China Unicom(SH:600050) EBSCN·2024-03-20 16:00Investment Rating - The report maintains a "Buy" rating for China Unicom [3][5] Core Views - The company reported a revenue of 372.6 billion yuan in 2023, a year-on-year increase of 5.0%, with a net profit attributable to shareholders of 8.2 billion yuan, reflecting a 12.0% growth [2] - The company expects stable revenue growth in 2024, with total profit projected to achieve double-digit growth [2] - The capital expenditure (CAPEX) has shown a turning point, with a forecasted decrease of approximately 12% in 2024, which is better than expected [2][3] - The innovation business has become a significant growth driver, with revenue from smart network services reaching 75.2 billion yuan, and cloud services revenue growing by 41.6% [2] Summary by Sections Financial Performance - In 2023, the company achieved an EBITDA of 99.6 billion yuan and a return on equity (ROE) of 5.1%, the best level in recent years [2] - The revenue from the connected communication business was 244.6 billion yuan, with mobile users reaching 333 million, a net increase of 10.6 million [2] - The company’s free cash flow improved to 28.5 billion yuan, an 8% increase year-on-year, and cash dividends per share reached 0.132 yuan, a 21.1% increase [2] Revenue and Profit Forecast - Revenue projections for 2024 are set at 396.1 billion yuan, with a growth rate of 6.31% [4] - Net profit forecasts for 2024 and 2025 are 9.3 billion yuan and 10.4 billion yuan, respectively, with growth rates of 13.47% and 12.31% [4] - The report anticipates a gradual increase in EPS from 0.26 yuan in 2023 to 0.29 yuan in 2024 [4] Valuation Metrics - The price-to-earnings (P/E) ratio is projected to decrease from 18 in 2023 to 16 in 2024, and further to 14 in 2025 [4] - The price-to-book (P/B) ratio is expected to remain stable around 0.9 for the next few years [4] Market Data - The total market capitalization of the company is approximately 150.15 billion yuan, with a current share price of 4.72 yuan [6]