The Zhitong Finance App learned that GF Securities released a research report saying that the three major operators held annual work meetings to focus on reform and innovation and strengthen high-quality development. Since this week, the three major operators have successively held the 2025 work conference, highlighting the comprehensive strengthening of new infrastructure construction, continuing reform and innovation, and emphasizing the importance of subsequent high-quality development. The fundamentals of operators have basically bottomed out in 2024, and a steady recovery is expected in the 25th year. Continue to recommend investment opportunities for low-volatility dividend asset operators in the context of abundant liquidity.

The main views of GF Securities are as follows:

Conference content summary:

(1) Comprehensively strengthen the construction of new infrastructure: China Mobile proposed to consolidate the leading edge of new information infrastructure, accelerate the release of AI+ scale effects, cultivate growth momentum in emerging fields, and continue to promote value creation and steady growth. China Telecom proposed continuing to thoroughly implement the cloud to digital transformation strategy. China Unicom proposed that it is necessary to comprehensively strengthen the construction of new infrastructure; strengthen networked communication, digital computing, and global infrastructure construction, and improve the efficiency of infrastructure operation.

(2) Continuing reform and innovation: China Mobile proposed vigorously promoting the deep integration of scientific and technological innovation and industrial innovation, and concentrating on key core technologies. China Telecom pointed out that it will promote the concentration of state-owned capital in forward-looking strategic emerging industries; increase the share of revenue and value added in strategic emerging industries. China Unicom pointed out that it is necessary to comprehensively promote the integration and innovation of digital technology. Accelerate the promotion of “5+5” key projects for self-reliance and self-improvement in high-level science and technology to fight new industries.

(3) Strengthen high-quality development: China Mobile proposes to firmly grasp the priority of high-quality development, take stock management and value management based on market segmentation as strategic and long-term tasks, and continue to promote value creation and steady growth. China Telecom proposed that high-quality development should be achieved around six areas, including strengthening high-quality scientific and technological innovation, strengthening the supply of high-quality products and services, strengthening risk prevention, and strengthening reforms in key areas. China Unicom pointed out that with “ten focuses” as a key task throughout the year, it strives to take greater steps to promote high-quality enterprise development.

The fundamentals of operators have basically bottomed out, and a steady recovery is expected in 25 years.

On December 23, the Ministry of Industry and Information Technology announced the economic performance of the communications industry for the first 11 months of 2024. Telecom business revenue grew steadily. From January to November, cumulative telecom business revenue (compared to the sum of the three major operators) increased 2.6% year-on-year, and stabilized at 2.6% for two consecutive months, showing clear signs of stabilization. Revenue from the mobile data traffic business fell 1.3% year on year in January-November, and the decline narrowed; revenue from the fixed-line broadband business increased 5.0% year on year and the growth rate was stable; revenue from emerging businesses increased 7.9% year on year in January-November, and the marginal growth rate continued to decline. The recovery of emerging businesses lags behind macroeconomic policies, and the growth rate is expected to pick up in 25 years.

Continue to recommend investment opportunities for low-volatility dividend asset operators in the context of abundant liquidity.

(1) In terms of policy, next year's liquidity guidelines are optimistic. The yield on long-term treasury bonds is still low, and the yield of stable high-dividend asset operators is significantly higher than that of long-term treasury bonds.

(2) In terms of capital, patient capital such as insurance capital continues to flow in. On the one hand, some insurance capital is still in the transition phase of the new accounting standards; on the other hand, driven by the “good start” phenomenon, the fourth quarter/first quarter is usually a key point for insurance capital to increase its position in dividend stocks.

(3) On the fundamentals, operators have a steady medium- to long-term business, continue to enhance their scientific and technological innovation capabilities, and continue to promote mergers and acquisitions in key fields such as quantum, satellite, and data elements; on the dividend side, operators pay great attention to shareholders' interests, continue to increase their dividend ratio, and continue to recommend.

Recommended attention: China Mobile (600941.SH,00941), China Telecom (601728.SH,00728), China Unicom (600050.SH,00762).

Risk warning: risk reduced by international cooperation; risk of 6G and computing power technology iteration falling short of expectations; risk of satellite internet construction falling short of expectations; risk of tightening AIGC regulatory policies.