CHINA COMMUNICATIONS SERVICES(00552.HK):STEADY 1H23 EARNINGS COMPUTING POWER INFRASTRUCTURE CONSTRUCTION MAY EXCEED EXPECTATIONS "ACCUMULATE"
CHINA COMMUNICATIONS SERVICES(00552.HK):STEADY 1H23 EARNINGS COMPUTING POWER INFRASTRUCTURE CONSTRUCTION MAY EXCEED EXPECTATIONS "ACCUMULATE"
We maintain the investment rating as "Accumulate" and TP at HK$4.50. Considering the margin of safety from relatively high dividend yield and the opportunities brought by computing power infrastructure and AI, we maintain the investment rating as "Accumulate" and TP at HK$4.50.
我們將投資評級維持在 “累積”，目標價維持在4.50港元。考慮到相對較高的股息收益率帶來的安全幅度以及計算能力基礎設施和人工智能帶來的機會，我們將投資評級維持在 “累積”，目標價爲4.50港元。
Steady revenue and profit growth, with expected steady dividend growth. Revenue and shareholders' net profit in 1H23 were RMB73,170 million (+5.7% yoy) and RMB2,034 million (+7.3% yoy), respectively, in line with market expectations. We believe the Company's net profit will continue to grow steadily over the next few years, thanks to strong demand from data center construction, and the Company's sound business strategy of focusing on high quality and high margin projects. Given the healthy cash position, and the Company's willingness to improve shareholders' return, we expect dividend payout ratio to increase continuously in the next few years.
收入和利潤穩步增長，預計股息將穩定增長。23年上半年的收入和股東淨利潤分別爲人民幣731.70億元（同比增長5.7％）和人民幣20.34億元（同比增長7.3％），符合市場預期。我們認爲，該公司的淨利潤將在未來幾年內繼續穩步增長，這要歸功於數據中心建設的強勁需求，以及公司專注於高質量和高利潤項目的健全業務戰略。鑑於良好的現金狀況以及公司提高股東回報的意願，我們預計未來幾年股息支付率將持續提高。
We expect the Company's computing power infrastructure services to exceed market expectations. As the main force of the country's digital infrastructure, the Company achieved excellent performance in data center, cloud services and 5G+ in 1H23, with new contracts increasing by more than 50%. Among them, strategic emerging industries are booming, and new contracts signed in 1H23 account for more than 27% of the total number of new contracts signed, with amount exceeding 27 billion. China Telecom / China Mobile/ China Unicom plan to increase their CAPEX on computing power by 39.3%/35%/20.2% yoy in 2023, internet enterprises and government enterprises are also actively involved in the construction of data center and AIGC.
我們預計該公司的計算能力基礎設施服務將超出市場預期。作爲該國數字基礎設施的主力軍，該公司在23年上半年在數據中心、雲服務和5G+方面取得了優異的表現，新合同增長了50％以上。其中，戰略性新興產業蓬勃發展，23年上半年簽訂的新合同佔新籤合同總數的27％以上，金額超過270億美元。中國電信/中國移動/中國聯通計劃在2023年將其計算能力資本支出同比增長39.3％/35％/20.2％，互聯網企業和政府企業也積極參與數據中心和AIGC的建設。
In particular, compared with traditional data centers, the construction of intelligent data center has a higher growth. Considering the Company's continuous investment in research and development, coupled with explosive growth of computing power demand from cloud computing and AI large models, we expect the Company's TIS business growth may exceed market expectations.
特別是，與傳統數據中心相比，智能數據中心的建設有更高的增長。考慮到公司對研發的持續投資，加上雲計算和人工智能大型模型對計算能力的需求爆炸式增長，我們預計該公司的TIS業務增長可能會超過市場預期。
Catalysts: Increase in dividend payout ratio; better-than-expected growth of data center construction.
催化劑：提高股息支付率；數據中心建設增長好於預期。
Risks: Lower-than-expected CAPEX investment of telecom operators; weaker-than-expected demand from non-operator customers.
風險：電信運營商的資本支出投資低於預期；非運營商客戶的需求低於預期。
譯文內容由第三人軟體翻譯。