China Unicom(600050) 招商证券·2025-03-19 04:34Investment Rating - The report maintains a "Strong Buy" investment rating for China Unicom [2][7]. Core Insights - In 2024, China Unicom achieved revenue of 389.6 billion yuan, a year-on-year increase of 4.6%, with net profit reaching 9 billion yuan, reflecting a growth of 10.5% [6][7]. - The company is focusing on enhancing its integrated communication and intelligent computing services, with significant growth in its cloud and IDC businesses [6][7]. - Capital expenditures (Capex) are being managed effectively, with a projected decrease in Capex for 2025 to 55 billion yuan, down 10% year-on-year [6][7]. Financial Performance - Revenue for 2024 was 389.6 billion yuan, with a year-on-year growth of 4.6% [6]. - The net profit for 2024 was 9 billion yuan, showing a year-on-year increase of 10.5% [6]. - The company reported a free cash flow of 29.9 billion yuan in 2024, maintaining stability [6]. Business Segments - The integrated communication segment accounted for approximately 76% of service revenue, generating 263.6 billion yuan, a year-on-year increase of 1.5% [6]. - The intelligent computing segment contributed 24% to service revenue, achieving 82.4 billion yuan, with a year-on-year growth of 24% [6]. Shareholder Returns - The dividend per share for A-shares was 0.16 yuan in 2024, reflecting a year-on-year increase of 19.7%, with a payout ratio of 55% [7]. - For H-shares, the total dividend was 0.40 yuan, with a payout ratio of 60% [7]. Future Projections - The projected net profits for 2025, 2026, and 2027 are 9.8 billion yuan, 10.5 billion yuan, and 11.2 billion yuan, respectively, with corresponding PE ratios of 19.8, 18.5, and 17.3 [7][8].