China Unicom(600050) 华泰证券·2025-03-19 10:30Investment Rating - The investment rating for the company is "Buy" for H-shares and "Accumulate" for A-shares, both maintained [6][34]. Core Views - The company reported a revenue of RMB 389.59 billion for 2024, a year-on-year increase of 4.56%, and a net profit attributable to shareholders of RMB 9.03 billion, up 10.5% year-on-year, aligning with previous profit forecasts [1][5]. - The dividend per share for 2024 is set at RMB 0.41, reflecting a 20.1% increase, with a payout ratio of 60%, up 5 percentage points year-on-year [1][5]. - The launch of DeepSeek is expected to enhance revenue growth in cloud computing and data center businesses, marking a new development cycle for the company [1][4]. Summary by Sections Business Performance - The total number of mobile and broadband users reached 470 million, with a net increase of 19.52 million users. Revenue from connectivity services grew by 1.5% year-on-year, maintaining a solid performance [2]. - Cloud revenue reached RMB 68.6 billion, a 17.1% increase year-on-year, while data center revenue was RMB 25.9 billion, up 7.4% year-on-year [2]. - The company is constructing large-scale intelligent computing centers in Hohhot and Shanghai, with plans for multiple integrated hubs [2]. Financial Metrics - The company's return on equity (ROE) improved by 0.4 percentage points to 5.8%, and the net profit margin increased by 0.27 percentage points to 5.29% due to enhanced operational efficiency [3]. - Capital expenditures decreased by 17% year-on-year to RMB 61.37 billion, while investments in intelligent computing increased by 19% [3]. - The projected capital expenditure for 2025 is RMB 55 billion, with a 28% increase in intelligent computing investments [3]. Profitability Outlook - The company anticipates continued profit growth, with projected net profits for 2025-2027 at RMB 10.06 billion, RMB 11.07 billion, and RMB 12.02 billion respectively [4]. - The target price for A-shares is set at RMB 7.62, based on a price-to-book (PB) ratio of 1.31 for 2025, while H-shares are targeted at HKD 13.46 with a PB of 1.0 [4][12].