China Unicom(SH:600050) GUOTAI HAITONG SECURITIES·2025-10-24 11:40Investment Rating - The report maintains a "Buy" rating for China Unicom, with a target price of 7.83 CNY [5][12]. Core Insights - China Unicom's performance in the first three quarters of 2025 showed steady growth, with total revenue reaching 293 billion CNY, a year-on-year increase of 1.0%. The net profit attributable to the parent company was 7.623 billion CNY, reflecting a year-on-year growth of 10.9% [2][12]. - The company's digital intelligence business is a strong growth driver, with significant revenue contributions from its cloud services and data center operations. The cloud segment generated 52.9 billion CNY, while the data center business achieved 21.4 billion CNY, marking an 8.9% increase year-on-year [12]. - The report highlights the solid foundation of the connectivity business, with mobile users reaching 356 million, adding 12.48 million users, and fixed broadband users reaching 129 million, adding 6.79 million users, both achieving record net additions for the same period in recent years [12]. Financial Summary - Total revenue projections for China Unicom are as follows: 372.597 billion CNY for 2023, 389.589 billion CNY for 2024, and 402.638 billion CNY for 2025, with growth rates of 5.0%, 4.6%, and 3.3% respectively [4][13]. - Net profit attributable to the parent company is projected to be 8.173 billion CNY for 2023, increasing to 9.030 billion CNY in 2024 and 9.694 billion CNY in 2025, with growth rates of 12.0%, 10.5%, and 7.4% respectively [4][13]. - The report indicates a decrease in capital expenditure by 15% year-on-year, with a focus on high-value areas such as computing power networks [12]. Market Position - China Unicom's current stock price is 5.55 CNY, with a market capitalization of 173.518 billion CNY. The stock has a price-to-book ratio of 1.01 and a dividend yield of 2.85% [6][14]. - The company has a solid financial position, with total assets of 662.845 billion CNY and total liabilities of 304.910 billion CNY, resulting in a debt-to-equity ratio of approximately 46% [13].