HTSC·2025-10-21 05:53Investment Rating - The report maintains a "Buy" rating for the company [6][10] Core Views - The company demonstrates steady operational progress with a significant growth in AI direct revenue, reflecting its resilience and competitiveness as a leading global telecom operator [1][5] - The personal market is further deepening customer operations, with the family market showing a positive trend in both volume and pricing [2] - The DICT business has achieved good growth, and AI direct revenue continues to grow rapidly, indicating a shift towards large-scale application and commercialization of AI [3] Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported a revenue of RMB 794.67 billion, a year-on-year increase of 0.4%, and a net profit of RMB 115.35 billion, up 4.0% year-on-year [1] - In Q3 2025, revenue reached RMB 250.90 billion, with a year-on-year growth of 2.5%, and net profit was RMB 31.12 billion, reflecting a 1.4% increase year-on-year [1][12] Market Development - The company has strengthened its market segmentation and deepened its existing customer operations, achieving a mobile customer base of 1.009 billion and an ARPU of RMB 48.0 [2] - The family market continues to perform well, with a broadband user base of 329 million and a comprehensive ARPU growth of 2.8% to RMB 44.4 [2] Profitability and Efficiency - The company has improved its operational efficiency through lean management and AI empowerment, with a net profit margin increase of 0.5 percentage points to 14.52% and ROE rising by 0.14 percentage points to 8.44% [4] - Cost management has led to a decrease in network operation costs, depreciation, and sales expenses by 0.6%, 1.5%, and 2.5% respectively [4] Future Outlook - The company is expected to maintain profit growth, with projected net profits of RMB 145.4 billion, RMB 152.5 billion, and RMB 159.8 billion for 2025, 2026, and 2027 respectively [5][10] - The target price for A shares is set at RMB 126.20, based on a PB of 1.9 times for 2025, while the target price for H shares is set at HKD 100.02, based on a PB of 1.38 times for 2025 [5][10]