China Unicom(SH:600050) Haitong Securities·2024-10-25 03:09Investment Rating - The investment rating for China Unicom is "Outperform the Market" and is maintained [2] Core Views - The report highlights that China Unicom's revenue for the first three quarters reached 290.12 billion yuan, a year-on-year increase of 2.99%, with a net profit of 18.973 billion yuan, up 9.59% year-on-year [6] - The company has shown strong growth in its computing and cybersecurity businesses, with cloud revenue increasing by 19.5% year-on-year [6] - The operating cash flow has improved, with a net cash flow of 58.251 billion yuan for the first three quarters, narrowing the decline from the previous year [6] - The report projects steady revenue growth for the company, with expected revenues of 387.82 billion yuan, 403.44 billion yuan, and 418.10 billion yuan for 2024, 2025, and 2026 respectively [7] Summary by Sections Financial Performance - For Q3, the revenue was 92.782 billion yuan, a year-on-year increase of 3.25%, and the net profit was 5.223 billion yuan, up 7.54% year-on-year [6] - The gross profit margin for the first three quarters was 26.02%, an increase of 0.84 percentage points year-on-year [6] - The number of mobile users increased by 11.23 million to 345 million, with 5G package users reaching 286 million, a penetration rate of 83% [6] Revenue and Profit Forecast - The report forecasts a double-digit growth in total profit for the year, with a projected dividend yield of 5.8% for H shares and 2.5% for A shares [7] - The expected net profit for 2024 is 9.042 billion yuan, with a year-on-year growth of 10.6% [8] Valuation - The report assigns a price-to-book (PB) ratio of 1.4 to 1.6 for 2024, suggesting a reasonable value range of 7.20 yuan to 8.23 yuan per share [7] - The average P/E ratio for comparable companies is noted to be around 16 for 2024 [9]