China Unicom (600050) Annual Report 2018 Comment: Performance Meets Expectations

China Unicom (600050) Annual Report 2018 Comment: Performance Meets Expectations

In 2018, the company’s main business 杭州桑拿 income was RMB 26.27 million, an annual increase of 5.

9%.

The total profit reached RMB 121 trillion, and the net profit attributable to the parent company reached RMB 41 trillion, an increase of 855%, which resulted in a cash dividend of 0.

0533 yuan (including tax).

  Achieve high growth in performance and maintain steady growth in mobile and fixed-line businesses.In 2018, the company continued to promote the Internet-based transformation of its operations and deepened its 2I2C business cooperation with Internet companies to achieve market segmentation needs, optimize the launch of differentiated products, and solve large-scale problems.Demand from traffic users, mobile main business income reached RMB 1,651 trillion, an increase of 5 over the same period last year.

5%.

The company continues to optimize its converged 杭州夜网 product system, mainly promotes high-bandwidth products, highlights content pull, and continuously enriches mixed high-quality video. The development of fixed-line broadband business continues to improve. The revenue from fixed-line main business is RMB 42.3 billion, which is basically the same as last year.

  The overall market for 4G users and broadband users has steadily increased in 2018, and the company’s 4G users have a net increase of 45.05 million, reaching a total of 2.

200 million households, the market share of 4G users increased by 1.

3%.

4G users accounted for 70% of mobile billing users, an increase of more than 8%.

The ARPU for mobile billing users is RMB 45.

7 yuan, a decrease from the same period last year.

The number of broadband users increased by 4.34 million, an increase of 234% each year to 80.88 million, and the broadband users received ARPU for RMB 44.

6 yuan, FTTH users accounted for 82%, an increase of 4 each year.

5%.

  The reform of mixed ownership has been gradually implemented, and 5G-scale pilot companies have actively promoted in-depth cooperation with strategic investors.

With Tencent, Ali, Baidu, Jingdong, Didi and other companies continue to promote Internet connection and cooperation, with the development model of reducing and thin compensation effectively reach new users, especially the youth market.

The short-term net value-added of 2I2C users is 44 million, a total of about 94 million. The company actively promotes 5G field testing and industrial application exploration in key cities, and joins the industry chain to share new dividends brought by 5G.

  We are optimistic about the company’s gradual development. After the completion of the mixed purchase and maintenance of the “buy” rating, the company’s I2IC scope has gradually expanded. The flow bank has created a platform advantage to promote customer stickiness. Voice management has become an inevitable trend towards data management by traffic management.

From the financial report point of view, the company’s marginal improvement is obvious, performance has improved significantly, free cash flow hits a record high, we are optimistic about the company’s transformation and marginal improvement in performance and estimated double-rising. It is expected that EPS in 2019/2020/2021 will be 0.

18/0.

25/0.

30 yuan, maintain “Buy” rating.