Haitong Securities International·2025-10-24 11:29Investment Rating - The report maintains an "Outperform" rating for the company [1][9]. Core Insights - The company is projected to achieve revenues of 1.08 trillion RMB, 1.13 trillion RMB, and 1.17 trillion RMB for the years 2025, 2026, and 2027 respectively, with net profits attributable to shareholders of 145.6 billion RMB, 153 billion RMB, and 160.2 billion RMB for the same years [1][9]. - The earnings per share (EPS) are expected to be 6.73 RMB, 7.07 RMB, and 7.41 RMB for 2025, 2026, and 2027 respectively [1][9]. - A valuation premium is assigned based on the company's superior asset structure and leading return on equity (ROE), with a projected price-to-book (PB) ratio of 1.9x for 2025 and a target price of 127.17 RMB [1][9]. Financial Summary - For the first three quarters of 2025, the company's total revenue was 794.7 billion RMB, reflecting a year-on-year increase of 0.4%, while the main business revenue was 683.1 billion RMB, up 0.8% year-on-year [3][10]. - The gross profit margin (GPM) stood at 31.1%, an increase of 0.3 percentage points year-on-year, and the net profit attributable to shareholders was 115.4 billion RMB, up 4.0% year-on-year [3][10]. - The net cash flow from operating activities was 161 billion RMB, down 28.1% year-on-year, but the decline has narrowed compared to the first half of the year [12]. Market Performance - In the personal market, the mobile average revenue per user (ARPU) was 48.0 RMB, down 3% year-on-year, while the comprehensive ARPU for household customers was stable at 44.4 RMB [11]. - The company continues to advance its AI and DICT business, with DICT revenue showing good growth and AI direct revenue experiencing rapid growth [11].