Tianfeng Securities·2024-03-31 16:00Investment Rating - The investment rating for the company is "Accumulate" [6] Core Views - The company achieved a revenue of 507.8 billion yuan in 2023, representing a year-on-year growth of 6.9%, with a net profit of 30.4 billion yuan, up 10.3% year-on-year [1][4] - The company is focusing on digital transformation and enhancing shareholder returns, with plans to increase the dividend payout ratio to over 75% in the coming years [4] Summary by Sections Financial Performance - In 2023, the company reported a service revenue of 465 billion yuan, maintaining a growth rate of 6.9% for 11 consecutive years [1] - The mobile communication service revenue reached 195.7 billion yuan, growing by 2.4%, with a net increase of 16.59 million mobile users, totaling 408 million users [2] - The broadband user base increased by 9.26 million, reaching 190 million users, with a broadband ARPU of 47.6 yuan, up 2.8% [2] Business Development - The company's data business revenue grew by 17.9% to 138.9 billion yuan, contributing 29.9% to service revenue, an increase of 2.8 percentage points from the previous year [2] - The Tianyi Cloud revenue surged by 67.9% to 97.2 billion yuan, indicating strong growth in international business as well [2] Capital Expenditure and Investment Strategy - In 2023, the company completed capital expenditures of 98.8 billion yuan, with significant investments in mobile networks and industrial digitalization [3] - The company plans to optimize its investment structure in 2024, with a projected capital expenditure of 96 billion yuan, a decrease of 2.9% year-on-year [3] Shareholder Returns - The company distributed a total dividend of 0.2332 yuan per share in 2023, a 19% increase from the previous year, exceeding 70% of the net profit attributable to shareholders [4] - The company aims to gradually increase cash distributions to over 75% of the net profit attributable to shareholders over the next three years [4] Financial Projections - The projected net profit for 2024-2026 is estimated at 33.2 billion yuan, 36.0 billion yuan, and 38.8 billion yuan respectively, reflecting a steady growth trajectory [4][10]