CHINA TELECOM(SH:601728) Dongguan Securities·2025-04-09 08:53Investment Rating - The report maintains a "Buy" rating for China Telecom (601728) [3][9] Core Views - The company achieved steady growth in its annual performance, with a focus on shareholder returns [3] - In 2024, the company reported operating revenue of 523.57 billion yuan, a year-on-year increase of 3.1%, and a net profit attributable to shareholders of 33.01 billion yuan, up 8.4% year-on-year [4][7] - The mobile communication service revenue reached 202.5 billion yuan, growing by 3.5%, with mobile value-added and application revenue increasing by 16.1% [7] - The company emphasizes digital transformation, achieving significant growth in its industrial digitalization revenue, which reached 146.6 billion yuan, a 5.5% increase [7] - The company is committed to enhancing core technology and innovation, with a 72% cash distribution of profits to shareholders in 2024, reflecting an 11.4% increase in total dividends [7] Summary by Sections Financial Performance - In 2024, total operating revenue was 523.57 billion yuan, with service revenue at 482.03 billion yuan, marking a 3.5% increase [4][8] - The net profit attributable to shareholders was 33.01 billion yuan, with a basic earnings per share (EPS) of 0.36 yuan [4][8] Business Segments - Mobile business revenue reached 202.5 billion yuan, with a user base of 425 million and an ARPU of 45.6 yuan [7] - Fixed-line and smart home services generated 125.7 billion yuan, with broadband users totaling 197 million and an ARPU of 47.6 yuan [7] Future Outlook - The company forecasts EPS of 0.39 yuan and 0.42 yuan for 2025 and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 21 and 20 [7][8]