Investment Rating - The report maintains a "Buy" rating for the company [6][5] Core Views - The company achieved a revenue of RMB 269.42 billion in 1H25, a year-on-year increase of 1.3%, and a net profit of RMB 23 billion, up 5.5% year-on-year, slightly exceeding previous expectations [1] - The company plans to distribute a mid-year dividend of RMB 0.18 per share, with a payout ratio of 72%, reflecting an 8.4% increase in dividends year-on-year [1] - The report highlights the company's strong growth potential in digitalization and AI-related services, particularly through its Tianyi Cloud business, which is transitioning towards intelligent cloud services [1][5] Summary by Sections Financial Performance - In 1H25, mobile communication service revenue grew by 1.3% to RMB 106.6 billion, with mobile users reaching 433 million, a net increase of 25 million from the end of 2024 [2] - Fixed-line and smart home revenue increased by 0.2% to RMB 64.1 billion, with fixed broadband users growing to 199 million, a net increase of 9 million [2] Digital Transformation - The company's digitalization revenue rose by 1.5% to RMB 74.85 billion in 1H25, with Tianyi Cloud revenue increasing by 4% to RMB 57.3 billion [3] - AI-related revenue saw a remarkable growth of 89.4%, with the company's self-owned and accessed intelligent computing capacity reaching 77 EFLOPS [3] Capital Expenditure and Profitability - Capital expenditure in 1H25 was RMB 34.2 billion, with a projected decrease of 10.6% to RMB 83.6 billion for the full year [4] - The company's return on equity (ROE) improved by 0.2 percentage points to 5.0%, and net profit margin increased by 0.3 percentage points to 9.2% [4] Future Outlook - The report forecasts net profits for 2025-2027 to be RMB 34.8 billion, RMB 36.7 billion, and RMB 38.4 billion respectively, with a slight downward adjustment of 2%-4% from previous estimates [5] - The company is assigned a target price of RMB 9.11 based on a 1.8x PB valuation for 2025, compared to a global average of 1.51x [5][11]

Core Insights - The article discusses the significance of computing power as a new form of productivity, likening it to "digital electricity" that integrates computing, networking, and storage [2][3] - The "Computing Power Interconnection Action Plan" aims to create a national computing network, enhancing resource integration and standardization, which is a competitive advantage for China compared to the U.S. [5][6] Group 1: Market Overview - The software revenue is projected to increase by 80% from 2020 to 2024, with over 10,000 smart factories covering 80% of major manufacturing categories, indicating that computing power is becoming a new engine for economic growth [5] - The Chinese computing power market is expected to reach 307.5 billion yuan by 2027, with every 1 yuan invested generating 3-4 yuan in economic growth [6] Group 2: Infrastructure Development - China Mobile is a key player with over 1 million computing servers and a computing scale exceeding 43 EFLOPS, accounting for one-sixth of the national resources [9] - The Sichuan computing center is a critical node in the "East Data West Computing" strategy, providing significant resources for large model training and intelligent services [11][12] Group 3: Competitive Landscape - China Unicom operates four smart computing centers with a total computing scale of 30 EFLOPS and has implemented a fully domestic platform supporting various local chips and models [14][15] - China Telecom has developed a cloud-intelligent layout with a computing scale of 21 EFLOPS and has integrated multiple partners into its platform [17][19] Group 4: Strategic Implications - The national computing network led by the three major telecom operators addresses the issue of resource dispersion and reduces computing costs for businesses, enhancing the overall efficiency of resource utilization [21] - The total computing power in China is currently at 280 EFLOPS, narrowing the gap with the U.S., and the competition in computing power is seen as a contest of ecosystems and layouts [21]

Core Viewpoint - The China Securities Index Hong Kong Fundamental 50 Index (HK F50) experienced a slight decline of 0.25%, closing at 2235.79 points, with a trading volume of 85.332 billion yuan. However, it has shown significant growth over the past month (4.68%), three months (12.20%), and year-to-date (22.42%) [1]. Group 1: Index Overview - The HK F50 Index selects the 50 listed companies with the strongest fundamental value from the Hong Kong market, using a fundamental value-weighted calculation to mitigate the impact of overvalued securities typically seen in traditional market-capitalization indices [1]. - The index was established on December 31, 2004, with a base point of 1000.0 [1]. Group 2: Top Holdings - The top ten weighted companies in the HK F50 Index are: - China Construction Bank (11.09%) - China Mobile (7.73%) - Tencent Holdings (5.41%) - Industrial and Commercial Bank of China (5.2%) - Alibaba Group (4.59%) - HSBC Holdings (4.2%) - CNOOC (4.05%) - Ping An Insurance (3.56%) - Bank of China (3.49%) - Agricultural Bank of China (2.65%) [1]. Group 3: Sector Allocation - The sector allocation of the HK F50 Index is as follows: - Financials: 39.52% - Communication Services: 19.20% - Energy: 11.69% - Real Estate: 9.65% - Consumer Discretionary: 9.43% - Industrials: 3.36% - Information Technology: 3.13% - Health Care: 1.35% - Materials: 1.18% - Consumer Staples: 0.80% - Utilities: 0.70% [2]. Group 4: Index Adjustment - The index samples are adjusted annually, with changes implemented on the next trading day following the second Friday of June. Weight factors are generally fixed until the next scheduled adjustment, with special circumstances allowing for temporary adjustments [2].

