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China Unicom (Hong Kong)

SEHK:762
Snowflake Description

Excellent balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
762
SEHK
HK$315B
Market Cap
  1. Home
  2. HK
  3. Telecom
Company description

China Unicom Hong Kong Limited, an integrated telecommunications operator, provides telecommunications services and telecommunications products worldwide. The last earnings update was 6 days ago. More info.


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762 Share Price and Events
7 Day Returns
8.8%
SEHK:762
2.9%
HK Telecom
2.7%
HK Market
1 Year Returns
8.1%
SEHK:762
18.2%
HK Telecom
-9.6%
HK Market
762 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Unicom (Hong Kong) (762) 8.8% 15.2% 23.1% 8.1% 6.5% 8.8%
HK Telecom 2.9% 3.7% 18.4% 18.2% 9.6% 18.2%
HK Market 2.7% 5.6% 13.2% -9.6% 29.1% 20.9%
1 Year Return vs Industry and Market
  • 762 underperformed the Telecom industry which returned 18.2% over the past year.
  • 762 outperformed the Market in Hong Kong which returned -9.6% over the past year.
Price Volatility
762
Industry
5yr Volatility vs Market

762 Value

 Is China Unicom (Hong Kong) undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of China Unicom (Hong Kong) to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for China Unicom (Hong Kong).

SEHK:762 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 24 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.3%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:762
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.36
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.356 (1 + (1- 25%) (13.62%))
0.593
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.8 * 6.65%)
7.32%

Discounted Cash Flow Calculation for SEHK:762 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for China Unicom (Hong Kong) is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:762 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 7.32%)
2019 35,776.13 Analyst x10 33,335.01
2020 25,024.18 Analyst x11 21,725.72
2021 18,440.21 Analyst x4 14,917.21
2022 11,594.60 Analyst x2 8,739.46
2023 9,096.00 Analyst x1 6,388.32
2024 7,611.83 Est @ -16.32% 4,981.18
2025 6,788.17 Est @ -10.82% 4,139.07
2026 6,314.79 Est @ -6.97% 3,587.70
2027 6,044.47 Est @ -4.28% 3,199.80
2028 5,899.67 Est @ -2.4% 2,910.05
Present value of next 10 years cash flows CN¥103,923.51
SEHK:762 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥5,899.67 × (1 + 2%) ÷ (7.32% – 2%)
CN¥113,117.35
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥113,117.35 ÷ (1 + 7.32%)10
CN¥55,795.76
SEHK:762 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥103,923.51 + CN¥55,795.76
CN¥159,719.27
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥159,719.27 / 30,598.12
CN¥5.22
SEHK:762 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:762)
1.169
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥5.22 x 1.169
HK$6.1
Value per share (HKD) From above. HK$6.10
Current discount Discount to share price of HK$10.56
= -1 x (HK$10.56 - HK$6.10) / HK$6.10
-73%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of China Unicom (Hong Kong) is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China Unicom (Hong Kong)'s earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Unicom (Hong Kong)'s earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:762 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.33
SEHK:762 Share Price ** SEHK (2019-03-19) in HKD HK$10.56
SEHK:762 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.855 CN¥9.03
Hong Kong Telecom Industry PE Ratio Median Figure of 11 Publicly-Listed Telecom Companies 15.64x
Hong Kong Market PE Ratio Median Figure of 1,494 Publicly-Listed Companies 10.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China Unicom (Hong Kong).

SEHK:762 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:762 Share Price ÷ EPS (both in CNY)

= 9.03 ÷ 0.33

27.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Unicom (Hong Kong) is overvalued based on earnings compared to the HK Telecom industry average.
  • China Unicom (Hong Kong) is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does China Unicom (Hong Kong)'s expected growth come at a high price?
Raw Data
SEHK:762 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts
21.6%per year
Hong Kong Telecom Industry PEG Ratio Median Figure of 7 Publicly-Listed Telecom Companies 1.69x
Hong Kong Market PEG Ratio Median Figure of 468 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:762 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.1x ÷ 21.6%

1.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Unicom (Hong Kong) is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on China Unicom (Hong Kong)'s assets?
Raw Data
SEHK:762 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥10.26
SEHK:762 Share Price * SEHK (2019-03-19) in HKD HK$10.56
SEHK:762 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.855 CN¥9.03
Hong Kong Telecom Industry PB Ratio Median Figure of 11 Publicly-Listed Telecom Companies 1.26x
Hong Kong Market PB Ratio Median Figure of 2,137 Publicly-Listed Companies 0.99x
SEHK:762 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:762 Share Price ÷ Book Value per Share (both in CNY)

= 9.03 ÷ 10.26

0.88x

* Primary Listing of China Unicom (Hong Kong).

