Morningstar

China Unicom (Hong Kong) Ltd 00762

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Stock XHKG Rating as of
HK$7.05 +0.23 (3.37%)
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As of Delayed Price Closed

Company Report

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China Unicom's Solid Telecom Core Business Augmented With Growth From Industrial Internet

Dan Baker

China Unicom is one of two original fixed-line telephone companies in China, each with its own traditional territory. It is also the third-largest wireless operator in the country, which had generated the majority of its growth until the past few years when industrial internet (internet data centers, ICT consulting services, and cloud services) has started to drive growth.

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Price vs Fair Value

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00762 is trading within a range we consider fairly valued.
Price
HK$7.05
Fair Value
HK$54.70
Uncertainty
Low
1-Star Price
HK$74.57
5-Star Price
HK$9.60
Economic Moat
Glpj
Capital Allocation
Qlssvpsnj

Bulls Say, Bears Say

Bulls

China Unicom has the potential to lift its operating margin close to its peer China Telecom which would involve a near doubling of margin.

Bears

Larger competitors (China Telecom and China Mobile) may use their scale advantages to make life tough for China Unicom.

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Trading Information

Previous Close Price
HK$6.82
Day Range
HK$6.67–7.05
52-Week Range
HK$4.45–7.76
Bid/Ask
HK$7.04 / HK$7.05
Market Cap
HK$215.72 Bil
Volume/Avg
28.6 Mil / 45.6 Mil

Key Statistics

Price/Earnings (Normalized)
9.31
Price/Sales
0.53
Dividend Yield (Trailing)
5.92%
Dividend Yield (Forward)
5.92%
Total Yield
5.92%

Company Profile

China Unicom is the incumbent fixed-line operator in 10 northern Chinese provinces, as well as the third-largest wireless operator nationwide. As at December 2023, it had 333 million billing wireless customers and around 113 million broadband subscribers. China Unicom also has a growing ICT business. We estimate it has the third largest internet data center business in China and its Cloud Service revenue is also showing very strong growth. It has its own 4G network and shares the radio access function with China Telecom for its 5G network.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Large Value
Total Number of Employees
241,735
Website
https://www.chinaunicom.com.hk

Competitors

Valuation

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Metric
00762
00728
00941
Price/Earnings (Normalized)
 9.3111.3112.26
Price/Book Value
 0.560.871.12
Price/Sales
 0.530.751.45
Price/Cash Flow
 2.13——
Price/Earnings
00762
00728
00941

Financial Strength

Metric
00762
00728
00941
Quick Ratio
 0.600.560.89
Current Ratio
 0.660.610.96
Interest Coverage
 12.9917.0852.29
Quick Ratio
00762
00728
00941

Profitability

Metric
00762
00728
00941
Return on Assets (Normalized)
 4.43%4.23%7.44%
Return on Equity (Normalized)
 8.28%8.01%11.12%
Return on Invested Capital (Normalized)
 7.18%6.94%10.21%
Return on Assets
00762
00728
00941

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