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762

China Unicom (Hong Kong) SEHK:762 Stock Report

Last Price

HK$3.68

Market Cap

HK$112.0b

7D

0%

1Y

-13.4%

Updated

28 Jun, 2022

Data

Company Financials +
762 fundamental analysis
Snowflake Score
Valuation6/6
Future Growth1/6
Past Performance3/6
Financial Health5/6
Dividends4/6

762 Stock Overview

China Unicom (Hong Kong) Limited, an investment holding company, provides cellular and fixed-line voice, and related value-added services in the People’s Republic of China.

China Unicom (Hong Kong) Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China Unicom (Hong Kong)
Historical stock prices
Current Share PriceHK$3.68
52 Week HighHK$4.73
52 Week LowHK$3.60
Beta0.91
1 Month Change-1.08%
3 Month Change-5.64%
1 Year Change-13.41%
3 Year Change-57.46%
5 Year Change-67.32%
Change since IPO-78.10%

Recent News & Updates

Shareholder Returns

762HK TelecomHK Market
7D0%-0.1%1.7%
1Y-13.4%-7.4%-21.2%

Return vs Industry: 762 underperformed the Hong Kong Telecom industry which returned -7.4% over the past year.

Return vs Market: 762 exceeded the Hong Kong Market which returned -21.2% over the past year.

Price Volatility

Is 762's price volatile compared to industry and market?
762 volatility
762 Average Weekly Movement1.7%
Telecom Industry Average Movement3.3%
Market Average Movement6.9%
10% most volatile stocks in HK Market13.8%
10% least volatile stocks in HK Market3.4%

Stable Share Price: 762 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 762's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2000243,381Liehong Liuhttps://www.chinaunicom.com.hk

China Unicom (Hong Kong) Limited, an investment holding company, provides cellular and fixed-line voice, and related value-added services in the People’s Republic of China. It also provides broadband and other Internet-related, information communications technology, and business and data communications services. In addition, the company offers communications technology training, technical, and Internet information and value-added telecommunications services; telecommunications network construction, maintenance, and technical services; and consultancy, survey, design, and contract services relating to information and construction projects.

China Unicom (Hong Kong) Fundamentals Summary

How do China Unicom (Hong Kong)'s earnings and revenue compare to its market cap?
762 fundamental statistics
Market CapCN¥95.52b
Earnings (TTM)CN¥15.16b
Revenue (TTM)CN¥334.60b

6.3x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
762 income statement (TTM)
RevenueCN¥334.60b
Cost of RevenueCN¥150.60b
Gross ProfitCN¥184.00b
Other ExpensesCN¥168.84b
EarningsCN¥15.16b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.50
Gross Margin54.99%
Net Profit Margin4.53%
Debt/Equity Ratio10.7%

How did 762 perform over the long term?

See historical performance and comparison

Dividends

6.1%

Current Dividend Yield

44%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 762 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 762?

Other financial metrics that can be useful for relative valuation.

762 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA0.7x
PEG Ratio0.4x

Price to Earnings Ratio vs Peers

How does 762's PE Ratio compare to its peers?

762 PE Ratio vs Peers
The above table shows the PE ratio for 762 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.4x
788 China Tower
18.8x18.1%HK$170.7b
6823 HKT Trust and HKT
16.6x3.3%HK$80.8b
728 China Telecom
7.8x14.7%HK$377.3b
8 PCCW
34.2x14.3%HK$32.1b
762 China Unicom (Hong Kong)
6.3x15.7%HK$112.0b

Price-To-Earnings vs Peers: 762 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the peer average (19.4x).


Price to Earnings Ratio vs Industry

How does 762's PE Ratio compare vs other companies in the Asian Telecom Industry?

Price-To-Earnings vs Industry: 762 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the Hong Kong Telecom industry average (12.9x)


Price to Earnings Ratio vs Fair Ratio

What is 762'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.

762 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.3x
Fair PE Ratio14.4x

Price-To-Earnings vs Fair Ratio: 762 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the estimated Fair Price-To-Earnings Ratio (14.4x).


Share Price vs Fair Value

What is the Fair Price of 762 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 762 (HK$3.68) is trading below our estimate of fair value (HK$16.97)

Significantly Below Fair Value: 762 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 762 is good value based on its PEG Ratio (0.4x)


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Future Growth

How is China Unicom (Hong Kong) forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 762's forecast earnings growth (15.7% per year) is above the savings rate (1.5%).

Earnings vs Market: 762's earnings (15.7% per year) are forecast to grow slower than the Hong Kong market (17.1% per year).

High Growth Earnings: 762's earnings are forecast to grow, but not significantly.

Revenue vs Market: 762's revenue (5.1% per year) is forecast to grow slower than the Hong Kong market (10.3% per year).

High Growth Revenue: 762's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 762's Return on Equity is forecast to be low in 3 years time (6%).


Discover growth companies

Past Performance

How has China Unicom (Hong Kong) performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


30.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 762 has high quality earnings.

Growing Profit Margin: 762's current net profit margins (4.5%) are higher than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: 762's earnings have grown significantly by 30.6% per year over the past 5 years.

Accelerating Growth: 762's earnings growth over the past year (15.1%) is below its 5-year average (30.6% per year).

Earnings vs Industry: 762 earnings growth over the past year (15.1%) underperformed the Telecom industry 15.1%.


Return on Equity

High ROE: 762's Return on Equity (4.6%) is considered low.


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Financial Health

How is China Unicom (Hong Kong)'s financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 762's short term assets (CN¥126.2B) do not cover its short term liabilities (CN¥236.2B).

Long Term Liabilities: 762's short term assets (CN¥126.2B) exceed its long term liabilities (CN¥21.5B).


Debt to Equity History and Analysis

Debt Level: 762 has more cash than its total debt.

Reducing Debt: 762's debt to equity ratio has reduced from 77.7% to 10.7% over the past 5 years.

Debt Coverage: 762's debt is well covered by operating cash flow (308.9%).

Interest Coverage: 762 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is China Unicom (Hong Kong) current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


6.12%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 762's dividend (6.12%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.7%).

High Dividend: 762's dividend (6.12%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.78%).


Stability and Growth of Payments

Stable Dividend: 762's dividend payments have been volatile in the past 10 years.

Growing Dividend: 762's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (43.6%), 762's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (15.2%), 762's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

1.3yrs

Average management tenure


CEO

Liehong Liu (52 yo)

0.75

Tenure

CN¥197,000

Compensation

Mr. Liehong Liu is Chairman and Chief Executive Officer of China Unicom (Hong Kong) Limited since September 03, 2021. He served as Head of the Electronics Second Research Institute under the Ministry of In...


CEO Compensation Analysis

Compensation vs Market: Liehong's total compensation ($USD29.44K) is below average for companies of similar size in the Hong Kong market ($USD1.06M).

Compensation vs Earnings: Insufficient data to compare Liehong's compensation with company performance.


Leadership Team

Experienced Management: 762's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: 762's board of directors are considered experienced (5.5 years average tenure).


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 Unicom (Hong Kong) Limited's employee growth, exchange listings and data sources


Key Information

  • Name: China Unicom (Hong Kong) Limited
  • Ticker: 762
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Implied Market Cap: HK$111.989b
  • Shares outstanding: 30.60b
  • Website: https://www.chinaunicom.com.hk

Number of Employees


Location

  • China Unicom (Hong Kong) Limited
  • The Center
  • 75th Floor
  • Central
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.