China Unicom(SH:600050) Zhongyuan Securities·2024-11-01 06:00Investment Rating - The report maintains a rating of "Accumulate" for China Unicom (600050) [1][4][12] 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%, with net profit attributable to shareholders at 8.34 billion yuan, up 10.0% year-on-year [1][4] - The company aims for steady revenue growth and double-digit profit growth in 2024, with a projected net profit of 9.00 billion yuan for 2024, increasing to 10.76 billion yuan by 2026 [4][5] - The report highlights the rapid development of cloud computing services, with revenue from cloud services reaching 43.86 billion yuan, a year-on-year increase of 19.5% [1][3] Summary by Sections Financial Performance - In Q3 2024, China Unicom achieved revenue of 92.78 billion yuan, a 3.3% increase year-on-year, and a net profit of 2.30 billion yuan, up 7.7% [1][4] - The company reported a gross margin of 26.02% for the first three quarters of 2024, an increase of 0.84 percentage points year-on-year [1][4] User Growth - The number of mobile users reached 345 million, with a net increase of 11.23 million users, marking the highest growth in six years [1][3] - The penetration rate of 5G package users reached 83%, with 286 million users [1][3] Capital Expenditure and Future Outlook - Future capital expenditures are expected to decrease as the company adjusts the depreciation period for equipment, which will enhance performance release capabilities [2][4] - The report anticipates a decline in the capital expenditure-to-revenue ratio, which is expected to improve the company's earnings release capacity [4][5] Dividend Policy - The company plans to distribute a mid-term dividend of 0.0959 yuan per share, reflecting a year-on-year increase of 20.5% [2][4]