Jinwu Financial News | According to Zheshang Securities Research, China Communications Services (00552) originated from the restructuring of China's telecom industry and relied on shareholders of the three major operators. China Telecom/Mobile/Unicom held 48.99%/8.78%/3.41% of the shares respectively. According to the bank, in the first half of 2023, the company's TIS business grew 7.5% year on year, accounting for 51.5%, and became the ballast stone driving revenue growth; the BPO business grew 0.9% year on year, accounting for 29.7%; and ACO business grew 8.6% year on year and continued to maintain a good growth trend, accounting for 18.8%. The company's main customer groups include telecom operators, non-operator group customers, and overseas markets. In the first half of 2023, the telecom operator and non-operator customer attraction market grew steadily by two-wheel drive. Telecom operator revenue grew 7.5% year on year, accounting for 54.6%; non-operator customer attraction market revenue grew 3.6% year on year, accounting for 43.2%; overseas markets progressed steadily, with revenue growth rate of 1.2% year on year, accounting for 2.1%.
The bank continued that since its listing, the company has maintained a high dividend ratio. The 2022 dividend payment rate reached 40.41%. According to the closing price on February 16, 2024, the 2022 dividend rate is about 6.5%. The company attaches great importance to shareholder returns, optimizes dividend policies, and comprehensively considers attributes such as steady growth in performance and improved profits. The company's dividend returns will be attractive for a long time.
The bank said that as the main force in new infrastructure in the digital economy era, a leading smart city service leader, a leading enterprise in production and data services, and a trusted expert in smart operation, the company will achieve steady growth in various main businesses. The bank expects the company's 2023-2025 revenue to be 1494, 1582, and 167.3 billion yuan, up 6.2%, 5.9%, and 5.7% year on year; net profit to mother will be 36, 3.9, 4.2 billion yuan, up 7.7%, 7.5%, and 7.2% year on year. The current market value (February 16, 2024) corresponds to the 23-25 PE of 5.67, 5.27, and 4.92 times, covered for the first time, giving it a “buy” rating.