Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 110.84 CNY [6]. Core Views - The company achieved steady revenue growth and improved profitability through effective cost control, with Q1 2025 revenue reaching 263.76 billion CNY, a year-on-year increase of 0.02%, and net profit attributable to shareholders at 30.63 billion CNY, up 3.45% year-on-year [1][3]. - The company is focusing on enhancing its integrated computing network infrastructure, having established a comprehensive computing network that includes various types of computing capabilities [4]. - The company is expected to see continued profit growth, with projected net profits of 145.8 billion CNY, 153.9 billion CNY, and 162.7 billion CNY for 2025, 2026, and 2027 respectively, reflecting growth rates of 5%, 6%, and 6% [4][5]. Summary by Sections Financial Performance - In Q1 2025, the company reported a gross margin of 26.93%, an increase of 0.75 percentage points year-on-year, and a net profit margin of 11.61%, up 0.38 percentage points [3]. - The EBITDA for Q1 2025 was 80.7 billion CNY, representing a year-on-year growth of 3.4%, with an EBITDA margin of 30.5%, an increase of 1.0 percentage points [3]. Revenue Breakdown - The company's main business revenue reached 263.8 billion CNY in Q1 2025, a year-on-year increase of 1.4%, while other business revenue declined by 6.8% to 41.4 billion CNY [2]. - The personal market saw a total mobile customer base of 1.003 billion, with a quarterly net decrease of 936,000 customers, while the average revenue per user (ARPU) for mobile services was 46.9 CNY, down 1.6 CNY from the previous year [2]. Cost Management - The company has effectively controlled costs, with sales, management, and R&D expense ratios decreasing by 0.21 percentage points, 0.09 percentage points, and increasing by 0.07 percentage points respectively [3]. - The operating cash flow for Q1 2025 was 31.3 billion CNY, a year-on-year decrease of 44.97%, primarily due to the company's commitment to fulfilling economic and social responsibilities [3].