Group 1 - The core viewpoint of the report is that China Unicom (600050.SH) is given a recommended rating due to its stable growth in operating performance and continuous optimization of its business structure [2] - The company has shown improvements in operational efficiency, leading to enhanced profitability [2] Group 2 - The report highlights the risk of intensified competition in traditional businesses, which may lead to a decline in user ARPU (Average Revenue Per User) [2] - There is a concern regarding potential overspending on capital expenditures related to 5G [2]

Investment Rating - The report maintains a "Recommended" rating for China Unicom (600050.SH) [3] Core Views - The company demonstrated steady growth in operating performance, with revenue reaching 200.2 billion yuan in the first half of 2025, a year-on-year increase of 1.5%, and a net profit attributable to shareholders of 6.349 billion yuan, up 5.1% year-on-year [1][2] - The business structure continues to optimize, with the connectivity communication segment generating 131.9 billion yuan in revenue, a 5.4% increase, accounting for 74.0% of total revenue [2] - The company has seen a significant increase in user scale, surpassing 1.2 billion connected users, with net additions of over 11 million mobile and broadband users, marking a record high for the same period in recent years [2] - The intelligent network segment generated 45.4 billion yuan in revenue, a 4.4% increase, contributing 25.5% to total revenue [2] - The company is enhancing its operational efficiency, with a net profit margin of 7.21%, an increase of 0.24 percentage points year-on-year [3] Summary by Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 200.2 billion yuan, with a net profit of 6.349 billion yuan, and a non-recurring net profit of 5.580 billion yuan, reflecting growth rates of 1.5%, 5.1%, and 10.3% respectively [1] - The company’s capital expenditure decreased by 15% year-on-year to 20.2 billion yuan, with a projected annual capital expenditure of around 55 billion yuan [3] User Growth and Business Segmentation - The total number of connected users exceeded 1.2 billion, with a net increase of over 11 million users in mobile and broadband services [2] - The "dual-gigabit" user ratio reached 50%, and the penetration rate of integrated services exceeded 77% [2] Profitability and Efficiency - The company’s cost operation efficiency improved, with a decrease in network settlement expenses by 0.2% and depreciation and amortization by 4.8% [3] - The report forecasts net profits for 2025, 2026, and 2027 to be 10.1 billion yuan, 11.3 billion yuan, and 12.6 billion yuan respectively, with corresponding PE ratios of 17x, 15x, and 13x [3][5]

Investment Rating - The report maintains a "Buy" rating for China Unicom (600050.SH) [6] Core Views - The company reported a revenue of RMB 200.2 billion for the first half of 2025, a year-on-year increase of 1.45%, with a net profit attributable to the parent company of RMB 6.349 billion, up 5.12% year-on-year [1] - The company is focusing on enhancing its smart network capabilities and shareholder returns, with a proposed dividend of RMB 0.1112 per share, reflecting a 16% increase compared to the previous year [1] Summary by Sections Revenue and Profitability - In the first half of 2025, the company's EBITDA was RMB 50.604 billion, down 2.48% year-on-year, while the total profit reached RMB 17.697 billion, an increase of 5.22% year-on-year [1] - The revenue from the connected communication business reached RMB 131.9 billion, with a user base exceeding 1.2 billion, marking a net increase of over 11 million users [2] Business Segments - The smart network business generated RMB 45.4 billion in revenue, accounting for 26% of total revenue, with cloud revenue contributing RMB 37.6 billion [2] - The data center segment saw a revenue increase of 9.4% year-on-year, reaching RMB 14.4 billion, driven by more internet platform companies and financial institutions utilizing the data center [2] Investment and Infrastructure - Capital expenditure for the first half of 2025 was RMB 20.2 billion, a decrease of 15% year-on-year, with operational efficiency improvements leading to an annual OPEX saving of nearly RMB 1 billion [3] - The company is advancing its computing power infrastructure, with a total data center capacity of 2,650 MW and a computing scale of 30 EFLOPS [3] Profit Forecast and Valuation - The profit forecast for 2025 has been slightly adjusted down to RMB 9.7 billion, reflecting a 7% decrease, with future estimates showing a steady growth trajectory [4] - The report anticipates a long-term positive outlook for the company, supported by stable core communication business and robust growth in innovative sectors [4]

