China Unicom(SH:600050) CMS·2025-10-27 13:50Investment Rating - The report maintains a "Strong Buy" rating for China Unicom [2] Core Views - In Q3 2025, China Unicom achieved a revenue of 293 billion yuan, a year-on-year increase of 1.0%, and a net profit of 88 billion yuan, up 5.2% year-on-year, indicating continuous user growth and optimization of profit quality [1][3] - The company focuses on two main businesses: network communication and intelligent computing, showing good operational momentum [3] - The report forecasts net profits for 2025-2027 to be 95 billion yuan, 101 billion yuan, and 107 billion yuan respectively, with corresponding PE ratios of 18.0, 17.0, and 16.0 [3][5] Summary by Sections Financial Performance - In Q3 2025, China Unicom's mobile users reached 356 million, with a net increase of 12.48 million users, and broadband users reached 129 million, with a net increase of 6.79 million users [3] - The cloud revenue for Q3 2025 was 52.9 billion yuan, growing 20.6% year-on-year, while data center revenue was 21.4 billion yuan, up 8.9% year-on-year [3] - The company reported a net profit of 55 billion yuan in Q3 2025, a 5.3% increase year-on-year, and a net profit attributable to shareholders of 24 billion yuan, up 5.4% year-on-year [3] Cost Management - Operating costs for Q3 2025 were 214 billion yuan, a decrease of 0.3% year-on-year, indicating effective cost control [3] - Depreciation and amortization expenses were 60.5 billion yuan, down 4.3% year-on-year, representing 23.1% of service revenue [3] Cash Flow and Financial Health - Operating cash flow for Q3 2025 was 29.06 billion yuan, an increase of 3.4% year-on-year, marking a positive trend in cash flow [3] - As of Q3 2025, accounts receivable stood at 70.93 billion yuan, up 13.31% year-on-year, with improved collection management expected to enhance cash flow further [3] Valuation Metrics - The report provides projected financial metrics, including total revenue for 2025 estimated at 398.7 billion yuan, with a year-on-year growth of 2% [5] - The report indicates a projected PB ratio of 1.0 for 2025, reflecting stable valuation expectations [5][20]