Minsheng Securities·2024-04-24 08:00Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company achieved a revenue of 1344.95 billion yuan in Q1 2024, representing a year-on-year growth of 3.7%, and a net profit of 91.60 billion yuan, up 5.4% year-on-year [2]. - The growth in revenue is primarily driven by the industrial digitalization business, which saw a 10.6% increase to 386.79 billion yuan in Q1 2024 [2]. - The company continues to enhance its 5G network quality and expand its unique applications, contributing to a 3.2% increase in mobile communication service revenue to 522.26 billion yuan [2]. - The report highlights a steady improvement in profit margins, with a return on equity (ROE) of 1.92% in Q1 2024, showing improvements both year-on-year and quarter-on-quarter [2]. - The company is focusing on cloud-network integration and anticipates continued leadership in the public cloud market, with a planned investment of 18 billion yuan in cloud and computing sectors in 2024 [2]. Summary by Relevant Sections Financial Performance - In Q1 2024, mobile user base reached 412 million, with a net increase of 3.88 million users, and 5G package users reached 329 million, up by 10.06 million [2]. - The company expects to achieve net profits of 335.41 billion yuan, 369.67 billion yuan, and 407.64 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (PE) ratios of 17, 15, and 14 [2][3]. Business Segments - The broadband and smart home services revenue grew by 2.2% to 318.24 billion yuan, with smart home revenue increasing by 10.4% [2]. - The average revenue per user (ARPU) for mobile services was 45.8 yuan, up 0.9% year-on-year, while the broadband ARPU was 48.6 yuan, up 2.1% [2]. Future Outlook - The company is strategically positioned to leverage opportunities in seven emerging industries and future industries, focusing on cloud computing, artificial intelligence, and quantum technologies [2].