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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued with excellent balance sheet and pays a dividend.
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
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 has decreased from 7% to 2% over the past year.
Market Performance
7 Day Return
0.2%
762
2.6%
HK Telecom
-1.0%
HK Market
1 Year Return
-5.6%
762
-9.6%
HK Telecom
20.1%
HK Market
Return vs Industry: 762 exceeded the Hong Kong Telecom industry which returned -9.4% over the past year.
Return vs Market: 762 underperformed the Hong Kong Market which returned 20.4% over the past year.
Shareholder returns
| 762 | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.2% | 2.6% | -1.0% |
| 30 Day | -0.9% | -0.7% | -1.0% |
| 90 Day | -4.6% | -5.3% | 1.2% |
| 1 Year | -1.2%-5.6% | -5.5%-9.6% | 24.2%20.1% |
| 3 Year | -52.4%-56.9% | -26.4%-35.4% | 12.6%0.4% |
| 5 Year | -40.4%-46.4% | -15.2%-29.5% | 57.3%30.2% |
Long-Term 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
1 week ago | Simply Wall St
How Much Did China Unicom (Hong Kong)'s(HKG:762) Shareholders Earn From Share Price Movements Over The Last Three Years?1 month ago | Simply Wall St
China Unicom (Hong Kong) (HKG:762) Will Pay A Larger Dividend Than Last Year At CN¥0.201 month ago | Simply Wall St
What Is China Unicom (Hong Kong) Limited's (HKG:762) Share Price Doing?Valuation
Is China Unicom (Hong Kong) 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: 762 (HK$4.2) is trading below our estimate of fair value (HK$23.34)
Significantly Below Fair Value: 762 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 762 is good value based on its PE Ratio (8.1x) compared to the Hong Kong Telecom industry average (10x).
PE vs Market: 762 is good value based on its PE Ratio (8.1x) compared to the Hong Kong market (11.4x).
Price to Earnings Growth Ratio
PEG Ratio: 762 is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: 762 is good value based on its PB Ratio (0.3x) compared to the HK Telecom industry average (1x).
Future Growth
How is China Unicom (Hong Kong) forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
16.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 762's forecast earnings growth (16.6% per year) is above the savings rate (1.5%).
Earnings vs Market: 762's earnings (16.6% per year) are forecast to grow slower than the Hong Kong market (19.5% per year).
High Growth Earnings: 762's earnings are forecast to grow, but not significantly.
Revenue vs Market: 762's revenue (3.9% per year) is forecast to grow slower than the Hong Kong market (12.8% per year).
High Growth Revenue: 762's revenue (3.9% 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 (5.4%).
Past Performance
How has China Unicom (Hong Kong) performed over the past 5 years?
31.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 762 has high quality earnings.
Growing Profit Margin: 762's current net profit margins (4.2%) are higher than last year (3.7%).
Past Earnings Growth Analysis
Earnings Trend: 762's earnings have grown significantly by 31.6% per year over the past 5 years.
Accelerating Growth: 762's earnings growth over the past year (21.7%) is below its 5-year average (31.6% per year).
Earnings vs Industry: 762 earnings growth over the past year (21.7%) exceeded the Telecom industry 2.1%.
Return on Equity
High ROE: 762's Return on Equity (4%) is considered low.
Financial Health
How is China Unicom (Hong Kong)'s financial position?
Financial Position Analysis
Short Term Liabilities: 762's short term assets (CN¥108.6B) do not cover its short term liabilities (CN¥222.0B).
Long Term Liabilities: 762's short term assets (CN¥108.6B) exceed its long term liabilities (CN¥31.1B).
Debt to Equity History and Analysis
Debt Level: 762's debt to equity ratio (5.4%) is considered satisfactory.
Reducing Debt: 762's debt to equity ratio has reduced from 64.2% to 5.4% over the past 5 years.
Debt Coverage: 762's debt is well covered by operating cash flow (597%).
Interest Coverage: 762 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is China Unicom (Hong Kong) current dividend yield, its reliability and sustainability?
4.70%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 762's dividend (4.69%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.88%).
High Dividend: 762's dividend (4.69%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.07%).
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.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (38.1%), 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 (43.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Xiaochu Wang (63 yo)
5.75yrs
Tenure
CN¥1,050,000
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 ($USD162.37K) is below average for companies of similar size in the Hong Kong market ($USD967.08K).
Compensation vs Earnings: Xiaochu's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: 762's management team is considered experienced (3.3 years average tenure).
Board Members
Experienced Board: 762's board of directors are considered experienced (8.6 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 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$128.206b
- 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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/22 16:47 |
| End of Day Share Price | 2021/06/22 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.