\u3000\u30006 Zhongrun Resources Investment Corporation(000506) 00050)
Key investment points
Event: on April 21, China United Network Communications Limited(600050) released the performance report of Q1 in 2022. Q1 achieved an operating revenue of 89.022 billion yuan, a year-on-year increase of 8.2%, and a net profit attributable to the parent company of 2.031 billion yuan, a year-on-year increase of 20.02%. The performance met our expectations.
Q1’s revenue and profit reached a new high in the market, and the contribution of industrial digital business to the overall revenue increment was 74%: China United Network Communications Limited(600050) paid close attention to the general trend of economic and social digital transformation, and the revenue and profit in the first quarter reached the highest level in the same period since the listing. Among them, the realized revenue of industrial Internet business was 19.419 billion yuan, accounting for 23.9% of the overall main business revenue, with a year-on-year increase of 34.8% and 5.011 billion yuan, Accounting for 74% of the overall business revenue increment (Q1 in 2022 increased by 6.75 billion yuan compared with Q1 in 2021), which has become an important driving force for China United Network Communications Limited(600050) performance growth. In terms of mobile business, the number of 5g package users reached 171 million, and the main business income of mobile reached 41.986 billion yuan, an increase of 2.2% year-on-year; With the comprehensive upgrading of the Smart Home Pan integration product system, the fixed network broadband access revenue was 11.5 billion yuan, a year-on-year increase of 5.5%; With the number of Internet of things terminal connections reaching 313 million, the business income of Internet of things reached 2.121 billion yuan, a year-on-year increase of 40.7%. China Unicom cloud accelerated its development, realizing a revenue of 9.12 billion yuan, a year-on-year increase of 114%; IDC realized a revenue of 6.231 billion yuan, a year-on-year increase of 14.5%; Benefiting from the good growth of the computing network business, the main business income of the fixed network increased by 19.1% year-on-year, and the income growth reached a new high in recent years. We believe that by grasping the wave of digitization, industrial digitization has become an important link to drive the development of China United Network Communications Limited(600050) performance. At the same time, traditional mobile and fixed network services are steadily improving. We continue to be optimistic about the steady development of China United Network Communications Limited(600050) future performance.
Integrate into the main battlefield of digital economy construction and expand the upgrading track: under the new opportunities of digital economy, China United Network Communications Limited(600050) accelerate the construction of high-speed ubiquitous, heaven and earth integration, cloud network integration, intelligent agility, green, low-carbon, safe and controllable intelligent comprehensive digital information infrastructure focusing on 5g network, National integrated data center system and national industrial Internet, so as to open up the information connection of economic and social development, At the same time, comprehensively upgrade the new strategy of “big connection, big computing, big data, big application and big security”, and make greater efforts to improve the scale value on the basis of promoting the steady development of basic business.
Profit forecast and investment rating: Based on the steady improvement of the company’s performance and the strong driving force for the development of emerging businesses, we raised the forecast of net profit attributable to the parent company from RMB 7.034/79.048906 billion to RMB 7.059/79.729094 billion in 20222024, with EPS of RMB 0.23/0.26/0.29 respectively. The current market value corresponds to the PE of 15 / 14 / 12 times in 20222024. Based on the continuous development of 5g and digital transformation, we maintain the “buy” rating.
Risk tip: the development of industrial digital business is not as expected; 5g user penetration is lower than expected
