SINOLINK SECURITIES·2025-10-21 08:54Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [5]. Core Insights - The company reported a revenue of 794.67 billion yuan for the first three quarters of 2025, a year-on-year increase of 0.41%, and a net profit attributable to shareholders of 115.35 billion yuan, up 4.0% year-on-year [2]. - In Q3 2025, the company achieved a revenue of 250.90 billion yuan, reflecting a year-on-year growth of 2.53%, with a net profit of 31.12 billion yuan, an increase of 1.43% year-on-year [2]. - The company's main business revenue in Q3 2025 reached 216.20 billion yuan, slightly outperforming the industry, which saw a decline in telecom revenue in July and August [3]. - The company has launched an "AI+" action plan, aiming to double its investment in AI by the end of 2028 and establish the largest and most advanced intelligent computing infrastructure in the country [4]. Summary by Sections Performance Review - For the first three quarters of 2025, the company achieved a revenue of 794.67 billion yuan, with a net profit of 115.35 billion yuan, showing a slight increase compared to the previous year [2]. - The Q3 revenue was 250.90 billion yuan, with a net profit of 31.12 billion yuan, indicating stable growth [2]. Operational Analysis - The company's EBITDA for the first three quarters of 2025 was 265.40 billion yuan, a year-on-year increase of 0.9%, with an EBITDA margin of approximately 33.4%, up 0.2 percentage points [3]. - The gross margin in Q3 2025 was 29.94%, down 0.88 percentage points year-on-year, primarily due to a decline in ARPU from traditional businesses and ongoing investments in emerging sectors [3]. Future Outlook - The company forecasts revenues of 1,084.54 billion yuan, 1,129.32 billion yuan, and 1,176.47 billion yuan for 2025, 2026, and 2027, respectively, with net profits projected at 145.33 billion yuan, 152.07 billion yuan, and 159.47 billion yuan [5]. - The report highlights the potential for high growth in AI and emerging businesses, despite short-term pressures on margins due to increased costs [4].