中国联通：联网业务稳健，算力快速发展

Investment Rating - The investment rating for the company is "Buy" with a target price set at 5.14 CNY per share, maintaining the previous rating of "Buy" [1]. Core Insights - The company's revenue for the first three quarters of 2024 reached 290.12 billion CNY, representing a year-on-year growth of 3.0%, while the net profit attributable to shareholders was 8.34 billion CNY, up 10.0% year-on-year [1]. - The communication business remains stable, with a significant increase in mobile users, reaching 345 million, marking a net addition of 11.23 million users [1]. - The computing power business is rapidly developing, with revenue from cloud services increasing by 19.5% year-on-year to 43.86 billion CNY [1][2]. Summary by Sections Financial Performance - For Q3 2024, the company reported revenue of 92.78 billion CNY, a 3.3% increase year-on-year, and a net profit of 2.30 billion CNY, up 7.8% year-on-year [1]. - The gross margin for the first three quarters was 26.0%, a slight increase of 0.8 percentage points year-on-year, while the net margin was 6.5%, up 0.4 percentage points [1]. Business Segments - The mobile user base saw a net increase of 11.23 million, with 5G package users reaching 286 million, resulting in a penetration rate of 83% [1]. - The Internet of Things (IoT) connections reached 594 million, with a net increase of nearly 100 million [1]. - The revenue from the industrial internet business was 60.69 billion CNY, accounting for 24.0% of total revenue, reflecting a year-on-year increase of 1.8 percentage points [1]. Management and Efficiency - The company has improved its management efficiency, with a decrease in the expense ratio to 16.6%, down 0.5 percentage points year-on-year [1]. - Research and development expenses increased by 0.4 percentage points to 1.9% of total revenue, indicating a commitment to innovation [1]. Cash Flow and Receivables - Operating cash flow for the first three quarters was 58.25 billion CNY, a decline of 14.0% year-on-year, attributed to an increase in accounts receivable [2]. - Accounts receivable and payable increased by 20.6% and 4.2% year-on-year, respectively, indicating a shift in the company's business model towards more B2B transactions [2]. Future Outlook - The revenue forecast for 2024-2026 has been adjusted, with expected revenues of 387.61 billion CNY, 403.93 billion CNY, and 421.50 billion CNY, respectively [3]. - The earnings per share (EPS) estimates have been revised to 0.28 CNY, 0.31 CNY, and 0.35 CNY for the same period [3].