Great Wall Securities·2024-03-11 16:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% relative to the industry index in the next six months [4][15]. Core Views - The company has demonstrated steady revenue growth, achieving an operating income of 124.25 billion yuan in 2023, a year-on-year increase of 1.05%, and a net profit attributable to shareholders of 9.33 billion yuan, up 15.41% year-on-year [2][3]. - The company is actively seizing new market opportunities in "AI computing power + trusted innovation" while maintaining a focus on its core telecommunications business [1][8]. Financial Performance Summary - Revenue and Profitability: - 2023 operating income was 124.25 billion yuan, with a growth rate of 1.1% year-on-year. The net profit attributable to shareholders was 9.33 billion yuan, reflecting a growth rate of 15.4% year-on-year [2][3]. - The overall gross margin improved to 41.53%, an increase of 4.34 percentage points year-on-year, while the net margin rose to 7.44%, up 1.10 percentage points [3]. - Segment Performance: - Domestic market revenue reached 86.49 billion yuan, growing by 1.45%, with a gross margin of 43.27%. The international market generated 37.77 billion yuan, a slight increase of 0.15%, with a gross margin of 37.54% [3]. - The company’s operator, government enterprise, and consumer businesses reported revenues of 82.76 billion yuan, 13.58 billion yuan, and 27.91 billion yuan, respectively, with varying growth rates [3]. - Future Projections: - The forecast for net profit attributable to shareholders for 2024-2026 is 10.66 billion yuan, 11.98 billion yuan, and 13.38 billion yuan, respectively, with corresponding P/E ratios of 14, 12, and 11 [8]. Business Strategy Summary - Operator Business: - The company is expanding from connectivity to computing power, focusing on major national networks and maintaining a stable market share in domestic and international markets [3][8]. - Government and Enterprise Business: - The company is enhancing its self-developed products and solutions, targeting key industries such as internet and finance, while seizing opportunities in computing power and trusted innovation [8]. - Consumer Business: - The strategy centers on multi-terminal smart interconnectivity and ecosystem expansion, with a focus on AI-driven smart ecosystems. The company aims to maintain its leading market share in home terminal products and smartphones [8].