SEHK:762

Stock Analysis Report

China Unicom (Hong Kong)

Executive Summary

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.

Snowflake

Fundamentals

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has China Unicom (Hong Kong)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.4%

762

-1.2%

HK Telecom

-0.6%

HK Market


1 Year Return

-9.7%

762

6.1%

HK Telecom

0.9%

HK Market

Return vs Industry: 762 underperformed the Hong Kong Telecom industry which returned 6.1% over the past year.

Return vs Market: 762 underperformed the Hong Kong Market which returned 0.9% over the past year.


Shareholder returns

762IndustryMarket
7 Day-3.4%-1.2%-0.6%
30 Day-3.1%-4.0%0.8%
90 Day0.9%-8.3%-5.7%
1 Year-8.0%-9.7%8.6%6.1%4.6%0.9%
3 Year-10.8%-12.9%-5.0%-11.5%15.8%4.2%
5 Year-25.8%-30.5%-19.4%-27.9%17.8%-1.9%

Price Volatility Vs. Market

How volatile is China Unicom (Hong Kong)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Unicom (Hong Kong) undervalued compared to its fair value and its price relative to the market?

19.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 762 (HK$8.01) is trading above our estimate of fair value (HK$4.01)

Significantly Below Fair Value: 762 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 762 is good value based on its PE Ratio (19.7x) compared to the Telecom industry average (19.7x).

PE vs Market: 762 is poor value based on its PE Ratio (19.7x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 762 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 762 is good value based on its PB Ratio (0.7x) compared to the HK Telecom industry average (1.1x).


Next Steps

Future Growth

How is China Unicom (Hong Kong) forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

25.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 762's forecast earnings growth (25.1% per year) is above the savings rate (2%).

Earnings vs Market: 762's earnings (25.1% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

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

Revenue vs Market: 762's revenue (4.9% per year) is forecast to grow slower than the Hong Kong market (9.7% per year).

High Growth Revenue: 762's revenue (4.9% 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 (7.5%).


Next Steps

Past Performance

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

-8.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 762's earnings have declined by -8.3% per year over the past 5 years.

Accelerating Growth: 762's earnings growth over the past year (71.5%) exceeds its 5-year average (-8.3% per year).

Earnings vs Industry: 762 earnings growth over the past year (71.5%) exceeded the Telecom industry 6.3%.


Return on Equity

High ROE: 762's Return on Equity (3.6%) is considered low.


Return on Assets

ROA vs Industry: 762's Return on Assets is below or equal to the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: 762 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: 762's short term assets (CN¥81.3B) do not cover its short term liabilities (CN¥211.2B)

Long Term Liabilities: 762's short term assets (81.3B) exceeds its long term liabilities (37.3B)


Debt to Equity History and Analysis

Debt Level: 762's debt to equity ratio (9.5%) is considered satisfactory

Reducing Debt: 762's debt to equity ratio has reduced from 56.9% to 9.5% over the past 5 years.

Debt Coverage: 762's debt is well covered by operating cash flow (278.4%).

Interest Coverage: 762's interest payments on its debt are well covered by EBIT (80.3x coverage).


Balance Sheet

Inventory Level: 762 has a high level of physical assets or inventory.

Debt Coverage by Assets: 762's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

  • Explore more healthy companies in the Telecom industry.

Dividend

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

1.85%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%2.3%markettop25%6.2%industryaverage2.1%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 762's dividend (1.85%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 762's dividend (1.85%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.22%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.5%), 762's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 762's dividends in 3 years are forecast to be well covered by earnings (37.4% payout ratio).


Next Steps

Management

What is the CEO of China Unicom (Hong Kong)'s salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Xiaochu Wang (61yo)

4.1yrs

Tenure

CN¥801,000

Compensation

Mr. Wang Xiaochu has been the General Manager of China Telecom (Hong Kong) since November 4, 2004. Mr. Wang has been Chief Executive Officer and Chairman of China Unicom (Hong Kong) Limited since September ...


CEO Compensation Analysis

Compensation vs. Market: Xiaochu's total compensation ($USD113.19K) is about average for companies of similar size in the Hong Kong market ($USD807.42K).

Compensation vs Earnings: Xiaochu's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.7yrs

Average Tenure

55yo

Average Age

Experienced Management: 762's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

7.8yrs

Average Tenure

61yo

Average Age

Experienced Board: 762's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellCN¥1,837,08002 May 19
Wing Lam Cheung
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares200,000
Max PriceCN¥9.19

Ownership Breakdown


Management Team

  • Xiaochu Wang (61yo)

    Chairman & CEO

    • Tenure: 4.1yrs
    • Compensation: CN¥801.00k
  • Fushen Li (57yo)

    Executive Director

    • Tenure: 8.6yrs
    • Compensation: CN¥724.00k
  • Jacky Yung (56yo)

    Company Secretary

    • Tenure: 3.9yrs
  • Qiuhong Li

    Assistant President

    • Tenure: 10.7yrs
    • Compensation: CN¥641.00k
  • Kebing Zhu (45yo)

    CFO & Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥289.62k
  • Guanglu Shao (55yo)

    Senior VP & Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥717.00k
  • Yanzhou Buy (51yo)

    Senior Vice President

    • Tenure: 1.7yrs
  • Baojun Liang (50yo)

    Senior Vice President

    • Tenure: 1.7yrs
  • Guohua Li (59yo)

    President & Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥335.73k
  • Yunjun Fan (46yo)

    Senior Vice President

    • Tenure: 0.8yrs

Board Members

  • César Alierta Izuel (74yo)

    Non-Executive Director

    • Tenure: 11yrs
    • Compensation: CN¥254.00k
  • Wai Ming Wong (61yo)

    Independent Non-Executive Director

    • Tenure: 13.8yrs
    • Compensation: CN¥356.00k
  • Xiaochu Wang (61yo)

    Chairman & CEO

    • Tenure: 4.1yrs
    • Compensation: CN¥801.00k
  • Timpson Chung (68yo)

    Independent Non-Executive Director

    • Tenure: 11yrs
    • Compensation: CN¥364.00k
  • Linus Cheung (71yo)

    Independent Non-Executive Director

    • Tenure: 15.4yrs
    • Compensation: CN¥347.00k
  • Fushen Li (57yo)

    Executive Director

    • Tenure: 8.6yrs
    • Compensation: CN¥724.00k
  • Kebing Zhu (45yo)

    CFO & Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥289.62k
  • Guanglu Shao (55yo)

    Senior VP & Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥717.00k
  • Fanny Law (66yo)

    Independent Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: CN¥330.00k
  • Guohua Li (59yo)

    President & Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥335.73k

Company Information

China Unicom (Hong Kong) Limited's company bio, 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
  • Market Cap: HK$245.397b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHUNYSE (New York Stock Exchange)DR EACH REP 10 ORD HKD0.10 LVL111USUSDJun 2000
XCIADB (Deutsche Boerse AG)DR EACH REP 10 ORD HKD0.10 LVL111DEEURJun 2000
K3IDSGX (Singapore Exchange)DR EACH REP 10 ORD HKD0.10 LVL111SGUSDJun 2000
CHU NBMV (Bolsa Mexicana de Valores)DR EACH REP 10 ORD HKD0.10 LVL111MXMXNJun 2000
0A2FLSE (London Stock Exchange)DR EACH REP 10 ORD HKD0.10 LVL111GBUSDJun 2000
CHUF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2000
762SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2000
XCIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2000
762SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2000
762SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2000

Biography

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 o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:35
End of Day Share Price2019/10/23 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.