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Unicom (Hong Kong) is good value based on assets compared to the HK Telecom industry average.
X
Value checks
We assess China Unicom (Hong Kong)'s value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. China Unicom (Hong Kong) has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

762 Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Unicom (Hong Kong) expected to grow at an attractive rate?
  • China Unicom (Hong Kong)'s earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • China Unicom (Hong Kong)'s earnings growth is expected to exceed the Hong Kong market average.
  • China Unicom (Hong Kong)'s revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:762 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:762 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts 21.6%
SEHK:762 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 24 Analysts 5.4%
Hong Kong Telecom Industry Earnings Growth Rate Market Cap Weighted Average 19.1%
Hong Kong Telecom Industry Revenue Growth Rate Market Cap Weighted Average 6.2%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 12%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:762 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:762 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 411,271 120,894 44,685 1
2022-12-31 366,412 118,090 29,192 2
2021-12-31 343,185 106,747 23,808 10
2020-12-31 319,903 101,784 18,578 24
2019-12-31 303,468 92,041 13,594 23
SEHK:762 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 290,877 92,387 10,197
2018-09-30 288,763 6,554
2018-06-30 285,774 89,295 5,325
2018-03-31 280,759 3,971
2017-12-31 274,829 85,054 1,828
2017-09-30 272,836 3,091
2017-06-30 272,102 79,327 1,611
2017-03-31 272,862 1,007
2016-12-31 274,197 74,593 625
2016-09-30 272,275 3,969
2016-06-30 272,619 87,951 5,001
2016-03-31 273,086 7,878

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China Unicom (Hong Kong)'s earnings are expected to grow significantly at over 20% yearly.
  • China Unicom (Hong Kong)'s revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:762 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below

All data from China Unicom (Hong Kong) Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:762 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.46 1.46 1.46 1.00
2022-12-31 0.95 1.13 0.78 2.00
2021-12-31 0.82 1.23 0.51 11.00
2020-12-31 0.62 0.80 0.48 24.00
2019-12-31 0.46 0.58 0.39 23.00
SEHK:762 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.33
2018-09-30
2018-06-30 0.19
2018-03-31
2017-12-31 0.07
2017-09-30
2017-06-30 0.07
2017-03-31
2016-12-31 0.03
2016-09-30
2016-06-30 0.21
2016-03-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • China Unicom (Hong Kong) is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess China Unicom (Hong Kong)'s future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China Unicom (Hong Kong) has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

762 Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare China Unicom (Hong Kong)'s growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • China Unicom (Hong Kong)'s year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • China Unicom (Hong Kong)'s 1-year earnings growth exceeds its 5-year average (457.8% vs -25.4%)
  • China Unicom (Hong Kong)'s earnings growth has exceeded the HK Telecom industry average in the past year (457.8% vs 8.5%).
Earnings and Revenue History
China Unicom (Hong Kong)'s revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from China Unicom (Hong Kong) Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:762 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 290,877.00 10,197.00
2018-09-30 288,763.00 6,554.00 14,618.00
2018-06-30 285,774.00 5,325.00 15,155.00
2018-03-31 280,759.00 3,971.00 14,618.00
2017-12-31 274,829.00 1,828.00 14,618.00
2017-09-30 272,836.00 3,091.00 9,779.00
2017-06-30 272,102.00 1,611.00 9,500.00
2017-03-31 272,862.00 1,007.00 9,779.00
2016-12-31 274,197.00 625.00 12,967.00
2016-09-30 272,275.00 3,969.00 11,867.00
2016-06-30 272,619.00 5,001.00 10,598.00
2016-03-31 273,086.00 7,878.00 11,867.00
2015-12-31 277,049.00 10,562.00 11,642.00
2015-09-30 281,255.00 9,673.00 10,274.00
2015-06-30 279,797.00 12,356.00 11,230.00
2015-03-31 282,513.00 11,917.00 10,274.00
2014-12-31 284,681.00 12,055.00 10,274.00
2014-09-30 290,207.00 12,597.00 8,625.00
2014-06-30 300,300.00 11,780.00 9,362.00
2014-03-31 300,909.00 11,811.00 13,986.00
2013-12-31 295,038.00 10,408.00 8,625.00
2013-09-30 283,904.00 10,017.00 14,965.00
2013-06-30 271,543.00 8,983.00 11,822.00
2013-03-31 258,333.00 7,988.00 14,965.00
2012-12-31 248,926.00 7,096.00 14,965.00
2012-09-30 238,426.00 5,417.00 13,249.00
2012-06-30 229,439.00 5,040.00 14,169.00
2012-03-31 221,328.00 5,089.00 13,249.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • China Unicom (Hong Kong) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China Unicom (Hong Kong) used its assets less efficiently than the HK Telecom industry average last year based on Return on Assets.
  • China Unicom (Hong Kong)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess China Unicom (Hong Kong)'s performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China Unicom (Hong Kong) has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

