CHINA TELECOM(601728) 中原证券·2025-04-02 12:23Investment Rating - The report maintains a "Buy" rating for China Telecom, indicating an expected increase of over 15% relative to the CSI 300 index in the next six months [10][18]. Core Insights - China Telecom's revenue for 2024 reached 523.57 billion yuan, a year-on-year increase of 3.1%, with a net profit of 33.01 billion yuan, up 8.4% year-on-year [5]. - The company is experiencing steady growth in its core business and digital services, with a significant focus on enhancing its cloud services through the Tianyi Cloud platform [10]. - The company plans to distribute a total dividend of 0.2598 yuan per share for 2024, representing 72% of its net profit attributable to shareholders, with an aim to increase this to over 75% in the next three years [10]. Summary by Sections Financial Performance - In Q4 2024, China Telecom achieved a revenue of 131.60 billion yuan, reflecting a 3.84% year-on-year growth, and a net profit of 3.71 billion yuan, which is an 11.01% increase year-on-year [5]. - The mobile communication service revenue for 2024 was 202.5 billion yuan, up 3.5% year-on-year, with mobile value-added services growing by 16.1% [8]. Business Segments - The digital services segment generated 146.6 billion yuan in revenue, a 5.5% increase, with Tianyi Cloud revenue reaching 113.9 billion yuan, up 17.1% [8]. - The company is enhancing its AI capabilities and has launched various innovative products, including AI cameras and cloud computers, to maintain a competitive edge [8]. Cost Management and Capital Expenditure - Operating costs for 2024 were 373.5 billion yuan, a 3.3% increase, with a focus on improving service quality and investing in strategic emerging businesses [10]. - Capital expenditure for 2024 was 93.5 billion yuan, down 5.4% year-on-year, with a projected decrease to 83.6 billion yuan in 2025 [10][9]. Future Projections - The report forecasts net profits of 35.62 billion yuan, 38.19 billion yuan, and 40.80 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 20.06X, 18.71X, and 17.52X [10].