EBSCN·2025-08-08 08:01Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock in the coming 6-12 months [4]. Core Views - The company reported a slight decline in revenue for the first half of 2025, with total revenue at RMB 543.8 billion, down 0.54% year-on-year, while the main business revenue grew by 0.7% to RMB 467.0 billion [1]. - Net profit attributable to shareholders increased by 5.0% to RMB 84.2 billion, and EBITDA rose by 2.0% to RMB 186.0 billion, reflecting improved profitability [1][3]. - The company is focusing on AI-driven growth, with significant investments in AI infrastructure and a robust service system for various industries, leading to a substantial increase in AI-related revenue [3]. Summary by Sections Financial Performance - In H1 2025, the company achieved a net profit of RMB 84.2 billion, a 5.0% increase year-on-year, and an EBITDA of RMB 186.0 billion, up 2.0% [1][3]. - The operating profit for the same period was RMB 106.3 billion, reflecting a 3.7% growth compared to the previous year [3]. Revenue Breakdown - Personal market revenue was RMB 244.7 billion, down 4.1% year-on-year, while the enterprise and government market revenue grew by 5.6% to RMB 118.2 billion [2]. - The family market saw a revenue increase of 7.4% to RMB 75.0 billion, with a total of 284 million broadband customers [2]. AI Development - The company has established large-scale AI computing centers and signed 1,485 AI+DICT projects, indicating a strong commitment to AI integration across various sectors [3]. Future Projections - The report forecasts net profits for 2025, 2026, and 2027 to be RMB 146.0 billion, RMB 152.3 billion, and RMB 158.7 billion respectively, with corresponding P/E ratios of 16X, 15X, and 15X [4][5].