762 Health

 How is China Unicom (Hong Kong)'s financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up China Unicom (Hong Kong)'s finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • China Unicom (Hong Kong)'s short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • China Unicom (Hong Kong)'s cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of China Unicom (Hong Kong)'s finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from China Unicom (Hong Kong) Company Filings, last reported 2 months ago.

SEHK:762 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 314,286.00 36,692.00 34,550.00
2018-09-30 309,430.00 50,236.00 43,835.00
2018-06-30 309,430.00 50,236.00 43,835.00
2018-03-31 304,347.00 72,019.00 37,699.00
2017-12-31 304,347.00 72,019.00 37,699.00
2017-09-30 230,413.00 176,154.00 37,636.00
2017-06-30 230,413.00 176,154.00 37,636.00
2017-03-31 227,682.00 177,651.00 25,665.00
2016-12-31 227,682.00 177,651.00 25,665.00
2016-09-30 227,976.00 153,933.00 23,385.00
2016-06-30 227,976.00 153,933.00 23,385.00
2016-03-31 231,216.00 148,942.00 23,717.00
2015-12-31 231,216.00 148,942.00 23,717.00
2015-09-30 230,402.00 143,112.00 26,414.00
2015-06-30 229,705.00 138,079.00 18,321.00
2015-03-31 230,668.00 140,099.00 25,059.00
2014-12-31 227,541.00 138,677.00 27,195.00
2014-09-30 226,183.00 128,858.00 18,802.00
2014-06-30 222,357.00 136,714.00 22,345.00
2014-03-31 222,104.00 141,835.00 22,517.00
2013-12-31 218,899.00 144,614.00 23,995.00
2013-09-30 216,495.00 134,416.00 19,021.00
2013-06-30 212,102.00 133,794.00 16,219.00
2013-03-31 211,372.00 139,673.00 14,255.00
2012-12-31 209,505.00 142,120.00 20,975.00
2012-09-30 207,863.00 113,575.00 12,222.00
2012-06-30 205,680.00 112,585.00 21,792.00
2012-03-31 206,622.00 107,501.00 18,128.00
  • China Unicom (Hong Kong)'s level of debt (11.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (66% vs 11.7% today).
  • Debt is well covered by operating cash flow (251.8%, greater than 20% of total debt).
  • China Unicom (Hong Kong) earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess China Unicom (Hong Kong)'s financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. China Unicom (Hong Kong) has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

762 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.48%
Current annual income from China Unicom (Hong Kong) dividends. Estimated to be 2.68% next year.
If you bought HK$2,000 of China Unicom (Hong Kong) shares you are expected to receive HK$30 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • China Unicom (Hong Kong)'s pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (1.96%).
  • China Unicom (Hong Kong)'s dividend is below the markets top 25% of dividend payers in Hong Kong (5.27%).
Upcoming dividend payment

Purchase China Unicom (Hong Kong) on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:762 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
Hong Kong Telecom Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 1.7%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 922 Stocks 3.4%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.1%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:762 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.50 1.00
2022-12-31 0.33 2.00
2021-12-31 0.30 10.00
2020-12-31 0.24 22.00
2019-12-31 0.19 16.00
SEHK:762 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-03-13 0.134 1.575
2018-05-11 0.052 0.652
2017-10-27 0.000 0.000
2017-09-28 0.000 0.000
2017-08-21 0.000 0.000
2017-04-21 0.000 0.000
2017-03-31 0.000 0.000
2017-03-15 0.000 0.000
2016-03-22 0.170 2.193
2015-06-15 0.203 2.584
2015-03-17 0.200 1.872
2015-03-03 0.200 2.070
2014-02-27 0.160 1.727
2013-03-21 0.120 1.358
2012-03-23 0.100 1.034
2011-03-29 0.080 0.636
2010-03-25 0.160 1.712
2009-03-31 0.200 2.276
2009-03-20 0.200 2.729

