China Unicom(SH:600050) CMS·2025-04-18 06:33Investment Rating - The report maintains a "Strong Buy" investment rating for China Unicom [4] Core Views - In Q1 2025, China Unicom achieved a revenue of 103.4 billion yuan, representing a year-over-year growth of 3.9%, and a net profit attributable to shareholders of 2.6 billion yuan, up 6.5% year-over-year [1][8] - The company continues to expand its computing power business, with a total intelligent computing scale exceeding 21 EFLOPS, meeting AI training and inference demands [8] - Strategic partnerships with major internet companies like Alibaba and Tencent are expected to enhance AI service capabilities and cloud business [8] Financial Data and Valuation - Revenue projections for the upcoming years are as follows: 2023: 372.6 billion yuan, 2024: 389.6 billion yuan, 2025E: 403.7 billion yuan, 2026E: 415.7 billion yuan, 2027E: 426.3 billion yuan, with growth rates of 5%, 5%, 4%, 3%, and 3% respectively [3][21] - Net profit forecasts for 2025, 2026, and 2027 are 9.8 billion yuan, 10.5 billion yuan, and 11.2 billion yuan, corresponding to PE ratios of 17.4, 16.2, and 15.2 respectively [8][22] - The company reported a total market capitalization of 170.1 billion yuan and a circulating market capitalization of 167.4 billion yuan [4] Operational Performance - As of Q1 2025, the company had 349 million mobile users and 124 million fixed broadband users, with a net increase of 4.78 million and 1.92 million users respectively [8] - The revenue from cloud and IDC services reached 19.7 billion yuan in Q1 2025, with IDC business revenue growing by 8.8% year-over-year [8] - The company’s operating cash flow for 2023 is projected at 104.3 billion yuan, with a net profit of 18.7 billion yuan [20]