SINOLINK SECURITIES·2025-08-08 01:17Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [5][13]. Core Insights - The company reported a revenue of 543.769 billion yuan for the first half of 2025, a slight decrease of 0.5% year-on-year, while the net profit attributable to shareholders was 84.235 billion yuan, reflecting a growth of 5.0% [2]. - The company has increased its interim dividend to 2.75 HKD per share, a rise of 5.8%, which outpaces the net profit growth rate [3]. - The gross margin improved to 31.6% in the first half of 2025, up by 0.8 percentage points year-on-year, driven by a higher proportion of high-margin emerging businesses [3]. - The company is investing heavily in AI infrastructure, with a cash outflow of 134.2 billion yuan in investment activities, marking a 57% increase year-on-year [4]. - Revenue projections for 2025, 2026, and 2027 are estimated at 1,084.541 billion yuan, 1,129.317 billion yuan, and 1,176.473 billion yuan respectively, with net profits expected to be 145.328 billion yuan, 152.070 billion yuan, and 159.466 billion yuan [5][10]. Summary by Sections Performance Review - In Q2 2025, the company achieved a revenue of 280.009 billion yuan, down 1.07% year-on-year, while net profit was 53.604 billion yuan, up 5.95% [2]. Operational Analysis - The company is expected to increase its dividend payout ratio to over 75% in the next three years, enhancing its attractiveness in a low-interest-rate environment [3]. - The digital transformation revenue reached 156.9 billion yuan, growing by 6.6% year-on-year, accounting for 33.6% of total revenue [3]. Strategic Investments - The total AI computing power reached 61.3 EFLOPS, with self-built computing power at 33.3 EFLOPS, an increase of 4.1 EFLOPS from the end of 2024 [4]. Profit Forecast and Valuation - The company's current stock price corresponds to a PE ratio of 16.77 for 2025, 16.03 for 2026, and 15.28 for 2027, indicating a favorable valuation [5].