基础业务稳健增长，新兴业务布局全面完成

Investment Rating - The report maintains an "Accumulate" rating for the company [8] Core Views - The company achieved a revenue of RMB 507.84 billion in 2023, representing a year-on-year growth of 6.92%. The service revenue was RMB 464.97 billion, also up by 6.91%. Mobile communication service revenue reached RMB 195.66 billion, growing by 2.43%, while fixed-line and smart home service revenue was RMB 123.06 billion, increasing by 3.82%. The industrial digitalization revenue surged by 17.95% to RMB 138.89 billion [2][3] - The company’s net profit attributable to shareholders for 2023 was RMB 30.45 billion, reflecting a year-on-year increase of 10.34% [2] - The company is accelerating the intelligent development of digital information infrastructure, with a significant increase in computing power and the establishment of numerous 5G base stations [4] - Capital expenditure is being optimized, with a projected 2024 capital expenditure of RMB 96 billion, a decrease of 2.87% year-on-year, and a shift in investment structure towards industrial digitalization [5] Financial Performance and Forecast - The company is expected to achieve revenues of RMB 542.93 billion, RMB 579.82 billion, and RMB 620.29 billion for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 6.91%, 6.80%, and 6.98% [6] - The net profit attributable to shareholders is forecasted to be RMB 33.71 billion, RMB 37.40 billion, and RMB 41.43 billion for the same years, with growth rates of 10.73%, 10.94%, and 10.78% [6] - The report estimates an EPS of RMB 0.37, RMB 0.41, and RMB 0.45 for 2024, 2025, and 2026, respectively, with a 3-year CAGR of 10.81% [6] - The target price is set at RMB 6.66, based on a 2024 PE ratio of 18 times [6]