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of China Unicom (Hong Kong)'s earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess China Unicom (Hong Kong)'s dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can China Unicom (Hong Kong) afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China Unicom (Hong Kong) has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

762 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Xiaochu Wang
COMPENSATION CN¥707,000
AGE 60
TENURE AS CEO 3.5 years
CEO Bio

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 1, 2015. Mr. Wang served as Chief Executive Officer of China Telecom Corp. Ltd. from October 29, 2004 to August 24, 2015 and served as its President since November 4, 2004 and General Manager. He has more than 20 years of international marketing and strategy development experience. Mr. Wang served as Deputy Director General and Director General of the Hangzhou Telecommunications Bureau in Zhejiang province and Director General of the Tianjin Posts and Telecommunications Administration. He has been General Manager of Hangzhou Telecommunications Bureau in Zhejiang Province and General Manager of Tianjin Posts and Telecommunications Administration. He has also been Chairman and CEO of China Mobile (Hong Kong) Limited and Vice-Chair of China Mobile Communications Corporation. He served as the Chief Executive Officer, President and Executive Chairman of China Telecommunications Corporation until August 24, 2015. He served as the Chief Executive Officer at China Mobile Limited. He served as the Chief Executive Officer at China Mobile Communications Corporation until November 5, 2004 and served as its Vice President. He served as an industry analyst. Mr. Wang joined The Yankee Group Research, Inc., where he served as Vice President of Asia-Pacific Research and Enabling Technology since November 10, 2006. He led a team of analysts that investigated market and service opportunities and technology connectivity trends in the Asia-Pacific region. He served as Senior Sales System Engineer in the Asia-Pacific division of Comverse and Principal Software Engineer in R & D based in Wakefield. He served as Research Director of Ovum Ltd. (Alternate name: Ovum plc). He has also provided go-to-market strategy, partnership strategy and due diligence service in the Chinese telecom market. While at Yankee Group, his research focus included market and technology trends and their impact on the business models for both operators and vendors. He has been Chairman of China United Network Communications Group Co., Ltd. since November 1, 2016 and previously, served as its Chairman since August 24, 2015. He has been Party Secretary at China United Network Communications Group Co.,Ltd since January, 2019. Mr. Wang has been the Chairman of China Telecom - HK since November 4, 2004. He has been the Honorary Chairman at China Communications Services Corporation Limited since April 8, 2008 and served as its Chairman until April 08, 2008. He served as the Chairman of China Mobile Limited. He served as Chairman of China Telecom Corp. Ltd. from December 20, 2004 to August 24, 2015. He served as the Chairman of China Mobile Communications Corporation until November 5, 2004. He has been a Director of China Telecom - HK since November 4, 2004. He has been Director of China United Network Communications Limited since September 18, 2015. Mr. Wang also serves as the Chairman of Unicom Group. He has been a Director of Telefónica, S.A. Telefónica Since Septemebr 30, 2015. He served as a Director at China Communications Services Corporation Limited until April 8, 2008 and China Mobile Limited since March 1999. A Senior Professor of Engineering, he graduated in Telecommunications Engineering in 1989 from the Institute of Posts and Telecommunications in Beijing and received a doctorate degree in Business Administration from the Hong Kong Polytechnic University in 2005.

CEO Compensation
  • Xiaochu's compensation has increased by more than 20% in the past year.
  • Xiaochu's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the China Unicom (Hong Kong) management team in years:

1.1
Average Tenure
54
Average Age
  • The average tenure for the China Unicom (Hong Kong) management team is less than 2 years, this suggests a new team.
Management Team

Xiaochu Wang

TITLE
Chairman & CEO
COMPENSATION
CN¥707K
AGE
60
TENURE
3.5 yrs

Fushen Li

TITLE
Executive Director
COMPENSATION
CN¥647K
AGE
56

Guanglu Shao

TITLE
Senior VP & Executive Director
COMPENSATION
CN¥506K
AGE
54
TENURE
7.9 yrs

Guohua Li

TITLE
President & Executive Director
AGE
58
TENURE
0.6 yrs

Kebing Zhu

TITLE
CFO & Executive Director
AGE
44
TENURE
0.6 yrs

Qiuhong Li

TITLE
Assistant President
COMPENSATION
CN¥641K
TENURE
10.1 yrs

Yanzhou Buy

TITLE
Senior Vice President
AGE
50
TENURE
1.1 yrs

Baojun Liang

TITLE
Senior Vice President
AGE
49
TENURE
1.1 yrs

Yunjun Fan

TITLE
Senior Vice President
AGE
45
TENURE
0.2 yrs

Jacky Yung

TITLE
Company Secretary
AGE
55
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the China Unicom (Hong Kong) board of directors in years:

