Matters:
The three major operators have all disclosed the financial statements of 2021. In 2021, China Mobile achieved a revenue of 848.3 billion yuan (+ 10.4%), a net profit attributable to the parent company of 115.9 billion yuan (+ 7.5%), and a cash dividend ratio of 60% in 2021 China Telecom Corporation Limited(601728) in 2021, the revenue was 439.6 billion yuan (+ 11.7%), and the net profit attributable to the parent company was 25.95 billion yuan (+ 24.4%). China Telecom Corporation Limited(601728) plans to achieve a dividend ratio of 60% in 20216 Lvjing Holding Co.Ltd(000502) 021 achieved revenue of 327.9 billion yuan (+ 7.9%); The net profit attributable to the parent company is 6.31 billion yuan (+ 14.2%), and the proportion of cash dividends in 6 Lvjing Holding Co.Ltd(000502) 021 is 46%.
Guoxin communication view:
Revenue side: 1) industrial digitization is becoming a new engine for business performance growth. 2) Further promote Gigabit networks and smart home value-added services, and the growth of China mobile home broadband service exceeded expectations. 3) Mobile business stabilized and rebounded. The ARPU value of 5g package can boost the mobile ARPU value in the short term.
Cost side: 1) precise investment, and the total asset scale gradually becomes “light”. The focus of investment has shifted from 5g network to digital transformation. 2) pay attention to the research of new technologies such as energy conservation and low carbon, and the operation support cost has been reasonably controlled. 3) Increase R & D investment and employee incentives to promote the good development of innovative business.
It is expected to continuously increase the dividend: both China Mobile and China Telecom Corporation Limited(601728) plan to increase the dividend ratio from 60% in 21 years to 70% in the next three years. Under the idea of steady investment, operators increase dividends and effectively improve shareholder returns.
Investment suggestion: the valuation of Pb of the three operators is lower than the average level of global operators. With the continuous recovery of roe, Pb is expected to be repaired. From the perspective of business scale, China Mobile is relatively ahead, from the perspective of cloud resources, China Telecom Corporation Limited(601728) has obvious advantages, and from the perspective of profit elasticity, China United Network Communications Limited(600050) has a large space. Key recommendations: China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) .
Risk warning: 5g development is not as expected; The development of innovative business is less than expected; The impact of the epidemic has intensified.
