Financials China Unicom Hong Kong Limited

Equities

762 HK0000049939

Wireless Telecommunications Services

Market Closed - Hong Kong S.E. Other stock markets 04:08:20 2024-04-26 am EDT			5-day change	1st Jan Change
6.12 ^HKD	+1.32%		+2.00%	+24.90%

Apr. 25	Agency bars Chinese telecom carriers from offering US broadband services	RE
Apr. 19	China Unicom Logs Nearly 269 Million 5G Subscribers in March	MT

Valuation

Fiscal Period: December	2018	2019	2020	2021	2022	2023	2024	2025
Capitalization ¹	224,614	200,710	114,601	97,234	130,524	173,342	173,342	-
Enterprise Value (EV) ¹	227,526	183,910	94,164	57,786	97,411	66,708	95,946	72,558
P/E ratio	22.2 x	17.7 x	9.14 x	6.76 x	7.76 x	7.3 x	8.33 x	7.54 x
Yield	1.83%	2.26%	4.38%	6.8%	6.42%	7.56%	7.02%	8.37%
Capitalization / Revenue	0.77 x	0.69 x	0.38 x	0.3 x	0.37 x	0.37 x	0.44 x	0.42 x
EV / Revenue	0.78 x	0.63 x	0.31 x	0.18 x	0.27 x	0.18 x	0.24 x	0.18 x
EV / EBITDA	2.68 x	1.95 x	1 x	0.6 x	0.98 x	0.67 x	0.92 x	0.68 x
EV / FCF	5.66 x	4.91 x	1.83 x	1.39 x	3.7 x	2.34 x	2.81 x	1.75 x
FCF Yield	17.7%	20.4%	54.8%	72.2%	27%	42.8%	35.6%	57%
Price to Book	0.72 x	0.63 x	0.35 x	0.29 x	0.38 x	0.39 x	0.48 x	0.47 x
Nbr of stocks (in thousands)	30,598,124	30,598,124	30,598,124	30,598,124	30,598,124	30,598,124	30,598,124	-
Reference price ²	7.341	6.560	3.745	3.178	4.266	5.665	5.665	5.665
Announcement Date	3/13/19	3/23/20	3/11/21	3/11/22	3/8/23	3/19/24	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2018	2019	2020	2021	2022	2023	2024	2025
Net sales ¹	290,877	290,515	303,838	327,854	354,944	372,597	392,073	409,499
EBITDA ¹	84,910	94,360	94,139	96,320	99,169	99,810	103,732	107,344
EBIT ¹	9,133	14,886	11,123	10,668	12,340	14,960	17,749	20,239
Operating Margin	3.14%	5.12%	3.66%	3.25%	3.48%	4.02%	4.53%	4.94%
Earnings before Tax (EBT) ¹	13,081	14,167	16,027	17,927	20,588	22,945	25,952	28,920
Net income ¹	10,197	11,330	12,493	14,368	16,745	18,726	20,963	23,106
Net margin	3.51%	3.9%	4.11%	4.38%	4.72%	5.03%	5.35%	5.64%
EPS ²	0.3300	0.3700	0.4100	0.4700	0.5500	0.6100	0.6800	0.7515
Free Cash Flow ¹	40,211	37,491	51,570	41,700	26,340	28,520	34,121	41,368
FCF margin	13.82%	12.91%	16.97%	12.72%	7.42%	7.65%	8.7%	10.1%
FCF Conversion (EBITDA)	47.36%	39.73%	54.78%	43.29%	26.56%	28.57%	32.89%	38.54%
FCF Conversion (Net income)	394.34%	330.9%	412.79%	290.23%	157.3%	152.3%	162.77%	179.04%
Dividend per Share ²	0.1340	0.1480	0.1640	0.2160	0.2740	0.3366	0.3976	0.4744
Announcement Date	3/13/19	3/23/20	3/11/21	3/11/22	3/8/23	3/19/24	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2019 S1	2019 S2	2020 S1	2020 S2	2021 Q1	2021 Q2	2021 S1	2021 Q3	2021 Q4	2021 S2	2022 Q1	2022 Q2	2022 S1	2022 Q3	2022 Q4	2022 S2	2023 Q2	2023 S1	2023 Q3	2023 Q4	2023 S2	2024 Q1	2024 S1	2024 S2
Net sales ¹	144,954	145,561	150,397	153,441	82,272	81,902	164,174	80,315	83,365	163,680	89,022	87,239	176,261	87,717	90,966	178,683	94,611	191,833	89,860	92,270	180,764	89,000	197,296	192,327
EBITDA ¹	49,500	44,860	49,452	44,687	23,637	-	49,489	-	20,983	46,831	25,031	26,379	51,410	25,325	22,434	-	27,870	53,600	25,269	22,185	46,210	-	-	-
EBIT ¹	7,719	7,167	8,138	2,983	3,079	-	8,113	-	-	2,555	-	5,608	9,511	-	-704	2,829	-	11,182	4,226	-346.5	3,778	-	13,914	3,171
Operating Margin	5.33%	4.92%	5.41%	1.94%	3.74%	-	4.94%	-	-	1.56%	-	6.43%	5.4%	-	-0.77%	1.58%	-	5.83%	4.7%	-0.38%	2.09%	-	7.05%	1.65%
Earnings before Tax (EBT) ¹	8,740	5,427	9,736	6,291	-	-	11,289	-	-	6,638	-	7,667	-	-	1,287	-	8,774	-	6,051	1,734	-	-	-	-
Net income ¹	6,877	4,453	7,569	4,924	3,843	5,324	9,167	3,756	1,445	5,201	4,634	6,323	10,957	4,710	1,078	-	7,236	12,391	4,855	1,471	6,335	5,600	-	-
Net margin	4.74%	3.06%	5.03%	3.21%	4.67%	6.5%	5.58%	4.68%	1.73%	3.18%	5.21%	7.25%	6.22%	5.37%	1.19%	-	7.65%	6.46%	5.4%	1.59%	3.5%	6.29%	-	-
EPS	0.2200	0.1500	0.2500	0.1600	-	-	0.3000	-	-	0.1700	-	-	-	-	-	0.1900	-	0.4000	-	-	0.2100	-	0.4800	0.2000
Dividend per Share	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Announcement Date	8/14/19	3/23/20	8/12/20	3/11/21	4/21/21	8/19/21	8/19/21	10/21/21	3/11/22	3/11/22	4/21/22	8/8/22	8/8/22	10/28/22	3/8/23	3/8/23	8/9/23	8/9/23	10/24/23	-	3/19/24	-	-	-

