China Unicom (Hong Kong) Limited (HKG:762) Half-Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in China Unicom (Hong Kong) Limited (HKG:762) had a good week, as its shares rose 3.7% to close at HK$6.98 following the release of its half-year results. China Unicom (Hong Kong) reported CN¥197b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of CN¥0.45 beat expectations, being 2.3% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on China Unicom (Hong Kong) after the latest results.

See our latest analysis for China Unicom (Hong Kong)

Taking into account the latest results, China Unicom (Hong Kong)'s 14 analysts currently expect revenues in 2024 to be CN¥386.6b, approximately in line with the last 12 months. Statutory per share are forecast to be CN¥0.67, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of CN¥386.8b and earnings per share (EPS) of CN¥0.67 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of HK$8.34, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic China Unicom (Hong Kong) analyst has a price target of HK$13.16 per share, while the most pessimistic values it at HK$6.11. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that China Unicom (Hong Kong)'s revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.9% growth on an annualised basis. This is compared to a historical growth rate of 6.3% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that China Unicom (Hong Kong) is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple China Unicom (Hong Kong) analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for China Unicom (Hong Kong) you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.