ARPU稳健提升，投入产数推动资本开支结构优化

Investment Rating - The report maintains a "Buy" rating for China Telecom, expecting the stock price to outperform the industry index by over 15% in the next six months [12]. Core Views - China Telecom achieved steady growth in 2023, with significant advancements in emerging industries, particularly in the cloud sector. The company is optimizing capital expenditures through continuous investment in production and data services [2][3]. - The company reported a revenue of 507.84 billion yuan in 2023, a year-on-year increase of 6.9%, and a net profit of 30.45 billion yuan, up 10.3% year-on-year [1][2]. Financial Performance Summary - Revenue Growth: - 2022A: 474.97 billion yuan - 2023A: 507.84 billion yuan (6.9% growth) - 2024E: 560.71 billion yuan (10.4% growth) [1] - Net Profit: - 2022A: 27.59 billion yuan - 2023A: 30.45 billion yuan (10.3% growth) - 2024E: 33.89 billion yuan (11.3% growth) [1] - Key Financial Ratios: - ROE: Expected to increase from 6.8% in 2023A to 7.1% in 2024E [1]. - EPS: Expected to rise from 0.33 yuan in 2023A to 0.37 yuan in 2024E [1]. Business Segment Performance - C-end Business: - Mobile communication service revenue reached 195.66 billion yuan in 2023, a 2.4% increase year-on-year. The mobile ARPU was 45.4 yuan, up 0.4% [2]. - The number of 5G package customers increased by 50.7%, with a penetration rate of 78.1% [2]. - B-end Business: - The number of wired broadband users reached 190 million, with a comprehensive ARPU of 47.6 yuan, a 2.8% increase [2]. - IoT connections surged by 120.1%, reaching 527 million [2]. - Cloud Services: - Tianyi Cloud generated 97.23 billion yuan in revenue, a 67.9% increase, maintaining a leading position in the public cloud market [2]. Capital Expenditure and Management - Capital expenditure in 2023 was 98.84 billion yuan, a 6.82% increase, making China Telecom the only major operator with positive CAPEX growth [2]. - The company aims to increase the proportion of production and data CAPEX to 38.5% in 2024 [2]. Market Value Management - The company's market value has increased 2.2 times since the end of 2020, with a dividend payout ratio exceeding 70% in 2023, aiming to raise it to over 75% within three years [2].