Key investment points
From January to March 2022, the revenue of the telecommunications industry increased by 9.3%, reaching a new high
From January to March 2022, the telecom business revenue totaled 393.5 billion yuan, with a year-on-year increase of 9.3%. The growth rate continued to reach a new high, further increased by 0.3pct compared with the year-on-year growth rate of 9.0% from January to February, and the single month revenue in March increased by 9.9% year-on-year; From January to march in 2022, the total amount of telecom services calculated according to the price of the previous year increased by 23.9% year-on-year. The cumulative revenue of telecom services has continued to grow from 0.0% from January to August 2019 to 9.0% from January to February 2022. Our previous judgment on the formation of the inflection point of telecom service revenue has been verified, and the high-quality development trend is clear. Under the trend of digital transformation and 5g evolution, we continue to be optimistic about the development of operators during the 14th Five Year Plan period.
Emerging / mobile traffic / fixed broadband pulled 5.9/0.7/1.3pct respectively
Emerging business: revenue increased by 36.3% year-on-year, and the growth rate continued to reach a new high. The proportion of telecom business revenue increased to 20.3%. The revenue of cloud computing, big data, IDC and Internet of things increased by 138.1%, 59.1%, 19.8% and 23.9% year-on-year. Mobile data traffic business: the revenue increased by 1.7% year-on-year. From January to March, the number of mobile users / 5G users increased by 18.2 million / 48.11 million respectively, and the penetration rate of 5g mobile phone users was 24.3%, an increase of 2.7 PCT compared with the end of 2021. Fixed Internet broadband services: revenue increased by 8.7% year-on-year, with a net increase of 15.13 million users from January to March.
It has a high dividend yield and improves the dividend return of shareholders
Current dividend yield: H mobile 7.4%, H Telecom 6.8%, H Unicom 6.8%; A mobile 3.0% (final dividend only), a telecom 4.3% and China Unicom 2.5%.
Continue to improve the dividend expectation: China Mobile’s dividend payout rate will be 60% in 2021, and it plans to increase to 70% within three years from 2021 China Telecom Corporation Limited(601728) the dividend payout rate will be 60% in 2021, and the interim dividend will be paid in 2022. It is planned that the dividend payout rate will be raised to more than 70% within three years after the issuance and listing of A-Shares China United Network Communications Limited(600050) in 2021, the dividend payout rate was 46%. Previously, in 2021, the Chinese newspaper exchange said to increase the medium-term dividend payout and improve the dividend payout rate.
Investment suggestion: highlight the value of the sector
At present, H shares of China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) 0.80 times, 0.54 times and 0.29 times, lower than 1.08 times, 0.67 times and 0.65 times of the five-year history center, and significantly lower than the global comparable level of 1.64 times. 5g and the new engine of innovation business drive the fundamentals to continue to improve. At the same time, it has a relatively high dividend rate. It continues to be recommended.
Risk warning: the operator’s expenses exceed expectations; 5g application development is not as expected
