Minsheng Securities·2024-03-08 16:00Investment Rating - The report maintains a "Recommended" rating for the company with a current price of 30.18 yuan [7]. Core Insights - The company achieved a revenue of 124.25 billion yuan in 2023, representing a year-on-year growth of 1.05%, and a net profit attributable to shareholders of 9.33 billion yuan, up 15.41% year-on-year [3]. - The company plans to distribute a cash dividend amounting to 35% of the net profit attributable to shareholders for the year [3]. - The company has increased its R&D investment to 25.29 billion yuan in 2023, a growth of 17.07% year-on-year, with a focus on 5G, chips, servers, and storage technologies [5]. Revenue and Profitability - The company's main business remains stable, with significant improvements in profitability. The gross profit margin for 2023 was 41.53%, an increase of 4.34 percentage points year-on-year [4]. - The revenue from the operator network was 82.76 billion yuan, growing by 3.40% year-on-year, while the enterprise business revenue decreased by 7.14% to 13.58 billion yuan [4]. - The consumer business revenue was 27.91 billion yuan, down 1.33% year-on-year, primarily due to declines in international terminal and mobile product sales [4]. Future Projections - The company is expected to achieve net profits of 11.47 billion yuan, 13.21 billion yuan, and 15.84 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding PE ratios of 13, 11, and 9 [7][8]. - Revenue projections for 2024, 2025, and 2026 are 134.67 billion yuan, 145.87 billion yuan, and 156.25 billion yuan, with growth rates of 8.4%, 8.3%, and 7.1% respectively [8][9].