CHINA TELECOM(601728) 招商证券·2025-03-26 14:02Investment Rating - The report maintains a "Strong Buy" rating for the company [4][18]. Core Views - The company achieved a revenue of 523.6 billion yuan in 2024, representing a year-over-year growth of 3.1%, with a net profit of 33 billion yuan, up 8.4% year-over-year [8][18]. - The mobile communication service revenue reached 202.5 billion yuan, growing by 3.5% year-over-year, with a mobile user base of 425 million [2][8]. - The company is advancing its AI initiatives and has completed its AI layout, enhancing its service capabilities through the "Xirang" platform [9][18]. Summary by Sections Financial Performance - In 2024, the company reported total revenue of 523.6 billion yuan, with a net profit of 33 billion yuan and EBITDA of 140.8 billion yuan [8][18]. - The fourth quarter of 2024 saw a revenue of 131.6 billion yuan, marking a year-over-year increase of 3.8% [8]. Business Segments - Mobile Communication Services: Revenue of 202.5 billion yuan, with a net addition of 17 million mobile users and 351 million 5G package users, achieving a penetration rate of 82.8% [2][8]. - Fixed-line and Smart Home Services: Revenue of 125.7 billion yuan, with a stable ARPU of 47.6 yuan [2][8]. - Industrial Digitalization: Revenue of 146.6 billion yuan, with a significant growth in Tianyi Cloud revenue, which reached 113.9 billion yuan, up 17.1% year-over-year [3][8]. Capital Expenditure and Future Outlook - The company plans to reduce capital expenditure by 10.6% in 2025, with a focus on flexible adjustments based on market demand [9][10]. - The projected net profit for 2025 is 35.4 billion yuan, with a corresponding PE ratio of 19.8 [11][18]. Cash Flow and Dividends - Free cash flow reached 22.2 billion yuan, showing a year-over-year increase of 70.7% [18]. - The company plans to maintain a dividend payout ratio of over 75% in the next three years, with a dividend per share of 0.26 yuan in 2024 [18].