Investment Rating - The report maintains a "Buy" rating for China Unicom (0762.HK) [4] Core Views - The company demonstrates continuous profit growth and a high dividend payout, reflecting confidence in long-term development [2] - The revenue for the first half of 2025 reached RMB 200.2 billion, a year-on-year increase of 1.5%, with total profit amounting to RMB 17.8 billion, up 5.1% year-on-year [2] - The board proposed an interim dividend of RMB 0.2841 per share, a 14.5% increase compared to the previous year, significantly higher than the growth rate of net profit attributable to shareholders [2] Summary by Sections Revenue and Profit Growth - The revenue from the Internet of Things (IoT) communication business was RMB 131.9 billion, growing by 0.4% year-on-year, with a total user base exceeding 1.2 billion [2] - The net increase in mobile and broadband users exceeded 11 million, reaching a total of 480 million users, marking the highest net increase in recent years [2] Intelligent Network Business Expansion - The revenue from the intelligent network business was RMB 45.4 billion, a year-on-year increase of 4.3%, accounting for 26% of total revenue [3] - Cloud revenue reached RMB 37.6 billion, growing by 18.6% year-on-year, while data center revenue increased by 9.4% to RMB 14.4 billion [3] - The company has signed contracts worth 60% more in AIDC compared to the previous year, and has launched over 5,000 5G application projects [3] Capital Expenditure and Cash Flow - Capital expenditure decreased by 15% year-on-year, indicating effective cost control [4] - The net cash flow from operating activities was RMB 29 billion, with free cash flow after capital expenditure reaching RMB 8.78 billion, a 63.1% increase year-on-year [4] - The comprehensive gross margin improved by 0.5 percentage points, enhancing profitability [4] Profit Forecast and Valuation - The report forecasts net profit attributable to shareholders for 2025 to be RMB 21.748 billion, with a corresponding P/E ratio of 13X [4] - The company is expected to maintain a stable dividend yield, averaging over 6% in the past five years, indicating strong stability [4]

Investment Rating - The investment rating for China Unicom is "Accumulate" with a target price of 7.59 CNY [6][12]. Core Insights - The company continues to optimize its cost structure and enhance operational efficiency, with a focus on R&D investments in AI and computing power, laying a solid foundation for high-quality development [2]. - In the first half of 2025, the company achieved steady revenue growth, with total operating income reaching 200.2 billion CNY (YoY +1.5%) and net profit attributable to shareholders at 6.349 billion CNY (YoY +5.1%) [12]. - The intelligent computing business has become a core growth engine, contributing 45.4 billion CNY in revenue, accounting for 26% of total operating income [12]. - The company has effectively controlled capital expenditures, which decreased by 15% year-on-year, while increasing R&D expenses by 15.6% to 3.46 billion CNY [12]. Financial Summary - Total operating revenue is projected to grow from 372.6 billion CNY in 2023 to 439.4 billion CNY in 2027, with a CAGR of approximately 4.9% [5]. - Net profit attributable to shareholders is expected to increase from 8.17 billion CNY in 2023 to 11.24 billion CNY in 2027, reflecting a CAGR of about 9.2% [5]. - The earnings per share (EPS) is forecasted to rise from 0.26 CNY in 2023 to 0.36 CNY in 2027 [5]. - The return on equity (ROE) is anticipated to improve from 5.1% in 2023 to 6.2% in 2027 [5]. Business Performance - The intelligent computing business has shown strong momentum, with cloud revenue reaching 37.6 billion CNY and data center revenue growing by 9.4% to 14.4 billion CNY [12]. - The connectivity business remains stable, with revenue of 131.9 billion CNY and a user base exceeding 480 million, marking a net increase of over 11 million users in the first half of 2025 [12]. - The company has maintained a stable average revenue per user (ARPU) while achieving high-quality user growth [12].