Company Announcements - Tianpu Co., Ltd. is planning a change in control, leading to a suspension of its stock starting August 15, 2025, for no more than two trading days [1] - Cambrian is addressing misinformation regarding large substrate orders and revenue forecasts, which have caused abnormal stock price fluctuations [2] - China Shipbuilding Industry Corporation is merging with China Heavy Industry, resulting in China Heavy Industry's application for voluntary delisting from A-shares [2] - Dayuan Pump Industry reported that its liquid cooling temperature control business is part of its original operations, with Q1 sales revenue of approximately 1.6 million yuan, accounting for 0.43% of total revenue [2] Investments and Acquisitions - Juyi Rigging plans to invest 100 million yuan to establish a wholly-owned subsidiary in Tianjin for marine technology [5] - Kanda New Materials intends to acquire 51% of Zhongke Huami for 275 million yuan, expanding into the special integrated circuit design and testing sector [5] Shareholding Changes - Zhongzhi Holdings' largest shareholder, Changjiang Environmental Group, plans to transfer 24.73% of its shares through public solicitation [6] - Tibet Tourism's major shareholder, Lvtou Group, plans to reduce its stake by up to 0.97%, equating to 2.2 million shares [4] Financial Performance - China Telecom reported a net profit of 23.02 billion yuan for the first half of 2025, with a proposed interim dividend of 16.58 billion yuan [7] - Taicheng Light's net profit increased by 118% year-on-year in the first half of 2025, with revenue growth of 62.49% [8] Contracts and Projects - Jiadian Co., Ltd. has won a nuclear power project contract worth 609 million yuan [9] Stock Price Movements - Electronic City is undergoing a transition to technology city renewal services, with new business not yet contributing significantly to revenue or profit [3]

Macro Dynamics - The People's Bank of China announced a 500 billion yuan reverse repurchase operation with a term of 6 months to maintain ample liquidity in the banking system [2] Industry Insights - A total of 152 energy storage companies have responded to an initiative by the China Chemical and Physical Power Industry Association to promote fair competition and healthy development in the energy storage sector, indicating strong support for industry self-regulation [3] Company Dynamics - Longcheng Securities reported no significant changes in its operational environment despite a stock price fluctuation exceeding 20% [6] - Southwest Securities announced a 24.36% year-on-year increase in net profit for the first half of the year, with revenue reaching 1.504 billion yuan [7] - China Telecom's half-year report showed a 1.3% increase in revenue to 269.422 billion yuan and a 5.5% rise in net profit [11] - China Yangtze Power has established a five-year dividend plan, committing to distribute at least 70% of its annual net profit as cash dividends [12] - NetEase reported a second-quarter revenue of 27.9 billion yuan, with significant investments in R&D [13] - JD Group's second-quarter revenue reached 356.7 billion yuan, reflecting a year-on-year increase of 22.4% [14] - China Shipbuilding Industry has submitted an application for voluntary delisting from the A-share market due to a merger with China Heavy Industry [15]

