Investment Rating - The report maintains a "Buy-A" rating for China Unicom (600050.SH) [1] Core Views - China Unicom's H1 2025 revenue reached 200.2 billion yuan, a year-on-year increase of 1.5%, with a total profit of 17.7 billion yuan, up 5.2% year-on-year, and a net profit attributable to shareholders of 6.349 billion yuan, also up 5.1% year-on-year [2][3] - The growth in mobile and broadband connections is robust, with a total user base exceeding 1.2 billion, including a net increase of over 11 million users, marking a historical high [3] - The company is focusing on AI opportunities and enhancing its data center capabilities, with a revenue of 37.6 billion yuan from cloud services, up 4.6% year-on-year [4][10] - Capital expenditure for 2025 is planned at 55 billion yuan, a decrease of 10.4% year-on-year, with a focus on efficient investment strategies [5] Summary by Sections Financial Performance - In H1 2025, China Unicom achieved a revenue of 200.2 billion yuan, with a profit total of 17.7 billion yuan and a net profit of 6.349 billion yuan, reflecting year-on-year growth of 1.5%, 5.2%, and 5.1% respectively [2][3] - The company anticipates continued revenue and profit growth, with projected net profits of 9.521 billion yuan, 10.038 billion yuan, and 10.624 billion yuan for 2025, 2026, and 2027 respectively, indicating growth rates of 5.4%, 5.4%, and 5.8% [11] User Growth and Service Expansion - The user base for mobile and broadband services has reached historical highs, with mobile and broadband users exceeding 480 million and IoT connections reaching 690 million [3] - The adoption of "dual-gigabit" services is significant, with 50% of users opting for this offering, and the penetration rate of integrated services surpassing 77% [3] Strategic Focus - The company is enhancing its AI capabilities and expanding its cloud market share, with a focus on building a robust international network and data center infrastructure [4][10] - China Unicom plans to invest in AI infrastructure and major projects, with a special budget allocation for AI initiatives [11] Capital Expenditure and Cost Management - The planned capital expenditure for 2025 is 55 billion yuan, reflecting a 10.4% decrease year-on-year, with a focus on optimizing operational costs [5] - The company aims to maintain stable cost ratios, with a significant focus on improving data center resource utilization [10]