Introduction to this report:
The revenue and profit of the three major operators showed a high growth trend, the “number and value” of mobile and broadband users increased simultaneously, and the industrial digital business became the pillar of growth.
Summary:
The revenue and profit of the three operators showed a high growth trend. In 2022q1, the three major operators achieved a total operating revenue of 434917 billion yuan, the operation improved comprehensively, and the growth rate of revenue and profit increased. Among them, China Mobile’s revenue increased by 14.6% year-on-year, China Telecom Corporation Limited(601728) revenue increased by 11.5% year-on-year, and China United Network Communications Limited(600050) revenue increased by 8.2% year-on-year. In terms of profits, the three operators achieved a total net profit of about 37.547 billion yuan, of which China Mobile increased by 6.5% year-on-year, China Telecom Corporation Limited(601728) increased by 10.4% year-on-year and China United Network Communications Limited(600050) increased by 20.6% year-on-year.
The “quantity and value” of mobile and broadband users have risen simultaneously. In 2022q1, the total number of 5g package customers of China Mobile reached 467 million, and the mobile ARPU was 47.5 yuan, a year-on-year increase of 0.3%; The total number of wired broadband customers reached 249 million, with a net increase of 8.99 million in the quarter. The ARPU of wired broadband was 32.4 yuan, a year-on-year increase of 1.8% China Telecom Corporation Limited(601728) 5g package users increased by 22.95 million, reaching about 211 million, with a penetration rate of 55.5%, and the ARPU of mobile users was 45.1 yuan; The number of wired broadband users reached 173 million, and the comprehensive ARPU of broadband reached 46.7 yuan 6 Hainan Jingliang Holdings Co.Ltd(000505) g package users reached 171 million.
Industrial digital business has become the pillar of growth. In 2022q1, China Mobile’s ICT business revenue was RMB 23.7 billion, a year-on-year increase of 50.9% China Telecom Corporation Limited(601728) industry digital business also accelerated growth, with revenue reaching 29.414 billion yuan, a year-on-year increase of 23.2% China United Network Communications Limited(600050) of big computing and big data services have achieved double-digit growth.
Investment suggestions: 1) new infrastructure construction: cloud infrastructure construction has entered a new cycle. Recommend Zte Corporation(000063) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Advanced Fiber Resources (Zhuhai) Ltd(300620) , Henan Shijia Photons Technology Co.Ltd(688313) , Fujian Star-Net Communication Co.Ltd(002396) and others, and benefit from Huagong Tech Company Limited(000988) , Unisplendour Corporation Limited(000938) , etc. 2) Big application singing: popular applications such as cars and smart homes are strong. For the recommended recommendation of the , Quectel Wireless Solutions Co.Ltd(603236) , Meig Smart Technology Co.Ltd(002881) , etc. 3) New energy revolution: empowering the growth of new energy enterprises.
Recommend Shenzhen H&T Intelligent Control Co.Ltd(002402) , Willfar Information Technology Co.Ltd(688100) , Kehua Data Co.Ltd(002335) , Hengtong Optic-Electric Co.Ltd(600487) and others, and benefit from Jiangsu Zhongtian Technology Co.Ltd(600522) , Wenzhou Yihua Connector Co.Ltd(002897) , Shenzhen Envicool Technology Co.Ltd(002837) and others.
Risk tip: 5g landing process may not be as expected, cloud computing development may not be as expected, and traffic business and industrial Internet application development may not be as expected.
