SHSE:600050

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China United Network Communications

Executive Summary

China United Network Communications Limited, together with its subsidiaries, provides various telecommunication services in China.


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has China United Network Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 600050 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

600050

2.6%

CN Wireless Telecom

2.7%

CN Market


1 Year Return

-17.1%

600050

-2.8%

CN Wireless Telecom

17.2%

CN Market

Return vs Industry: 600050 underperformed the CN Wireless Telecom industry which returned -3.3% over the past year.

Return vs Market: 600050 underperformed the CN Market which returned 16.6% over the past year.


Shareholder returns

600050IndustryMarket
7 Day1.6%2.6%2.7%
30 Day-4.0%-0.4%3.3%
90 Day-11.9%-0.8%-2.9%
1 Year-16.4%-17.1%0.9%-2.8%19.1%17.2%
3 Yearn/a0.4%-12.4%3.3%-1.1%
5 Year-46.3%-48.3%-6.4%-23.4%-39.6%-43.0%

Price Volatility Vs. Market

How volatile is China United Network Communications's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China United Network Communications undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 600050 (CN¥5.04) is trading below our estimate of fair value (CN¥10.35)

Significantly Below Fair Value: 600050 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 600050 is poor value based on its PE Ratio (32.8x) compared to the Wireless Telecom industry average (14.2x).

PE vs Market: 600050 is good value based on its PE Ratio (32.8x) compared to the CN market (37.9x).


Price to Earnings Growth Ratio

PEG Ratio: 600050 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 600050 is good value based on its PB Ratio (1.1x) compared to the XA Wireless Telecom industry average (1.7x).


Next Steps

Future Growth

How is China United Network Communications forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600050's forecast earnings growth (21.9% per year) is above the savings rate (3.3%).

Earnings vs Market: 600050's earnings (21.9% per year) are forecast to grow slower than the CN market (23.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 600050's revenue (5.9% per year) is forecast to grow slower than the CN market (16.6% per year).

High Growth Revenue: 600050's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 600050's Return on Equity is forecast to be low in 3 years time (4.7%).


Next Steps

Past Performance

How has China United Network Communications performed over the past 5 years?

24.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 600050 has high quality earnings.

Growing Profit Margin: 600050's current net profit margins (1.6%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: 600050's earnings have grown significantly by 24.4% per year over the past 5 years.

Accelerating Growth: 600050's earnings growth over the past year (7.2%) is below its 5-year average (24.4% per year).

Earnings vs Industry: 600050 earnings growth over the past year (7.2%) exceeded the Wireless Telecom industry 1.6%.


Return on Equity

High ROE: 600050's Return on Equity (3.3%) is considered low.


Next Steps

Financial Health

How is China United Network Communications's financial position?


Financial Position Analysis

Short Term Liabilities: 600050's short term assets (CN¥96.8B) do not cover its short term liabilities (CN¥206.3B).

Long Term Liabilities: 600050's short term assets (CN¥96.8B) exceed its long term liabilities (CN¥33.0B).


Debt to Equity History and Analysis

Debt Level: 600050's debt to equity ratio (3.4%) is considered satisfactory.

Reducing Debt: 600050's debt to equity ratio has reduced from 60.1% to 3.4% over the past 5 years.

Debt Coverage: 600050's debt is well covered by operating cash flow (860%).

Interest Coverage: 600050 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is China United Network Communications's current dividend yield, its reliability and sustainability?

1.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 600050's dividend (1.2%) is higher than the bottom 25% of dividend payers in the CN market (0.42%).

High Dividend: 600050's dividend (1.2%) is low compared to the top 25% of dividend payers in the CN market (1.88%).


Stability and Growth of Payments

Stable Dividend: 600050's dividend payments have been volatile in the past 10 years.

Growing Dividend: 600050's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.4%), 600050's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 600050's dividends in 3 years are forecast to be well covered by earnings (41.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

China United Network Communications has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Ke Bing Zhu
CFO & Secretary1.83yrsno datano data
Ai Hua Jiang
Head of Accounting & Finance Managerno datano datano data
Yanzhou Mai
Senior Vice President2.33yrsCN¥341.70kno data
Baojun Liang
Senior Vice President2.33yrsCN¥341.70kno data
Yunjun Fan
Senior VP & General Counsel1.42yrsno datano data

2.1yrs

Average Tenure

50yo

Average Age

Experienced Management: 600050's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xiaochu Wang
Chairman of the Board of Directorsno dataCN¥673.30kno data
Fushen Li
Director9.08yrsCN¥604.80kno data
Zhang Baoying
Member of Supervisory Board0.33yrCN¥196.00kno data
Tingjie Lu
Independent Director4.08yrsCN¥131.70kno data
Zhaojun Yin
Director2.33yrsno datano data
Jian Xin Chen
Independent Director2.33yrsno datano data
Shi Dong Feng
Independent Director2.33yrsno datano data
Xiao Gen Wu
Independent Director2.33yrsno datano data
Shan Lu
Director2.33yrsno datano data
Jian Wen Liao
Director2.33yrsno datano data

2.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 600050's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China United Network Communications Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China United Network Communications Limited
  • Ticker: 600050
  • Exchange: SHSE
  • Founded: 2001
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: CN¥156.369b
  • Shares outstanding: 31.03b
  • Website: https://www.chinaunicom-a.com

Number of Employees


Location

  • China United Network Communications Limited
  • No. 21, Financial Street
  • Xicheng District
  • Beijing
  • 100033
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
600050SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYOct 2002
600050XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYOct 2002

Biography

China United Network Communications Limited, together with its subsidiaries, provides various telecommunication services in China. It offers mobile broadband, fixed-line broadband, GSM, and fixed-line local telephone services; and information and communication technology, data communications, and other related value-added services. The company also provides voice, basic traffic, network element rental, Internet access, and industry SMS; information consulting and design, IT infrastructure hosting, IT application development and integration, BPO and call center outsourcing, IT outsourcing maintenance, information security, mobile information, advertising media, and broadband business platform services; integrated video surveillance; Internet data center; integrated video conferencing; and network security products. In addition, it offers cloud computing and Internet of Things services. The company has approximately 284 million mobile subscribers, including 175 million 4G subscribers, 77 million fixed-line broadband subscribers, and 60 million fixed-line local telephone subscribers. China United Network Communications Limited has strategic partnership with iQIYI, Inc. China United Network Communications Limited was founded in 2001 and is based in Beijing, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 15:54
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.