China Unicom(SH:600050) Tianfeng Securities·2024-04-21 09:30Investment Rating - The report maintains a "Buy" rating for China Unicom, with a target price not specified [6]. Core Viewpoints - China Unicom's Q1 2024 results show a revenue of CNY 99.496 billion, a year-on-year increase of 2.3%, with a total profit of CNY 7.169 billion, reflecting a 10.0% growth [1][4]. - The company is focusing on the coordinated development of its two main business segments: network communication and intelligent computing [2]. - The network communication segment achieved revenue of CNY 62.304 billion, with a mobile user base of 337 million, including 269 million 5G users, resulting in a penetration rate of 80% [2]. - The intelligent computing segment generated revenue of CNY 23.215 billion, accounting for 26.1% of the main business revenue, with significant growth in cloud services and data center revenues [2][3]. Financial Summary - The projected net profits for the years 2024 to 2026 are CNY 9.093 billion, CNY 10.049 billion, and CNY 11.075 billion, respectively, indicating a positive growth trajectory [4]. - The company's revenue is expected to grow from CNY 403.66 billion in 2024 to CNY 465.29 billion in 2026, with growth rates of 8.34%, 7.83%, and 6.90% [5]. - The EBITDA is projected to be CNY 97.015 billion in 2024, with a slight increase to CNY 109.184 billion by 2026 [5]. Business Development - China Unicom is accelerating the construction of digital information infrastructure, focusing on high-quality 5G development with 1.27 million mid-frequency base stations [3]. - The company is actively investing in emerging industries such as artificial intelligence and digital applications, with a strong emphasis on technological innovation [3]. - The number of authorized patents reached 362 in Q1 2024, reflecting a steady increase in innovation capabilities [3].