Minsheng Securities·2025-08-10 12:06Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Insights - The company's operating performance is stable, with a slight revenue decline of 0.5% year-on-year, totaling CNY 543.77 billion in the first half of 2025. However, the net profit attributable to shareholders increased by 5.0% year-on-year to CNY 84.24 billion [1][2]. - The revenue structure shows steady growth across various business segments, with notable increases in the enterprise market and emerging markets, while the personal market experienced a slight decline [2][3]. - The company is focusing on AI+ initiatives, enhancing its capabilities in intelligent computing and developing industry-specific models across various sectors [3]. Revenue and Profit Forecast - The projected net profits for the company are CNY 145.84 billion, CNY 153.95 billion, and CNY 162.68 billion for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 16x, 15x, and 15x [4][5]. - The expected revenue growth rates for the upcoming years are 4.4% in 2025, 4.6% in 2026, and 4.7% in 2027 [5][10]. Business Segment Performance - In the personal market, revenue was CNY 244.73 billion, a decrease of 4.1%, while the enterprise market saw a revenue increase of 5.6% to CNY 118.2 billion [2][3]. - The family market's revenue grew by 7.4% to CNY 74.99 billion, with broadband services contributing significantly [2][3]. - Emerging markets reported a revenue increase of 9.3%, reaching CNY 29.08 billion, indicating a positive trend in new business areas [2][3]. AI+ Strategy - The company is enhancing its AI capabilities, with a total intelligent computing scale of 61.3 EFLOPS and a focus on developing over 50 industry-specific models [3]. - The AI+DICT signed projects reached 1,485, demonstrating the company's commitment to integrating AI across various sectors [3]. Dividend and Capital Expenditure - The interim dividend for 2025 is set at HKD 2.75 per share, reflecting a 5.8% increase year-on-year, with plans for a higher cash distribution ratio in 2025 compared to 2024 [2][3]. - Capital expenditure for the first half of 2025 was CNY 58.4 billion, with a full-year plan not exceeding CNY 151.2 billion, indicating a focus on efficient capital allocation [2][3].