Group 1: Company Announcements - China Shipbuilding Industry Company plans to terminate the listing of China Heavy Industry due to a merger, which has been approved by the China Securities Regulatory Commission [3] - *ST Suwu's stock closed at 0.99 yuan, below the 1 yuan threshold, which may lead to delisting if it remains below this price for 20 consecutive trading days [4] - Foton Motor has identified tax payment deficiencies amounting to 28.83 million yuan for the years 2022-2024, which have been settled without administrative penalties [5] - Wolong Electric Drive has submitted an application for H-share issuance and listing on the Hong Kong Stock Exchange [6] - Dayuan Pump Industry reported that its liquid cooling business generated approximately 1.6 million yuan in revenue in Q1 2025, representing only 0.43% of total revenue [7] - Gansu Energy Chemical's subsidiary Jinhe Coal Mine has resumed production after passing safety inspections following a CO2 incident [8] Group 2: Financial Performance - China Telecom reported a net profit of 23.017 billion yuan for the first half of 2025, a 5.5% increase year-on-year, with total revenue of 269.422 billion yuan, up 1.3% [10] - JD Group's second-quarter revenue reached 356.7 billion yuan, reflecting a year-on-year growth of 22.4%, while net profit decreased to 6.2 billion yuan from 12.6 billion yuan in the previous year [11] - Chuanjinno achieved a net profit of 177 million yuan in the first half of 2025, marking a significant increase of 166.51% year-on-year, with total revenue of 1.744 billion yuan [12] - Darentang reported a net profit of 1.928 billion yuan for the first half of 2025, a remarkable increase of 193.08%, despite a 33.15% decline in revenue [13] - Baodi Mining's net profit fell by 40.11% to 61.592 million yuan in the first half of 2025, although revenue increased by 23.65% to 721 million yuan [14] - Bailong Oriental's net profit rose by 67.53% to 390 million yuan, with a revenue decline of 9.99% to 3.591 billion yuan [15] - Dunhuang Seed Industry reported a net profit of 54.454 million yuan, up 73.43% year-on-year, with revenue of 718 million yuan, a 21.63% increase [16] - Huarui Precision's net profit increased by 18.80% to 85.4597 million yuan, with revenue growing by 26.48% to 519 million yuan [17] - Chongqing Beer reported a net profit of 865 million yuan, a decrease of 4.03%, with revenue slightly down by 0.24% to 8.839 billion yuan [18] Group 3: Shareholding Changes - Tibet Tourism's major shareholder, Travel Investment Group, plans to reduce its stake by up to 0.97%, equivalent to 2.2 million shares, within three months [20] Group 4: Strategic Partnerships - Shanying International has signed strategic investment cooperation agreements with Yunyin Technology and Proton Technology to establish a technology company focused on providing integrated solutions for the paper and packaging industry [22][23]

Investment Rating - The report maintains a "Recommended" rating for China Unicom [3] Core Viewpoints - The integration of AI+ is expected to bring new growth momentum, driving long-term high-quality development and providing high dividend returns to shareholders [2] Financial Performance Summary - For the first half of 2025, China Unicom achieved total revenue of 200.202 billion yuan, a year-on-year increase of 1.45%, and a net profit attributable to shareholders of 6.349 billion yuan, up 5.1%. The net profit after deducting non-recurring items reached 5.580 billion yuan, reflecting a growth of 10.3% [5] - In Q2 2025 alone, the company reported total revenue of 96.849 billion yuan, with a net profit of 3.743 billion yuan, representing a quarter-on-quarter increase of 43.63% [5] Business Segment Performance - The traditional connectivity business generated revenue of 131.9 billion yuan, accounting for 65.9% of total revenue, with over 11 million new mobile and broadband users and 330 cities utilizing 5G-A commercial services [5] - The smart network business segment reported revenue of 45.4 billion yuan, contributing 26% to total revenue, indicating a further increase compared to the previous year [5] Capital Expenditure and Future Outlook - The company plans to invest 55 billion yuan in capital expenditures for 2025, focusing on enhancing intelligent computing power and network capacity [5] - The projected net profit for 2025-2027 is estimated at 9.734 billion yuan, 10.599 billion yuan, and 11.551 billion yuan respectively, with corresponding EPS of 0.31 yuan, 0.34 yuan, and 0.37 yuan [6]

