China Unicom(SH:600050) Great Wall Securities·2024-10-28 03:15Investment Rating - The report maintains a "Buy" rating for China Unicom, expecting a price increase of over 15% relative to the industry index in the next six months [9] Core Views - China Unicom's revenue for the first three quarters of 2024 reached 290.12 billion yuan, a year-on-year increase of 3.0%, while the net profit attributable to shareholders was 8.34 billion yuan, up 10.0% year-on-year [1] - The company is experiencing rapid growth in its computing power business, with cloud revenue reaching 43.86 billion yuan, a 19.5% increase year-on-year [2] - The company is accelerating the construction of new infrastructure, with 5G mid-frequency base stations reaching 1.36 million and 4G mid-frequency shared base stations exceeding 2 million [2] - The adjustment of the depreciation period for 4G equipment from 7 years to 10 years is expected to reduce fixed asset depreciation by 1.1 to 1.2 billion yuan in 2024 [2] Financial Performance - For 2022A, the total revenue was 354.94 billion yuan, with a projected revenue of 400.17 billion yuan for 2024E, reflecting a growth rate of 7.4% [1][4] - The net profit attributable to shareholders is projected to grow from 9.30 billion yuan in 2024E to 12.15 billion yuan in 2026E, with a compound annual growth rate of 14.5% [1][4] - The latest diluted EPS is expected to increase from 0.29 yuan in 2024E to 0.38 yuan in 2026E [1][4] User Growth and Market Position - As of Q3 2024, China Unicom's mobile users reached 345 million, with a net increase of 11.23 million users for the year, marking the highest growth in six years [2] - The penetration rate of 5G package users reached 83%, with 286 million users, indicating a continuous optimization of the user structure [2] Infrastructure Development - The company is enhancing its mobile internet coverage and has established high-performance computing centers in various locations, supporting the "East Data West Computing" initiative [2] - The construction of the AINet aims to meet the demand for high-throughput and high-performance data transmission [2]