传统业务稳健扩张，高研发推进云改数转

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market index [3]. Core Insights - The company reported a Q1 2024 revenue of 134.495 billion yuan, a year-on-year increase of 3.65%, and a net profit attributable to shareholders of 8.597 billion yuan, up 7.68% year-on-year [1][3]. - The traditional business is expanding steadily, while the digital transformation strategy is contributing to high growth rates. Service revenue increased by 5.0% year-on-year to 124.347 billion yuan, driven by both traditional and digital businesses [1]. - The company is focusing on optimizing cost structures to enhance profitability, with a sales expense ratio down by 0.40 percentage points to 10.53% and a management expense ratio down by 0.51 percentage points to 7.37% [1]. - The company is committed to increasing shareholder returns, with a dividend payout ratio exceeding 70% and a three-year compound annual growth rate of 31% for dividends per share [1]. - Profit forecasts have been adjusted, with expected net profits for 2024-2026 at 33.406 billion, 36.218 billion, and 39.252 billion yuan, respectively, corresponding to PE ratios of 16.7, 15.4, and 14.2 times [1][4]. Summary by Sections Financial Performance - Q1 2024 revenue: 134.495 billion yuan, +3.65% YoY - Q1 2024 net profit: 8.597 billion yuan, +7.68% YoY - Q1 2024 net profit excluding non-recurring items: 9.160 billion yuan, +5.40% YoY [1]. Business Segments - Mobile business: Net increase of 3.88 million users to 412 million, with 5G users increasing by 10.06 million to 329 million, achieving a penetration rate of approximately 79.9% [1]. - Fixed-line and home business: Net increase of 2.06 million broadband users to 192 million, with revenue growth of 10.4% YoY [1]. - Industrial digitalization: Revenue increased by 10.6% YoY to 38.679 billion yuan [1]. Cost Management and R&D - Continued focus on cost reduction and efficiency improvements, with significant increases in R&D investment, up 13.8% YoY to 1.571 billion yuan [1]. - The company is enhancing its digital capabilities through investments in AI and cloud technologies [1]. Shareholder Returns - The company has increased its dividend payout ratio to over 70%, with plans to raise it to above 75% in the future [1]. - The company aims for sustainable growth in revenue and net profit, indicating strong long-term investment potential [1].