15, 15, and 13 times [2][3] Customer Base and Market Expansion - The mobile average revenue per user (ARPU) decreased slightly to 49.5 yuan, down 3.3% year-on-year, while the fixed broadband user base reached 314 million, a 1.6% increase [2] - The company is focusing on expanding its international business and enhancing its competitive advantage in content media [2] Cloud and Computing Business - The company has made significant progress in its cloud business, with a focus on integrated solutions in the government and enterprise markets [2] - The DICT business revenue has shown good growth, indicating a strong demand for integrated services [2]