Event: The company released its report for the first quarter of 2024 on April 19. The company realized an operating revenue of 99.496 billion yuan in the first quarter of 2024, up 2.3% year on year; The net profit attributable to the parent company was 2.447 billion yuan, up 8.0% year on year; The total profit reached 7.169 billion yuan, up 10.0% year on year, maintaining a double-digit growth rate; The company realized EPS (basic) of 0.078 yuan.
Revenue and performance improved steadily, and reform and innovation continued to advance. In Q1 2024, the company's operating revenue will reach 99.496 billion yuan, up 2.3% year on year, and its main business revenue will reach 89.043 billion yuan, up 3.4% year on year; Net profit attributable to the parent company reached 2.447 billion yuan, up 8.0% year on year; The total profit reached 7.169 billion yuan, up 10.0% year on year, maintaining a double-digit growth rate; In 2024, Q1's online communication business will achieve revenue of 62.304 billion yuan; The revenue of the digital intelligence business reached 23.215 billion yuan, accounting for 26.1% of the main business revenue, and the revenue structure was constantly optimized.
The company has rapidly developed computer network digital intelligence business and accelerated the construction of digital information infrastructure. In terms of computing network, digital intelligence business, the company will focus on improving the differentiation ability of computing network integration in 2024Q1, and the revenue of Unicom cloud will reach 16.7 billion yuan, with a year-on-year growth of 30.3%; Efforts were made to strengthen the base of computing network digital intelligence capability, and the revenue of the data center reached 6.6 billion yuan, up 4.1% year on year; Focus on enabling the deep integration of digital economy and real economy, and the cumulative number of 5G industry virtual private networks serving 10030 customers; We will give full play to the synergy advantages of cloud network and data resources, and achieve 70% rapid growth in the revenue of network information security. In terms of digital information infrastructure construction, the company's 5G IF base stations reached 1.27 million, and the network coverage level continued to improve; Deploy the "1+N+X" overall intelligent computing planning layout, and promote the transformation and upgrading of intelligent computing power demand; Actively layout emerging industries such as artificial intelligence, low altitude economy and digital intelligence application, and increase scientific and technological innovation and core technology research. In the first quarter, 362 patents were granted, steadily increasing.
The scale of basic business continues to expand, and the user structure has improved significantly. The number of mobile users reached 337 million, including 269 million 5G package users, and the penetration rate of 5G package increased to 80%. The number of Internet of Things connections reached 529 million, a net increase of 34.6 million; The number of fixed network broadband users reached 115 million, of which the net increase of gigabit users was 2.11 million, the penetration rate of gigabit broadband was increased to 23%, and the user structure was significantly improved.
Investment suggestion: The company insists on high-quality development, focuses on network power and digital China, and the basic business of network communication develops steadily, and the user structure improves significantly. The company deeply implemented nine key actions, including the development of networking communication, the integration of computing and networking, the development of digital intelligence applications, international development, big data innovation, artificial intelligence innovation, new digital infrastructure, high-quality services and network information security, and accelerated the construction of world-class technology service enterprises with global competitiveness. We maintain the profit forecast. It is estimated that the company will achieve an operating revenue of 4023.77/430.529/456.365 billion yuan in 2024/25/26, with a year-on-year growth of 8%/7%/6%; The net profit attributable to the parent company was 9.15/10144/11.175 billion yuan, up 12%/11%/10% year on year. Maintain a "highly recommended" investment rating.
Risk tip: industry regulatory policy risk, market competition risk, satellite Internet investment demand exceeding expectations
