China Unicom(600050) 长江证券·2024-11-12 03:00Investment Rating - The report maintains a "Buy" rating for China Unicom [7][5] Core Insights - In Q3 2024, China Unicom demonstrated solid performance with steady revenue growth and improved profitability. The company aims for stable revenue growth and double-digit profit growth for the full year [5][3] - The company's operating revenue for Q1-Q3 2024 reached 290.1 billion yuan, a year-on-year increase of 3.0%, with a net profit attributable to shareholders of 8.3 billion yuan, up 10.0% year-on-year [2][3] - The cash flow situation has significantly improved, with expectations for a notable reduction in accounts receivable in Q4 2024 [4][5] Summary by Sections Revenue and Profitability - For Q3 2024, the company achieved operating revenue of 92.8 billion yuan, a 3.3% increase year-on-year, and a net profit of 2.3 billion yuan, up 7.7% year-on-year [3][4] - The communication service revenue for Q1-Q3 2024 was 258.8 billion yuan, growing by 2.5% year-on-year [3] User Growth - The mobile user base reached 345 million, with a net increase of 11.23 million users, the highest in nearly six years. The penetration rate of 5G packages rose to 83% [3][4] - The fixed broadband user count reached 121 million, with a net increase of 7.12 million users [3] Cloud and Computing Business - Revenue from cloud services reached 43.86 billion yuan, a year-on-year increase of 19.5%. The data center revenue was 19.69 billion yuan, up 6.8% year-on-year [4] - The company is enhancing its 5G+ industrial internet brand influence, with 14,013 customers served by its 5G industry virtual private network [4] Cash Flow and Depreciation - Operating cash flow for Q3 2024 was 28.1 billion yuan, showing significant improvement compared to previous quarters [4] - The company plans to extend the depreciation period for 4G equipment from 7 years to 10 years, which is expected to reduce depreciation expenses by approximately 1.1 to 1.2 billion yuan in 2024 [5]