证券研究报告 | 2025年08月13日 中国联通（600050.SH） 优于大市 2025 年上半年净利润同比增长 5%，算力业务动能强劲 2025 年上半年公司经营业绩稳健增长。2025 年上半年，公司实现营收 2002 亿元（同比+1.45%），联网通信收入达 1319 亿元（同比+0.4%）。归母净利 润 63.49 亿元（同比+5.1%）。净资产收益率（ROE 摊薄）同比稳定提升 0.07pct 至 3.75%，EBITDA 率同比下降 1.01pct 至 25.28%。 公司业务结构持续优化。2025 年上半年，公司联网通信实现营收 1319 亿 元，同比增长 0.4%。其中移动和宽带用户净增数达到 1119 万户，净增 创近年新高；"双千兆"用户占比达到 50%，融合业务 ARPU 超过 100 元。 受益于算力业务动能强劲，公司 25H1 算网数智业务收入达 454 亿元， 同比增长 4.3%，当前占收比达到 26%，较上年同期进一步提升，成为公 司第二增长曲线。其中联通云收入同比增长 4.6%至 376 亿元，数据中心 业务同比增长 9.4%至 144 亿元，AIDC 上半年签约金额同比增长 ...

Core Insights - China Unicom reported a revenue of 200.2 billion yuan and a net profit of 6.349 billion yuan for the first half of 2025, marking a year-on-year growth of 5.12% [1] - The company plans to distribute a cash dividend of 1.112 yuan per 10 shares, reflecting a 16% increase compared to the previous year [1] Group 1: Financial Performance - The operating cash flow for the first half of the year decreased by 2.8% year-on-year due to slower payment collection in the new intelligent network business compared to traditional communication services [1] - Capital expenditure for the first half of 2025 was 20.2 billion yuan, a decline of 15% year-on-year, with an expected annual fixed asset investment of around 55 billion yuan [1][2] Group 2: Strategic Focus - The company is shifting its investment focus from traditional mobile and broadband services to IDC and cloud services, with a projected investment decline of over 10% in 2024 and 2025 [2] - China Unicom is enhancing its network capabilities by building intelligent computing centers and increasing data center capacity to 2,650 MW, with a total intelligent computing scale reaching 30 EFLOPS [2] Group 3: Business Development - Revenue from the connected communication segment reached 131.9 billion yuan, while intelligent network revenue was 45.4 billion yuan, accounting for 26% of total revenue [3] - The company has seen a 9.4% year-on-year growth in data center revenue, with significant increases in AIDC contract amounts, indicating a strengthening market position [3] - International business revenue grew by 11% year-on-year, with the establishment of five new overseas intelligent computing centers enhancing global service capabilities [3]

Core Viewpoint - China Unicom reported a revenue of 200.2 billion yuan and a net profit of 6.349 billion yuan for the first half of 2025, indicating a year-on-year growth of 1.5% and 5.12% respectively, as the company accelerates AI integration into network operations [1][2] Financial Performance - China Unicom's revenue reached 200.2 billion yuan, a 1.5% increase year-on-year, with a net profit of 6.349 billion yuan, reflecting a 5.12% growth [2] - The company plans to distribute a cash dividend of 1.112 yuan per 10 shares, a 16% increase from the previous year, totaling approximately 3.477 billion yuan [2] - Operating cash flow for China Unicom decreased by 2.8% year-on-year, attributed to the slower return on investment in the new intelligent network business compared to traditional communication services [3] Capital Expenditure - China Unicom's capital expenditure for the first half of 2025 was 20.2 billion yuan, a 15% decrease year-on-year, with an annual investment forecast of around 55 billion yuan [4] - The company emphasizes a cautious approach to capital expenditure, focusing on optimizing investment structure and enhancing investment efficiency [4] - Investment priorities have shifted from traditional connectivity to intelligent data centers and cloud services, with a continuous decline in overall investment scale since 2022 [4] Business Development - The intelligent network business of China Unicom showed strong growth, with revenue from this segment reaching 45.4 billion yuan, accounting for 26% of total revenue [7] - The company has made significant advancements in AI applications, with cloud revenue hitting 37.6 billion yuan and data center revenue increasing by 9.4% year-on-year [8] - China Unicom's user base surpassed 1.2 billion, with notable growth in mobile and broadband users, and a net increase of over 60 million IoT connections [8] International Expansion - China Unicom has established a more comprehensive international intelligent computing layout, including five new overseas intelligent computing centers [8] - The company is actively providing digital services to over 280 cloud service providers and connecting more than 400 data centers globally [8]

