Investment Rating - The report maintains a "Strong Buy" investment rating for China Unicom [2][7]. Core Insights - In 2024, China Unicom achieved revenue of 389.6 billion yuan, a year-on-year increase of 4.6%, with net profit reaching 9 billion yuan, reflecting a growth of 10.5% [6][7]. - The company is focusing on enhancing its integrated communication and intelligent computing services, with significant growth in its cloud and IDC businesses [6][7]. - Capital expenditures (Capex) are being managed effectively, with a projected decrease in Capex for 2025 to 55 billion yuan, down 10% year-on-year [6][7]. Financial Performance - Revenue for 2024 was 389.6 billion yuan, with a year-on-year growth of 4.6% [6]. - The net profit for 2024 was 9 billion yuan, showing a year-on-year increase of 10.5% [6]. - The company reported a free cash flow of 29.9 billion yuan in 2024, maintaining stability [6]. Business Segments - The integrated communication segment accounted for approximately 76% of service revenue, generating 263.6 billion yuan, a year-on-year increase of 1.5% [6]. - The intelligent computing segment contributed 24% to service revenue, achieving 82.4 billion yuan, with a year-on-year growth of 24% [6]. Shareholder Returns - The dividend per share for A-shares was 0.16 yuan in 2024, reflecting a year-on-year increase of 19.7%, with a payout ratio of 55% [7]. - For H-shares, the total dividend was 0.40 yuan, with a payout ratio of 60% [7]. Future Projections - The projected net profits for 2025, 2026, and 2027 are 9.8 billion yuan, 10.5 billion yuan, and 11.2 billion yuan, respectively, with corresponding PE ratios of 19.8, 18.5, and 17.3 [7][8].

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Investment Rating - The report assigns a positive investment rating to China Unicom, indicating a favorable outlook for the company's future performance [4]. Core Insights - The report emphasizes that China Unicom is undergoing significant transformation through innovation and strategic partnerships, enhancing its position in the telecommunications industry [9][17]. - The company is focusing on digital transformation and AI integration to drive growth in new business areas, particularly in cloud computing and data services [49][52]. - Financial projections indicate steady revenue growth and profit increases, with a forecasted revenue of 4415.89 billion yuan by 2026, reflecting a compound annual growth rate [4][24]. Summary by Sections Section 1: Innovation and Reform - China Unicom has continuously innovated since its establishment in 1994, evolving from a traditional telecom operator to a technology-driven service provider [9][10]. - The introduction of strategic investors like Tencent and Alibaba has diversified the company's ownership structure and enhanced its market governance [17]. - Ongoing reforms are strengthening China Unicom's role as a leader in the digital economy, particularly in the ICT sector [19][20]. Section 2: Technology and Value Reconstruction - The telecommunications industry is experiencing robust growth, with double-digit increases in overall telecom business volume [24]. - China Unicom's revenue from its second curve business reached 752 billion yuan in 2023, accounting for 23.5% of its main business revenue [13][24]. - The company is optimizing its capital expenditures, shifting focus from traditional network investments to emerging business areas like AI and cloud services [58][59]. Section 3: Steady Improvement and New Growth Drivers - The company is expanding its network infrastructure, with a significant increase in gigabit broadband users and 5G subscribers [38][44]. - China Unicom's digital services are gaining traction, with a notable rise in cloud service revenue, which reached 438.6 billion yuan in 2024 [55]. - The report highlights the importance of AI and digital transformation in driving future growth, with a focus on integrating these technologies into existing services [53][61]. Section 4: Profit Forecast and Investment Recommendations - The financial outlook for China Unicom shows a steady increase in both revenue and net profit, with projections indicating a net profit of 116.46 billion yuan by 2026 [4][24]. - The report suggests that the company's strategic initiatives and market positioning will likely lead to enhanced shareholder returns and overall financial performance [19][20].