Industry events: Recently, the three major operators released 2022q1 performance report. China Mobile’s revenue reached 227.3 billion yuan, a year-on-year increase of 14.6%; The net profit attributable to the parent company was 25.6 billion yuan, a year-on-year increase of 6.5%.
China Telecom Corporation Limited(601728) revenue reached 118576 billion yuan, a year-on-year increase of 11.5%; The net profit attributable to the parent company was 7.223 billion yuan, a year-on-year increase of 12.1% China United Network Communications Limited(600050) revenue reached 89.022 billion yuan, with a year-on-year increase of 8.2%, and the net profit attributable to the parent company was 2.031 billion yuan, with a year-on-year increase of 20.0%. The operating performance of the three operators has made steady progress, the performance is in line with expectations, the future performance is high, and the growth momentum is strong.
All businesses of operators grew together, and the scale of it side continued to expand during the 5g harvest period.
In terms of 5g network penetration, the number of 5g users increased by 3.3 billion, and the number of 5g network users increased by 2.65 billion, respectively, with a net penetration of 6.7 billion and 9.75 billion, respectively. ARPU of mobile users reached 47.5 yuan, a year-on-year increase of 0.3%. In the home market, the number of wired broadband users reached 249 million, a net increase of 8.99 million. The comprehensive ARPU of wired broadband and home broadband were 32.4 yuan and 37.8 yuan respectively, with a year-on-year increase of 1.8% and 5.3%. The penetration rate of mobaihe continues to increase, and the scale advantage of smart family is expected to be transformed into value advantage. In the government enterprise market, the revenue of dict was 23.7 billion, a year-on-year increase of 50.9%.
The company actively expands the scale of “network + cloud + dict” and builds the differentiated advantages of mobile cloud.
in terms of China Telecom Corporation Limited(601728) mobile communication, the revenue was 49.014 billion yuan, with a year-on-year increase of 5.0%. The net increase of mobile users was 7.11 million, reaching about 380 million, of which the net increase of 5g package users was 22.95 million, reaching about 211 million, with a penetration rate of 55.5%, and the ARPU of mobile users was 45.1 yuan. In terms of fixed network and smart family, the income reached 29.645 billion yuan, a year-on-year increase of 4.9%, the number of wired broadband users reached 173 million, the income of smart family increased by 22.5% year-on-year, the value contribution of smart family continued to improve, and the comprehensive ARPU of broadband reached 46.7 yuan. In terms of industrial digitization, the revenue reached 29.414 billion yuan, a year-on-year increase of 23.2%, and continued to give full play to the market competitiveness of Tianyi cloud.
in terms of China United Network Communications Limited(600050) mobile services, the revenue reached 41.986 billion yuan, an increase of 2.2% year-on-year.
The total number of large connection users reached 779 million, with a net increase of 7.54 million, including 171 million 5g package users. In terms of broadband services, fixed line broadband access revenue increased by 5.5% year-on-year to 11.5 billion yuan. In terms of Internet of things business, the number of Internet of things terminal connections reached 313 million, and the income of Internet of things business reached 2.121 billion yuan, a year-on-year increase of 40.7%.
Operators strengthen R & D, make continuous breakthroughs in growth, and their performance and valuation are expected to rise.
In the first quarter of 2022, China Mobile’s R & D expenditure was 2.339 billion yuan, a year-on-year increase of 36.15%, enhancing the all-round development of hBN China Telecom Corporation Limited(601728) R & D expenses reached 1.118 billion yuan, an increase of 56.8% over the same period. We strengthened the R & D of core technologies such as cloud network integration and 5g The number of China United Network Communications Limited(600050) authorized patents increased by 83, reaching 349 in total.
Three major operations, strengthen research and development in key core areas, build a comprehensive digital information infrastructure, build a cloud base in the computing age, and develop into a service-oriented, scientific and technological and security enterprise with high quality; At the same time, the margin of operating performance indicators is better, 5g scale production and construction, “cloud to digital transformation”, increasing R & D to help the company’s growth continue to highlight, and the operating performance and valuation are expected to rise. It is recommended to pay attention to the investment opportunities of operators and recommend China Mobile (a + H).
The risk indicates that the tob growth of operators is lower than expected; 5g large-scale promotion is less than expected; Uncertain risk of China’s foreign policy