Macro and Strategy - The government bond weekly report indicates that the "cleaning debt" special bonds disclosed exceed 100 billion [5][9] - As of the 32nd week (August 4-10), the cumulative net financing of government bonds reached 9.6 trillion, exceeding the same period last year by 4.9 trillion [8][9] Industry and Company - The energy storage industry has proposed an "anti-involution" initiative, focusing on improving profitability for energy storage companies [10] - China Unicom (600050.SH) reported a 5% year-on-year increase in net profit for the first half of 2025, driven by strong momentum in computing power business [14][15] - Industrial Fulian (601138.SH) achieved a 51% year-on-year profit growth in Q2, with continuous increases in the shipment of the GB200 series [16][17] - Jiemai Technology (002859.SZ) is seeing batch imports of release films, with significant growth expected in composite current collectors [20][21] - Huahong Semiconductor (01347.HK) reported a gross margin exceeding guidance in Q2 2025, maintaining full capacity utilization [24] - Guizhou Moutai (600519.SH) saw a 9.2% year-on-year revenue increase in Q2 2025, adjusting its product structure according to market conditions [28][30] - Ganyuan Food (002991.SZ) faced a 55.2% year-on-year decline in net profit due to pressure on distribution channels and increased expense ratios [31][32] Investment Recommendations - The report suggests focusing on energy storage companies that may benefit from the "anti-involution" policy, highlighting firms like Sungrow Power, Sungrow, and CATL [10] - For the livestock industry, the report recommends companies like Yuran Livestock and Modern Animal Husbandry, anticipating a reversal in the cattle cycle in 2025 [13] - The report maintains a "better than market" rating for China Unicom, projecting net profits of 95/101/109 billion for 2025-2027 [16] - Industrial Fulian's investment outlook is positive, with an upward revision of profit expectations due to strong demand for AI infrastructure [19] - Jiemai Technology is expected to maintain a "better than market" rating, with projected net profits of 2.58/3.39/4.29 billion for 2025-2027 [23]

Core Viewpoint - The article highlights the increasing trend of interim dividend announcements among A-share listed companies, with a total proposed payout of 829.02 billion yuan as of August 13, 2025, reflecting a strong commitment to shareholder returns and stable financial management [1] Group 1: Interim Dividend Trends - As of August 13, 2025, 65 A-share listed companies have disclosed their interim dividend plans, with a total proposed payout of 829.02 billion yuan [1] - Several companies are initiating interim dividends for the first time, with industry leaders leading the way in distributing substantial dividends [1][2] - The trend of increasing cash dividends aligns with regulatory encouragement and investor expectations, indicating a positive market reception [1] Group 2: Company-Specific Dividend Plans - Hikvision plans to distribute a cash dividend of 4 yuan per 10 shares, totaling approximately 3.6 billion yuan, supported by a revenue of 418.18 billion yuan and a net profit of 56.57 billion yuan for the first half of the year [2] - Changshu Bank has achieved double-digit growth in revenue and net profit for 16 consecutive quarters, proposing a cash dividend of 0.15 yuan per share, totaling 4.97 billion yuan, which is 25.27% of its net profit [3] - Weisheng Information plans to distribute a cash dividend of 2.5 yuan per 10 shares, totaling 1.22 billion yuan, with a net profit of 3.05 billion yuan, reflecting a 40% payout ratio [3] Group 3: Industry Leaders and Their Performance - China Mobile reported a revenue of 543.8 billion yuan and a net profit of 84.2 billion yuan, proposing an interim dividend of 2.75 HKD per share, totaling approximately 54.2 billion yuan [4] - China Unicom achieved a revenue exceeding 200 billion yuan and a profit of 17.7 billion yuan, proposing a dividend of 0.1112 yuan per share, totaling around 3.48 billion yuan [5] - CATL, benefiting from dual business segments, reported a revenue of 178.9 billion yuan and a net profit of 30.5 billion yuan, proposing a cash dividend of 10.07 yuan per 10 shares, totaling 4.57 billion yuan [5] - WuXi AppTec achieved a revenue of 207.99 billion yuan and a net profit of 85.61 billion yuan, proposing a cash dividend of 3.5 yuan per 10 shares, totaling 1.003 billion yuan [5]

Core Viewpoint - Shandong Unicom emphasizes customer interaction through monthly "Unicom Customer Day" events, enhancing service quality and product offerings to meet customer needs [1][8] Group 1: Customer Engagement Activities - The "Unicom Customer Day" in July focused on "Integrating New Ecosystems," featuring local activities that highlight Unicom's services and products [1] - The summer promotion included a "National Subsidy + Unicom Subsidy for Mobile Phone Purchase" campaign, catering to increased demand from parents buying phones for their children [2] Group 2: Service Quality Improvement - The "General Manager's Practical Action" initiative aims to enhance network quality and customer service, addressing key areas such as network reliability and user-friendly services [4] - Customers reported improved call quality in specific locations, indicating successful implementation of network enhancements [4] Group 3: Community and Cross-Industry Collaboration - Shandong Unicom is expanding its service offerings through partnerships with local businesses, providing diverse services such as health check-ups and fraud prevention education [6] - The company is committed to creating a multi-faceted service ecosystem that extends beyond telecommunications to meet broader community needs [6] Group 4: Future Plans - The company plans to continue the "General Manager's Practical Action" initiative, focusing on innovative service models and quality improvements to align with customer expectations [8]