China Unicom(SH:600050) Changjiang Securities·2025-09-02 09:45Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - In Q2 2025, the company's revenue performance was mainly affected by non-core business, while profit showed steady growth. The business structure continues to optimize, with an expanding connectivity scale and strong momentum in computing power business. The company's accounts receivable and credit impairment growth have significantly narrowed, free cash flow has rebounded notably, and mid-term dividends have shown impressive growth. The company aims to achieve robust growth in operating revenue, profit, and return on equity for the full year 2025 [2][12]. Summary by Relevant Sections Financial Performance - In H1 2025, the company achieved operating revenue of 200.2 billion yuan, a year-on-year increase of 1.5%, and a net profit attributable to shareholders of 6.35 billion yuan, up 5.1% year-on-year. In Q2 2025, the company reported revenue of 96.8 billion yuan, a decline of 1.0% year-on-year, with service revenue of 87.5 billion yuan, up 1.0%, and sales of communication products down 16.5% to 9.4 billion yuan [6][12]. Business Structure and Growth - The business structure is continuously optimizing, with connectivity revenue reaching 131.9 billion yuan in H1 2025. The revenue from intelligent network services reached 45.4 billion yuan, accounting for 26% of total revenue. International business revenue grew by 11% to 6.8 billion yuan, and strategic emerging industries accounted for 86% of total revenue. The total number of connected users surpassed 1.2 billion, with net additions of over 11 million mobile and broadband users [12]. Computing Power Business - The computing power business is showing strong momentum, with the company's cloud revenue reaching 37.6 billion yuan, a year-on-year increase of 4.6%. The revenue from data center services (IDC) grew by 9.4% to 14.4 billion yuan, with a 60% year-on-year increase in signed contracts for AIDC. The data center capacity reached 2,650 MW, and the total computing power scale reached 30 EFLOPS [12]. Cash Flow and Dividends - As of H1 2025, the company's accounts receivable expanded to 71.5 billion yuan, with credit impairment losses of 8.08 billion yuan, both showing significantly narrowed growth. Free cash flow increased by 63.1% year-on-year, and the mid-term dividend per share was 0.2841 yuan, up 14.5% year-on-year, with a mid-term payout ratio of 60%, reflecting a notable performance [12]. Future Outlook - The company maintains its guidance for strong growth in operating revenue, profit, and return on equity for 2025. The projected net profit attributable to shareholders for 2025-2027 is 9.6 billion yuan, 10.1 billion yuan, and 10.7 billion yuan, corresponding to year-on-year growth rates of 6.4%, 5.6%, and 5.3%, respectively [12].