Core Viewpoint - The development of the low-altitude economy relies on the support of low-altitude network communication and perception capabilities, with China Unicom actively building a digital foundation through five-network integration to foster innovative capabilities in low-altitude scenarios [1][2]. Group 1: Low-altitude Economy Infrastructure - China Unicom is constructing a "1+1+3+N" low-altitude capability system, which includes an integrated low-altitude smart network, a fusion of spatiotemporal big data, and three core platforms for safety regulation, airspace management, and smart low-altitude applications [1]. - The company emphasizes that traditional operators only provide communication pipelines, while low-altitude operations require centimeter-level positioning, real-time weather warnings, and obstacle avoidance decision-making [1]. Group 2: Data and Service Capabilities - China Unicom has made significant investments in edge computing and terminal computing, achieving data centralization across 31 provinces, positioning itself as a leader in data governance in China [2]. - The company has developed a public and industry data fusion computing infrastructure, accumulating high-quality datasets across over 10 industries, totaling 400 terabytes [2]. Group 3: Cost Efficiency and Operational Advantages - The operational cost for a logistics company building its own low-altitude network is 28 yuan per kilometer, while China Unicom's project in Zhejiang achieves a cost of only 9.7 yuan [2]. - In a project for the Yunnan power grid inspection, China Unicom reduced data processing latency from 3 seconds to 200 milliseconds by establishing edge computing nodes [2]. Group 4: Application Scenarios - In Longyan, Fujian, the efficiency of blood transport via drones has improved by 150% [2]. - In Zhengzhou, the company has implemented automatic inspection with "instant recognition" for heating pipeline networks [2]. - Cross-border island logistics testing has also been initiated [2].

Core Viewpoint - China Unicom has achieved significant breakthroughs in its operations, reporting a record high revenue and net profit for the first quarter of 2025, marking a strong start to the year [2][5][6]. Financial Performance - In Q1 2025, China Unicom reported revenue of 103.35 billion yuan, a year-on-year increase of 3.88%, and a net profit attributable to shareholders of over 2.6 billion yuan, up 6.5% [5][6]. - The company's operating cash flow for the first quarter was 7.846 billion yuan, maintaining a positive cash flow status [9]. - The asset-liability ratio as of March 2025 was 43.89%, a decrease of 1.3 percentage points from the beginning of the year [4][12]. User Growth and Business Segments - The company has seen steady growth in user numbers, with mobile users reaching 349 million, an increase of 4.78 million, and IoT connections totaling 663 million, up by 38.4 million [8]. - The cloud revenue reached 19.72 billion yuan, with significant advancements in the "5G + Industrial Internet" projects, totaling 30,000 implementations and over 7,500 5G factories [8]. Research and Development - R&D investment for Q1 2025 was 1.471 billion yuan, reflecting a year-on-year increase of 6.67% [3][11]. - The number of authorized patents in Q1 2025 was 84 [12]. Strategic Initiatives - China Unicom is focusing on three key areas: network innovation, technology innovation, and service innovation, which have shown significant results in enhancing the company's high-quality development [10]. - The company is actively embracing artificial intelligence, launching new AI products and services, and enhancing its product supply capabilities [10]. Historical Performance - Since the completion of its mixed-ownership reform in 2017, China Unicom has seen continuous growth in its operating performance, with revenue increasing from 274.83 billion yuan in 2017 to 389.59 billion yuan in 2024, a cumulative growth of 1.147 trillion yuan [11]. - The net profit attributable to shareholders has also shown uninterrupted growth, reaching 9.03 billion yuan in 2024, a growth of approximately 2019.72% since 2017 [11].