SZSC:762

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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 Analysis

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

Stable Share Price: 762 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

14.1%

762

10.6%

HK Telecom

7.2%

HK Market


1 Year Return

-42.6%

762

-33.0%

HK Telecom

-0.5%

HK Market

Return vs Industry: 762 underperformed the Hong Kong Telecom industry which returned -30.4% 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 Day14.1%10.6%7.2%
30 Day3.5%-1.0%6.6%
90 Day-7.4%-8.8%13.2%
1 Year-40.5%-42.6%-30.7%-33.0%3.6%-0.5%
3 Year-53.1%-55.9%-36.0%-41.7%9.5%-2.2%
5 Yearn/a-40.0%-47.8%9.6%-8.6%

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

No news available

Valuation

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

12.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 762 (HK$4.78) is trading above our estimate of fair value (HK$3.76)

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 (12.2x) compared to the Telecom industry average (12.6x).

PE vs Market: 762 is poor value based on its PE Ratio (12.2x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: 762 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 762 is good value based on its PB Ratio (0.4x) compared to the HK Telecom industry average (1.2x).


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?

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 762's forecast earnings growth (16.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 762's earnings (16.4% per year) are forecast to grow slower than the Hong Kong market (17.6% per year).

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

Revenue vs Market: 762's revenue (4.2% per year) is forecast to grow slower than the Hong Kong market (10.8% per year).

High Growth Revenue: 762's revenue (4.2% 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 (5.3%).


Next Steps

  • Explore growth companies in the Telecom industry.

Past Performance

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

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 762 has high quality earnings.

Growing Profit Margin: 762's current net profit margins (3.7%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: 762's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: 762's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 762 had negative earnings growth (-0.5%) over the past year, making it difficult to compare to the Telecom industry average (-5.1%).


Return on Equity

High ROE: 762's Return on Equity (3.4%) is considered low.


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¥83.6B) do not cover its short term liabilities (CN¥205.2B).

Long Term Liabilities: 762's short term assets (CN¥83.6B) exceed its long term liabilities (CN¥36.6B).


Debt to Equity History and Analysis

Debt Level: 762's debt to equity ratio (7.8%) is considered satisfactory.

Reducing Debt: 762's debt to equity ratio has reduced from 60.6% to 7.8% over the past 5 years.

Debt Coverage: 762's debt is well covered by operating cash flow (375.4%).

Interest Coverage: 762's interest payments on its debt are well covered by EBIT (33.7x coverage).


Balance Sheet


Next Steps

Dividend

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

3.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 762's dividend (3.42%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 762's dividend (3.42%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.54%).


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.8%), 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 (45% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Xiaochu Wang (62yo)

4.83yrs

Tenure

CN¥839,000

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 ($USD119.58K) is below average for companies of similar size in the Hong Kong market ($USD816.97K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xiaochu Wang
Chairman & CEO4.83yrsCN¥839.00kno data
Kebing Zhu
CFO & Executive Director1.92yrsCN¥608.00kno data
Fushen Li
Executive Director9.33yrsCN¥773.00kno data
Qiuhong Li
Assistant President11.42yrsCN¥641.00kno data
Yanzhou Mai
Senior Vice President2.42yrsno datano data
Baojun Liang
Senior Vice President2.42yrsno datano data
Yunjun Fan
Senior VP & Executive Director0.42yrno datano data
Biao He
Senior Vice President0.083yrno datano data
Shun Loy Yung
Company Secretary4.67yrsno datano data

2.4yrs

Average Tenure

51.5yo

Average Age

Experienced Management: 762's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xiaochu Wang
Chairman & CEO4.83yrsCN¥839.00kno data
Kebing Zhu
CFO & Executive Director1.92yrsCN¥608.00kno data
Fushen Li
Executive Director9.33yrsCN¥773.00kno data
Yunjun Fan
Senior VP & Executive Director0.42yrno datano data
Wai Ming Wong
Independent Non-Executive Director14.5yrsCN¥431.00kno data
Shui Ming Chung
Independent Non-Executive Director11.75yrsCN¥440.00k0.000020% CN¥29.3k
Wing Lam Cheung
Independent Non-Executive Director16.17yrsCN¥422.00kno data
Fan Chiu Fun Law
Independent Non-Executive Director7.67yrsCN¥405.00kno data

8.5yrs

Average Tenure

62yo

Average Age

Experienced Board: 762's board of directors are considered experienced (8.5 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Unicom (Hong Kong) Limited
  • Ticker: 762
  • Exchange: SZSC
  • Founded: 2000
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: HK$146.259b
  • 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)SPONSORED ADRUSUSDJun 2000
XCIADB (Deutsche Boerse AG)SPONSORED ADRDEEURJun 2000
K3IDSGX (Singapore Exchange)SPONSORED ADRSGUSDJun 2000
CHU NBMV (Bolsa Mexicana de Valores)SPONSORED ADRMXMXNJun 2000
0A2FLSE (London Stock Exchange)SPONSORED ADRGBUSDJun 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 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, planning, and technical consulting services; and consultancy, survey, design, and contract services relating to information and construction projects. Further, it provides customer, project design consultation and management, property management, e-payment, venture capital investment, communications technology development and promotion, auto informatisation, financial, data processing, and tourism and information services; advertising design, production, agency, and publication services; technology development, transfer, and consulting services; and technology promotion service of intelligent transportation system’s products. Additionally, the company offers technology development and consultation, and other services; technology research and development, consultation, and services of TV video and mobile video; internet of things technology, and online data processing and transaction services; and big data, and cloud computation and infrastructure services. It also provides online video and reading materials; network music; financing leasing services; and data analysis and application services, as well as sells handsets and telecommunication equipment. As of December 31, 2019, it had approximately 254 million 4G subscribers, 83 million fixed-line broadband subscribers, and 54 million fixed-line local access subscribers. The company was incorporated in 2000 and is based in Central, Hong Kong. China Unicom (Hong Kong) Limited is a subsidiary of China Unicom (BVI) Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 15:19
End of Day Share Price2020/07/07 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.