¹CNY in Million

Estimates

Balance Sheet Analysis

Fiscal Period: December	2018	2019	2020	2021	2022	2023	2024	2025
Net Debt ¹	2,912	-	-	-	-	-	-	-
Net Cash position ¹	-	16,800	20,437	39,448	33,113	69,565	77,395	100,784
Leverage (Debt/EBITDA)	0.0343 x	-	-	-	-	-	-	-
Free Cash Flow ¹	40,211	37,491	51,570	41,700	26,340	28,520	34,121	41,368
ROE (net income / shareholders' equity)	3.3%	3.57%	3.86%	4.36%	4.97%	5.4%	5.88%	6.31%
ROA (Net income/ Total Assets)	1.83%	2.05%	2.19%	2.45%	2.71%	2.87%	2.81%	3.17%
Assets ¹	556,152	551,411	571,558	585,851	616,870	651,861	746,217	728,298
Book Value Per Share ²	10.30	10.50	10.70	10.90	11.20	11.50	11.80	12.10
Cash Flow per Share ²	3.020	3.060	3.450	3.620	3.290	3.350	3.140	3.660
Capex ¹	52,176	56,187	53,981	68,960	74,200	73,870	66,004	67,936
Capex / Sales	17.94%	19.34%	17.77%	21.03%	20.9%	19.83%	16.83%	16.59%
Announcement Date	3/13/19	3/23/20	3/11/21	3/11/22	3/8/23	3/19/24	-	-

¹CNY in Million²CNY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for China Unicom Hong Kong Limited

Trading Rating

Investor Rating

ESG Refinitiv

B-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

5.665 CNY

Average target price

7.226 CNY

Spread / Average Target

+27.55%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other Wireless Telecommunications Services

	1st Jan change	Capi.
CHINA UNICOM HONG KONG LIMITED	+24.90%	23.92B
T-MOBILE US	+2.26%	193B
AT&T INC.	-0.18%	120B
SOFTBANK GROUP CORP.	+23.66%	72.46B
KDDI CORPORATION	-2.36%	57.97B
VODAFONE GROUP PLC	+0.76%	23.3B
TELENOR ASA	+9.95%	16.07B
ADVANCED INFO SERVICE	-10.14%	15.66B
TAIWAN MOBILE CO., LTD.	+4.97%	9.6B
VODACOM GROUP LIMITED	-15.58%	9.2B

Other Wireless Telecommunications Services