China Unicom (Hong Kong) Limited

DB:XCI Stock Report

Market Cap: €24.1b

China Unicom (Hong Kong) Valuation

Is XCI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of XCI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: XCI (€0.78) is trading below our estimate of fair value (€1.51)

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


Key Valuation Metric

Which metric is best to use when looking at relative valuation for XCI?

Key metric: As XCI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for XCI. This is calculated by dividing XCI's market cap by their current earnings.
What is XCI's PE Ratio?
PE Ratio9.1x
EarningsCN¥20.51b
Market CapCN¥183.20b

Price to Earnings Ratio vs Peers

How does XCI's PE Ratio compare to its peers?

The above table shows the PE ratio for XCI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.1x
O2D Telefónica Deutschland Holding
26.5x-41.1%€7.2b
O2D Telefónica Deutschland Holding
22.9x-11.4%€6.2b
DTE Deutsche Telekom
24.4x15.9%€146.1b
T TELUS
34.8x22.5%CA$32.5b
XCI China Unicom (Hong Kong)
9.1x5.4%€196.4b

Price-To-Earnings vs Peers: XCI is good value based on its Price-To-Earnings Ratio (9.1x) compared to the peer average (27.1x).


Price to Earnings Ratio vs Industry

How does XCI's PE Ratio compare vs other companies in the European Telecom Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
XCI 9.1xIndustry Avg. 18.2xNo. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: XCI is good value based on its Price-To-Earnings Ratio (9.1x) compared to the European Telecom industry average (18.2x).


Price to Earnings Ratio vs Fair Ratio

What is XCI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

XCI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.1x
Fair PE Ratio24.2x

Price-To-Earnings vs Fair Ratio: XCI is good value based on its Price-To-Earnings Ratio (9.1x) compared to the estimated Fair Price-To-Earnings Ratio (24.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst XCI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
€1.00
0%
23.3%€1.59€0.73n/a13
Nov ’25€0.78
€0.99
+27.0%
23.4%€1.57€0.73n/a13
Oct ’25€0.76
€0.97
+28.5%
23.8%€1.55€0.71n/a13
Sep ’25€0.79
€0.96
+21.7%
23.8%€1.54€0.70n/a13
Aug ’25€0.78
€0.95
+21.3%
23.2%€1.56€0.65n/a13
Jul ’25€0.85
€0.94
+10.4%
22.8%€1.57€0.65n/a14
Jun ’25€0.74
€0.92
+23.7%
23.3%€1.56€0.65n/a14
May ’25€0.72
€0.94
+30.1%
22.9%€1.56€0.66n/a14
Apr ’25€0.66
€0.92
+40.6%
23.7%€1.55€0.60n/a14
Mar ’25€0.68
€0.89
+31.0%
25.4%€1.55€0.60n/a15
Feb ’25€0.64
€0.90
+41.6%
24.3%€1.55€0.60n/a17
Jan ’25€0.56
€0.90
+61.4%
24.8%€1.57€0.64n/a17
Dec ’24€0.59
€0.90
+52.6%
24.6%€1.57€0.64n/a17
Nov ’24€0.59
€0.91
+54.1%
24.2%€1.59€0.65€0.7818
Oct ’24€0.68
€0.91
+34.3%
22.2%€1.58€0.69€0.7619
Sep ’24€0.64
€0.90
+40.4%
21.0%€1.53€0.68€0.7920
Aug ’24€0.65
€0.89
+36.4%
20.9%€1.53€0.68€0.7820
Jul ’24€0.61
€0.89
+46.1%
20.9%€1.55€0.69€0.8520
Jun ’24€0.70
€0.91
+30.5%
19.7%€1.53€0.71€0.7420
May ’24€0.68
€0.91
+33.3%
19.8%€1.52€0.71€0.7220
Apr ’24€0.66
€0.92
+39.3%
16.6%€1.31€0.67€0.6620
Mar ’24€0.71
€0.78
+10.3%
24.2%€1.31€0.57€0.6820
Feb ’24€0.64
€0.77
+21.4%
24.8%€1.31€0.58€0.6420
Jan ’24€0.57
€0.74
+30.4%
30.6%€1.34€0.46€0.5620
Dec ’23€0.53
€0.73
+36.2%
33.2%€1.36€0.45€0.5920
Nov ’23€0.42
€0.74
+75.9%
33.3%€1.43€0.46€0.5921

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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