7.2
Average Tenure
60
Average Age
  • The tenure for the China Unicom (Hong Kong) board of directors is about average.
Board of Directors

Xiaochu Wang

TITLE
Chairman & CEO
COMPENSATION
CN¥707K
AGE
60
TENURE
3.5 yrs

Fushen Li

TITLE
Executive Director
COMPENSATION
CN¥647K
AGE
56
TENURE
8 yrs

Guanglu Shao

TITLE
Senior VP & Executive Director
COMPENSATION
CN¥506K
AGE
54
TENURE
2 yrs

Guohua Li

TITLE
President & Executive Director
AGE
58
TENURE
0.6 yrs

Kebing Zhu

TITLE
CFO & Executive Director
AGE
44
TENURE
0.6 yrs

Linus Cheung

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥355K
AGE
70
TENURE
14.8 yrs

Wai Wong

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥363K
AGE
60
TENURE
13.2 yrs

Timpson Chung

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥372K
AGE
67
TENURE
10.4 yrs

César Alierta Izuel

TITLE
Non-Executive Director
COMPENSATION
CN¥260K
AGE
73
TENURE
10.4 yrs

Fanny Law

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥337K
AGE
65
TENURE
6.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess China Unicom (Hong Kong)'s management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. China Unicom (Hong Kong) has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

762 News

Simply Wall St News

What You Must Know About China Unicom (Hong Kong) Limited's (HKG:762) Major Investors

In this analysis, my focus will be on developing a perspective on China Unicom (Hong Kong) Limited’s (HKG:762) latest ownership structure, a less discussed, but important factor. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … See our latest analysis for China Unicom (Hong Kong)

Simply Wall St -

Should China Unicom (Hong Kong) Limited's (HKG:762) Recent Earnings Worry You?

After looking at China Unicom (Hong Kong) Limited's (HKG:762) latest earnings announcement (31 March 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … View out our latest analysis for China Unicom (Hong Kong). … 762's trailing twelve-month earnings (from 31 March 2018) of CN¥3.97b has

Simply Wall St -

Is There An Opportunity With China Unicom (Hong Kong) Limited's (HKG:762) 22.53% Undervaluation?

by taking the expected future cash flows and discounting them to their present value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Does China Unicom (Hong Kong) Limited's (HKG:762) PE Ratio Warrant A Sell?

and want to begin learning the link between China Unicom (Hong Kong) Limited (HKG:762)’s fundamentals and stock market performance. … China Unicom (Hong Kong) Limited (HKG:762) trades with a trailing P/E of 62.5x, which is higher than the industry average of 12.8x. … While 762 might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions

Simply Wall St -

China Unicom (Hong Kong) Limited (HKG:762): What Is Driving Margins?

To help investors get a top level understanding, this article will interpret China Unicom (Hong Kong)'s margin performance to help recognise the underlying make-up of revenue and expenses that is responsible for driving future earnings expectations and what it means for 762's returns relative to its competitors. … Margin Calculation for 762 Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 3.97 Billion ÷ 280.76 Billion = 1.41% There has been a contraction in China Unicom (Hong Kong)'s margin over the past five years, as a result of postive average revenue growth of 3.51% and decline in net income of -6.16% on average, which suggests that a smaller percentage of revenue falls to the bottom line despite the fact revenue has increased over the previous 5 years. … For China Unicom (Hong Kong) in particular, future profit margin is expected to expand simultaneously with Telecom industry margins, and at the same time, the industry’s forecasted ROE of 10.63% exceeds that of the expected 3.15% ROE for 762.

Simply Wall St -

What You Must Know About China Unicom (Hong Kong) Limited's (HKG:762) Return on Equity

China Unicom (Hong Kong) Limited (SEHK:762) generated a below-average return on equity of 0.61% in the past 12 months, while its industry returned 10.63%. … See our latest analysis for China Unicom (Hong Kong) Breaking down Return on Equity Return on Equity (ROE) is a measure of China Unicom (Hong Kong)’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of China Unicom (Hong Kong)’s equity capital deployed.

