The China Telecom Communications sector listing platform maintains a “purchase” rating. Considering the delay in the bidding pace for downstream customer projects, we lowered our original profit forecast. The company's net profit to mother for 2023-2025 is 0.37, 2.31, and 3.23 (original value 2.46, 2.83, 3.27) billion yuan, respectively, and EPS is 0.05, 0.34, 0.47 (original value 0.36, 0.41, 0.48) per share, corresponding to the current stock price PE of 426.8, 67.6, and 48.3 times, respectively. The company is China Telecom Listed platforms in the communications sector are expected to benefit from satellite internet and the blue ocean of the low-altitude economy, and maintain a “buy” rating.
Backed by Telecom Group, the future growth prospects of satellite Internet are bright. On March 18, the company responded to the strategic layout plan in the field of interactive and easy satellite Internet. The company is actively deploying satellite Internet services, and has obvious advantages in the field of wireless private networks in the terrestrial industry. After achieving integrated networking between heaven and earth in the future, it can provide industry users with more efficient, secure, and resilient private networks. Earlier, the company stated in Interactive Easy that the company will actively plan and rely on the Telecom Group's technology accumulation in satellite Internet, continue to follow up and participate in satellite communication related business, and actively participate in research on standards and technology related to satellite Internet. We are optimistic about the company's business layout in the field of satellite communications and the empowerment of the Telecom Group. The prospects for the development of satellite Internet are bright.
Relying on deep technology accumulation in the communications field and actively laying out the field of low-altitude economy According to Interactive Easy, the company is currently actively carrying out research in the field of next-generation communications. It will rely on technology accumulation in the communications field, follow up the development of the low-altitude economy industry, and actively promote research on key technologies and products of low-altitude communication.
We are optimistic about the company's deep technology accumulation in the field of 5G communications, which is expected to benefit the low-altitude economy blue ocean market.
Building intelligent computing centers in many places has great potential for AI in central enterprises
On February 19, the State Assets Administration Commission held a special promotion conference on artificial intelligence for central enterprises, stressing that central enterprises should speed up the layout and development of the artificial intelligence industry and consolidate the foundation for development. According to the company's official account, since 2022, the company has carried out market layout in national hub nodes and data center clusters for national integrated computing power networks such as Beijing-Tianjin-Hebei, Guangdong-Hong Kong-Macao Greater Bay Area, and Cheng-Chongqing, and has built multiple intelligent computing center projects in Chengdu, Tianjin, Changsha, Hainan, etc., with a total computing power of up to 1500 Pflops. As a state-owned enterprise in the communications field, the company is expected to take advantage of its deep advantages in communication planning and design and take advantage of AI.
Risk warning: Industry implementation falls short of expectations; market competition increases risk; company R&D falls short of expectations risk.