\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 728 China Telecom Corporation Limited(601728) )
Event overview: on April 20, 2022, the company released the first quarterly report of 22 years, realizing an operating revenue of 118576 billion yuan, a year-on-year increase of 11.53%; The net profit attributable to the parent company was 7.223 billion yuan, a year-on-year increase of 12.14%; The net profit deducted from non parent company was 7.985 billion yuan, with a year-on-year increase of 10.39%.
The performance continued to grow well, and the revenue and net profit maintained double-digit growth
22q1 company achieved a revenue of 118576 billion yuan (year-on-year + 11.53%), of which the service revenue was 110024 billion yuan (year-on-year + 9.9%), and the net profit attributable to the parent company was 7.223 billion yuan (year-on-year + 12.14%), which continued the good trend of double-digit growth of revenue (11.34%) and net profit (24.44%) for 21 years.
The broadband mobile business has improved in an all-round way, and the growth of industrial digitization has accelerated
The price of mobile communication services increased steadily. 22q1 achieved a revenue of 49.014 billion yuan, a year-on-year increase of 5.0%; The number of mobile users increased by 7.11 million to 380 million, and the number of 5g users increased by 22.95 million to 211 million, with a penetration rate of 55.5%; ARPU of mobile users was 45.1 yuan, a slight decrease of 1.10% year-on-year.
The business volume and price of fixed network and smart home increased simultaneously. 22q1 achieved a revenue of 29.645 billion yuan, a year-on-year increase of 4.9%, of which the income of smart families increased by 22.5% year-on-year, driving the year-on-year increase of broadband comprehensive ARPU by 0.86% to 46.7 yuan; The number of wired broadband users increased by 3.4 million to 173 million. The growth of digital industry has accelerated. 22q1 achieved a revenue of 29.414 billion yuan, a year-on-year increase of 23.2%, an increase of 3.8pct over the whole year of 21 years, and the revenue accounted for 26.7% of the communication service revenue.
Accurate investment of costs and expenses and increase R & D investment
The company’s 22q1 operating cost was 81.780 billion yuan, a year-on-year increase of 12.1%, mainly due to active support for 5g and industrial digital development, moderate increase in capacity-building, and increase in network operation and support costs. In terms of expense rate, the sales / management / R & D / financial expense rate was 12.01% / 8.26% / 0.94% / 0.16% respectively, with a year-on-year increase of + 0.07pct / – 0.33pct / + 0.27pct / – 0.35pct. On the sales side, the main reason is to increase the investment in marketing resources during the 5g development opportunity period; On the R & D side, the main reason is that the company strengthened scientific and technological innovation, strengthened the R & D of core technologies such as cloud network integration and 5g, and strengthened the introduction of high-tech talents, with a year-on-year increase of 56.8% in R & D expenses; On the financial side, mainly due to the improved statement structure of A-share listing and financing, the scale of interest bearing liabilities decreased significantly, the company’s operating performance and cash flow were good, and the financial expenses decreased by 64.2% year-on-year.
Investment suggestion: Industrial digitization has become an engine of growth, and the company is about to enter a high-quality development stage. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 30.259349074075 billion yuan respectively, the corresponding PE multiple is 12x / 10x / 9x, and the valuation center of the company since its listing is 15 times. Maintain a “recommended” rating.
Risk tip: the effect of co construction and sharing is not as expected; The development of industrial digitization is less than expected
