China Unicom(SH:600050) GUOTAI HAITONG SECURITIES·2025-08-13 07:26Investment Rating - The investment rating for China Unicom is "Accumulate" with a target price of 7.59 CNY [6][12]. Core Insights - The company continues to optimize its cost structure and enhance operational efficiency, with a focus on R&D investments in AI and computing power, laying a solid foundation for high-quality development [2]. - In the first half of 2025, the company achieved steady revenue growth, with total operating income reaching 200.2 billion CNY (YoY +1.5%) and net profit attributable to shareholders at 6.349 billion CNY (YoY +5.1%) [12]. - The intelligent computing business has become a core growth engine, contributing 45.4 billion CNY in revenue, accounting for 26% of total operating income [12]. - The company has effectively controlled capital expenditures, which decreased by 15% year-on-year, while increasing R&D expenses by 15.6% to 3.46 billion CNY [12]. Financial Summary - Total operating revenue is projected to grow from 372.6 billion CNY in 2023 to 439.4 billion CNY in 2027, with a CAGR of approximately 4.9% [5]. - Net profit attributable to shareholders is expected to increase from 8.17 billion CNY in 2023 to 11.24 billion CNY in 2027, reflecting a CAGR of about 9.2% [5]. - The earnings per share (EPS) is forecasted to rise from 0.26 CNY in 2023 to 0.36 CNY in 2027 [5]. - The return on equity (ROE) is anticipated to improve from 5.1% in 2023 to 6.2% in 2027 [5]. Business Performance - The intelligent computing business has shown strong momentum, with cloud revenue reaching 37.6 billion CNY and data center revenue growing by 9.4% to 14.4 billion CNY [12]. - The connectivity business remains stable, with revenue of 131.9 billion CNY and a user base exceeding 480 million, marking a net increase of over 11 million users in the first half of 2025 [12]. - The company has maintained a stable average revenue per user (ARPU) while achieving high-quality user growth [12].