Investment Rating - The report gives a "Strong Buy" investment rating for the company [4]. Core Views - The company is positioned as a leading provider of integrated smart services in the telecommunications sector, leveraging the AI model wave to ignite new growth engines [1][8]. - The company has a strong focus on shareholder returns, with a dividend payout ratio increasing from 36% to 42% over the past five years, and a significant cash reserve of 38.11 billion yuan as of the end of 2024 [8][24]. - The strategic focus on emerging industries, particularly in digital infrastructure, green low-carbon initiatives, smart cities, and emergency safety, has resulted in substantial growth, with new contracts in these areas exceeding 78 billion yuan in 2024, marking a 30% year-on-year increase [8][28]. - The company's profitability is on the rise, with a projected revenue of over 150 billion yuan in 2024 and a continuous improvement in gross margin from 11.03% in 2021 to 11.73% in 2024 [8][28]. Company Overview - The company is a major player in the telecommunications infrastructure sector, providing comprehensive services including planning, construction, and operational support [12]. - It operates under a diversified ownership structure, with significant stakes held by major telecommunications operators, ensuring stable governance and strategic alignment [22][24]. Business and Market - The company operates three main business segments: Telecommunications Infrastructure Services (TIS), Business Process Outsourcing (BPO), and Applications, Content, and Other Services (ACO) [28]. - In 2024, TIS is expected to contribute 75.17 billion yuan, accounting for 50.1% of total revenue, while BPO and ACO are projected to contribute 43.46 billion yuan and 31.37 billion yuan, respectively [28][31]. - The company serves various markets, including domestic telecommunications operators, enterprise customers, and international markets across Asia-Pacific, the Middle East, Africa, and Latin America [29]. Financial Analysis - The financial forecast indicates a steady increase in total revenue from 149.14 billion yuan in 2023 to 166.01 billion yuan by 2027, with a compound annual growth rate (CAGR) of approximately 4% [3]. - The net profit is projected to grow from 3.58 billion yuan in 2023 to 4.10 billion yuan in 2027, reflecting a consistent upward trend in profitability [3][8]. Emerging Strategic Industries - The company is actively expanding into strategic emerging industries, with a focus on digital infrastructure, which is expected to be a primary growth driver, particularly benefiting from the AI model wave [8][18]. - The company has secured 21 major projects in the digital infrastructure sector, which represents 51% of its new large-scale contracts [8].
中国通信服务：中国综合智慧服务龙头，AI大模型浪潮点燃增长新引擎-20250603