762: Expanding Connectivity Base Will Support Future Share Price Upside

Analysts have nudged their price target for China Unicom Hong Kong slightly higher to about $11.56 from roughly $11.52, citing marginally stronger expectations for revenue growth and profit margins, despite an unchanged discount rate and a modestly lower projected future P/E multiple.

What's in the News

• Chief Executive Mr. Chen Zhongyue resigned effective 29 October 2025, citing a change in work arrangement, with the Board noting his role in driving reforms, innovation, and high quality development during his tenure (company announcement).
• Third quarter 2025 operating update reported 1.23 billion total connectivity subscribers, including 225 million 5G package users and 703 million IoT terminal connections, underscoring continued scale expansion in core networks (company operating results).
• Virtual 5G industry private networks reached 21,688 customers in the third quarter of 2025, highlighting rapid enterprise uptake of customized network solutions (company operating results).
• A Board meeting held on 22 October 2025 focused on reviewing the financial results for the nine months ended 30 September 2025, indicating an upcoming update on year to date performance trends (board meeting notice).

Valuation Changes

• The fair value estimate has risen slightly to about HK$11.56, up from roughly HK$11.52 per share.
• The discount rate remains unchanged at 6.9 percent, implying no adjustment to the required return assumption.
• The revenue growth forecast has edged higher to approximately 3.23 percent from about 3.22 percent, reflecting a marginally more optimistic top line outlook.
• The net profit margin assumption has increased slightly to around 6.02 percent from roughly 5.96 percent, indicating a modest improvement in expected profitability.
• The future P/E multiple has fallen slightly to about 15.08x from approximately 15.20x, suggesting a marginally less generous valuation multiple applied to future earnings.