China Unicom(SH:600050) Tianfeng Securities·2024-10-24 00:38Investment Rating - The investment rating for the company is "Accumulate" [6] Core Views - The company has maintained double-digit profit growth in the first three quarters of 2024, with total revenue reaching 290.12 billion yuan, a year-on-year increase of 3.0%, and net profit attributable to the parent company at 8.34 billion yuan, up 10.0% year-on-year [3][5] - The company is focusing on enhancing its digital infrastructure, with significant advancements in mobile internet coverage and the establishment of high-performance computing centers [2] - The company is expected to continue its trend of increasing shareholder returns, with planned interim dividends for 2024 showing a year-on-year growth of 22.2% for Hong Kong red-chip companies and 20.5% for A-shares [2] Financial Data and Valuation - Revenue (in million yuan) is projected to grow from 372,596.79 in 2023 to 422,925.70 in 2026, with growth rates of 4.97%, 3.84%, 4.89%, and 4.22% respectively [8] - EBITDA (in million yuan) is expected to decline slightly from 100,875.59 in 2023 to 99,869.30 in 2024, before increasing to 112,978.03 in 2026 [8] - Net profit attributable to the parent company (in million yuan) is forecasted to increase from 8,172.68 in 2023 to 11,074.78 in 2026, with growth rates of 11.96%, 11.26%, 10.51%, and 10.21% respectively [8] - Earnings per share (EPS) is projected to rise from 0.26 in 2023 to 0.35 in 2026 [8] - The price-to-earnings ratio (P/E) is expected to decrease from 20.00 in 2023 to 14.76 in 2026, indicating a more attractive valuation over time [8] Business Segments - The company's connectivity business is showing steady improvement, with mobile users reaching 345 million, and a net increase of 11.23 million users in the year, marking the highest growth in six years [4] - The computing and intelligence business is expanding rapidly, with cloud revenue reaching 43.86 billion yuan, a year-on-year increase of 19.5% [4] - The company is actively enhancing its 5G and industrial internet services, with a total of 14,013 clients served in the 5G industry virtual private network segment [4]