China Unicom (600050) 2018 Annual Report Comment: Revenue Growth Industry Continues to Lead, Profitability Has Bounced Back
Event: The company released its 2018 annual report, which is expected to achieve an operating income of USD 263.7 billion, an increase of 5 years.
9%; EBITDA reached 85.2 billion yuan, a year-on-year increase of 4.
3%; total profit of 121 million US dollars, an annual growth of 408%; net profit attributable to the parent company of 41 million US dollars, a long-term growth of 858%; performance in line with expectations.
The growth rate of the mobile business continued to lead the industry, and the innovation business continued to drive the increase in fixed-line revenue. Affected by the fee reduction policy, the overall growth rate of the industry improved in the second half of the year.
The company deepened its innovation and transformation, and its business growth still led the industry.
Company headquarters revenue growth rate 5.
9%, ahead of the industry average of 3%.
In terms of mobile business, the annual revenue was US $ 1,651 million, with an annual increase of 5.
5%, ahead of the industry average of 0.
In terms of fixed network business, the 南京桑拿网 decline in broadband access revenue has narrowed, and the industrial Internet business revenue has reached 23 billion, an increase of 45%. Benefiting from the rapid growth of innovative business, the overall revenue has been US $ 96.3 billion, an increase of 6%.
The ARPU value has declined, and the 4G share has further increased. Due to the impact of fee reduction policies and fierce competition in the mobile market, the company’s ARPU has declined. Among them, the mobile billing user ARPU 45.
7 yuan, down 2 every year.
3 yuan; broadband access ARPU 44.
6 yuan, down by 1 every year.
In the initial period, the company’s 4G subscribers increased by 45.05 million, reaching a total of 2.
200 million households, the market share increases by 1 every year.
3 digits; net fixed-line broadband subscribers increased by 4.34 million to 80.88 million.
The latest January operating data shows that the company’s 4G subscribers have further increased to 2.
With 2.3 billion households, the number of fixed-line broadband subscribers further increased to 81.51 million.
The rapid growth of 2I2C users continues to deepen content aggregation. Cooperation companies in the industrial Internet and other fields have deepened Internet interconnection cooperation with Tencent, Ali, Baidu, JD.com, Didi, etc. 2I2C user throughput has increased by 44 million net users, reaching a total of about 94 million.
Content aggregation and dating of high-quality video content such as Baidu, iQiyi, and Tencent enhance the competitiveness of IPTV and mobile video services.
Focus on cloud computing, big data, the Internet of Things and AI, and deepen business cooperation with Internet companies.
Established cloud product cooperation with Ali and Tencent. Established joint ventures such as Cloud Granular Intelligence, Cloudscape Cultural Tourism, and Yunji Intelligence with Ali and Tencent to develop network products to accelerate development opportunities in the industrial Internet field.
Maintain “Buy” rating and target price of 9.
96 yuan to maintain the company’s 19-20 EPS is 0.
28 yuan, continued to 2021 EPS forecast 0.
33 yuan, the company is expected to promote continuous growth in performance through business transformation + optimization of corporate governance structure, maintaining a target price of 9.
96 yuan, “Buy” rating.
Risk Warning: Risk of intensified competition in mobile services