CHINA TELECOM(601728) 长江证券·2025-03-27 15:17Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Insights - In 2024, the company achieved operating revenue of 523.6 billion yuan, a year-on-year increase of 3.1%, and a net profit attributable to shareholders of 33 billion yuan, up 8.4% year-on-year, successfully meeting its initial targets [6][11] - The company’s mobile ARPU continued to show positive growth, while fixed-line comprehensive ARPU remained stable year-on-year, indicating strong performance [2][11] - Emerging business segments, particularly intelligent revenue, experienced rapid growth, with significant contributions from computing power sales, model services, and token calls [2][11] - The company has planned a double-digit decline in CAPEX for 2025, with a structural shift towards computing power investments [2][11] - Cash flow performance was strong, with operating net cash flow and free cash flow both achieving positive growth, and the dividend payout ratio continued to increase [2][11] Summary by Sections Financial Performance - In 2024, the company reported total operating revenue of 523.6 billion yuan, a 3.1% increase year-on-year, and communication service revenue of 482 billion yuan, up 3.7% [11] - The net profit attributable to shareholders reached 33 billion yuan, reflecting an 8.4% year-on-year growth [6][11] - For Q4 2024, the company achieved operating revenue of 131.6 billion yuan, a 3.8% increase year-on-year, and a net profit of 3.7 billion yuan, up 11% [11] Business Segments - Mobile communication service revenue reached 202.5 billion yuan, growing 3.5% year-on-year, while fixed-line and smart home service revenue was 125.7 billion yuan, increasing by 2.1% [11] - Mobile ARPU was 45.6 yuan, up 0.4% year-on-year, and broadband comprehensive ARPU was 47.6 yuan, remaining stable [11] - Intelligent revenue surged to 8.9 billion yuan, marking a 195.7% increase year-on-year, with significant growth in cloud services and IDC revenue [11] Capital Expenditure and Cash Flow - The company completed capital expenditures of 93.5 billion yuan in 2024, a decrease of 5.4% year-on-year, and plans for 83.6 billion yuan in 2025, a 10.6% decline [11] - Operating net cash flow was 145.3 billion yuan, up 4.8% year-on-year, and free cash flow reached 51.8 billion yuan, a 30.1% increase [11] - The dividend payout ratio for 2024 was raised to 72%, with a target to increase it to over 75% within three years [11]