Simply Wall St -

Does China Unicom (Hong Kong) Limited's (HKG:762) PE Ratio Warrant A Sell?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for 762 Price per share = CN¥7.68 Earnings per share = CN¥0.129 ∴ Price-Earnings Ratio = CN¥7.68 ÷ CN¥0.129 = 59.5x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … 762’s P/E of 59.5x is higher than its industry peers (11.7x), which implies that each dollar of 762’s earnings is being overvalued by investors. … For example, if you are inadvertently comparing riskier firms with 762, then 762’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price.

Simply Wall St -

Calculating The Fair Value Of China Unicom (Hong Kong) Limited (HKG:762)

Today, I will calculate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. … 5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF (CN¥, Millions) CN¥35,064.09 CN¥27,095.03 CN¥26,478.02 CN¥22,747.00 CN¥25,249.00 Source Analyst x13 Analyst x8 Analyst x2 Analyst x1 Analyst x1 Present Value Discounted @ 9.01% CN¥32,166.06 CN¥22,801.34 CN¥20,440.50 CN¥16,108.88 CN¥16,402.91 Present Value of 5-year Cash Flow (PVCF)= CN¥107,920 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = CN¥25,249 × (1 + 1.9%) ÷ (9% – 1.9%) = CN¥360,802 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = CN¥360,802 / ( 1 + 9%)5 = CN¥234,394 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is HK$342,313.

Simply Wall St -

Should You Buy China Unicom (Hong Kong) Limited (HKG:762) At $10.92?

It’s trading around 17% below my intrinsic value, which means if you buy China Unicom (Hong Kong) today, you’d be paying a fair price for it. … This is because China Unicom (Hong Kong)’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. … China Unicom (Hong Kong)’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.

Simply Wall St -

762 Company Info

Description

China Unicom Hong Kong Limited, an integrated telecommunications operator, provides telecommunications services and telecommunications products worldwide. It offers mobile voice services that enable its subscribers to make and receive phone calls comprising local calls, domestic and international long-distance calls, intra-provincial roaming, inter-provincial roaming, and international roaming; and mobile data, mobile reading, mobile music, WO app store, SMS, personalized ring-back tone, and other wireless information services. The company also provides fixed-line broadband access, data communications, fixed-line voice, fixed-line voice value-added, and fixed-line other services. In addition, it offers bundled services that integrate mobiles and fixed-line services in a service package; and Internet data center, cloud computing, big data, Internet-of-things, information technology, and other services. Additionally, it provides telecommunications network construction, planning, and technical consulting services; consultancy, survey, design, and contract services for information and construction projects in the telecommunications industry; Internet information, e-payment, telecommunications networks leasing, magazine publishing, project consultation and management, and property management services; advertising design, production, agency, and publication services; and technology development, transfer, and consulting services. The company also offers customer, data processing, and tourism and information services, as well as engages in the financial services, auto informatization, and venture capital investment businesses; and sells mobile handsets, fixed-line terminals, and accessories. As of December 31, 2017, it had 284.16 million mobile billing subscribers and 76,539,000 fixed-line broadband subscribers. The company was incorporated in 2000 and is based in Central, Hong Kong. China Unicom Hong Kong Limited operates as a subsidiary of China Unicom BVI Limited

Details
Name: China Unicom (Hong Kong) Limited
762
Exchange: SEHK
Founded: 2000
HK$315,160,680,753
30,598,124,345
Website: http://www.chinaunicom.com.hk
Address: China Unicom (Hong Kong) Limited
The Center,
75th Floor,
Central,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 762 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 22. Jun 2000
OTCPK CHUF.F Ordinary Shares Pink Sheets LLC US USD 22. Jun 2000
DB XCI Ordinary Shares Deutsche Boerse AG DE EUR 22. Jun 2000
SHSC 762 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 22. Jun 2000
SZSC 762 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 22. Jun 2000
NYSE CHU ADR EACH REP 10 ORD HKD0.10 LVL111 New York Stock Exchange US USD 21. Jun 2000
DB XCIA ADR EACH REP 10 ORD HKD0.10 LVL111 Deutsche Boerse AG DE EUR 21. Jun 2000
BMV CHU N ADR EACH REP 10 ORD HKD0.10 LVL111 Bolsa Mexicana de Valores MX MXN 21. Jun 2000
Number of employees
Current staff
Staff numbers
252,555
China Unicom (Hong Kong) employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 12:34
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/18
Last earnings filing: 2019/03/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.