China Unicom (Hong Kong) (0762) AI Stock Analysis

• Market Cap: HK$239.89B
• Dividend Yield: 5.29%
• Average Volume (3M): 28.21M
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.50
• Revenue Growth: 3.54%
• EPS Growth: 5.36%
• Country: HK
• Employees: 240,617
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): N/A
• Shares Outstanding: 30,598,123,000
• 10 Day Avg. Volume: 30,556,499
• 30 Day Avg. Volume: 28,205,766
• PEG Ratio: 1.05
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 15.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$9.47
• Price Target Upside: 20.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.73
• Revenue Forecast (FY): HK$404.79B

• Rating: 73 Outperform
• Price Target: HK$8.00 ▲(2.04% Upside)
• Action: N/A Date: 10/28/25
• Date: Action: N/A 10/28/25

China Unicom's strong financial performance and attractive valuation are the primary strengths, supported by solid revenue growth and a healthy dividend yield. Technical indicators suggest a neutral trend with potential short-term overbought conditions. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Consistent revenue growth

Sustained top-line growth indicates persistent demand for telecom services and steady customer retention. Over a 2–6 month horizon this durability supports predictable service revenue, underpins investment capacity for network upgrades, and makes cash flow projections more reliable for planning and dividends.

High gross profit margin

A near-69% gross margin signals strong control of direct costs and possible pricing power in core connectivity services. This structural margin buffer helps absorb competitive pricing or input cost pressure, supporting sustained profitability and reinvestment capacity over the medium term.

Low leverage and strong capital structure

Very low leverage and a solid equity ratio provide financial flexibility for capex, 5G rollout, or strategic investments without stressing solvency. This capital structure supports dividend policy resilience and reduces refinancing risk over the coming months, improving the firm's ability to navigate cyclical pressures.

Negative Factors

Declining free cash flow

A marked drop in free cash flow reduces internal funding for capex, spectrum or network upgrades and limits buffer for dividends or debt paydown. Persistently lower FCF relative to net income strains liquidity planning and increases reliance on external funding for strategic initiatives over the medium term.

Erosion in operating efficiency

A falling EBIT margin points to rising operating costs or margin compression from competition and promotion. If this trend continues, it can blunt net profitability and reduce retained earnings available for investment, making long-term margin recovery and competitiveness more difficult.

Capital intensity and market/regulatory pressure

Telecoms require sustained, material capex (eg 5G) and face regulatory and competitive pressures that can depress ARPU and raise churn. These structural demands can keep margins and free cash flow constrained and necessitate continued investment, limiting near-term improvement in financial flexibility.

China Unicom (Hong Kong) Business Overview & Revenue Model

Company Description

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, maintenance, and technical services; and consultancy, survey, design, and contract services relating to information and construction projects. Further, it provides customer, project design consultation and monitoring, property management, e-payment, venture capital investment, communications technology development and promotion, auto informatization, 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 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; finanece leasing; and data analysis, processing, and application services, as well as sells handsets and telecommunication equipment. 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.

How the Company Makes Money

China Unicom generates revenue primarily through its telecommunications services, which include mobile voice and data services, fixed-line services, and broadband internet access. The company earns money from mobile subscribers through monthly service fees, usage charges, and value-added services. Additionally, significant revenue comes from fixed-line services, such as traditional voice calls and broadband subscriptions. The company also benefits from partnerships with various businesses for enterprise solutions, cloud services, and IoT applications, which contribute to its earnings. Moreover, government contracts and collaborations with international firms help to diversify its revenue streams and enhance its market positioning.

China Unicom (Hong Kong) Financial Statement Overview

Summary

China Unicom shows strong revenue growth and profitability with efficient cost management. The balance sheet is solid with low leverage, enhancing financial stability. However, the decline in free cash flow growth and operational efficiency needs attention to maintain long-term financial health.

Income Statement

China Unicom has demonstrated consistent revenue growth over the years, with a 2.25% increase in the latest year. The gross profit margin is strong at 68.98%, indicating efficient cost management. However, the EBIT margin has decreased to 4.12% from previous years, suggesting potential challenges in operational efficiency. The net profit margin remains stable at 5.29%, reflecting solid profitability.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.11, indicating low leverage and financial stability. Return on equity has improved to 5.71%, showing effective use of shareholder funds. The equity ratio stands at 53.79%, suggesting a strong capital structure. However, the slight increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Operating cash flow remains robust, but free cash flow has decreased significantly, impacting the free cash flow to net income ratio, which is now at 15.28%. The operating cash flow to net income ratio is 33.03%, indicating adequate cash generation relative to net income. The decline in free cash flow growth is a concern and needs attention to ensure long-term liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	392.45B	389.59B	372.60B	354.94B	327.85B	303.84B
Gross Profit	208.81B	268.72B	211.40B	250.59B	230.47B	169.92B
EBITDA	89.69B	84.01B	109.77B	108.48B	104.88B	100.66B
Net Income	21.30B	20.61B	18.73B	16.75B	14.37B	12.49B
Balance Sheet
Total Assets	663.83B	671.24B	661.05B	642.66B	591.08B	580.62B
Cash, Cash Equivalents and Short-Term Investments	61.94B	64.89B	85.27B	84.81B	70.69B	57.78B
Total Debt	36.84B	39.77B	45.54B	56.18B	36.55B	45.64B
Total Liabilities	290.04B	307.67B	307.15B	299.13B	257.64B	253.10B
Stockholders Equity	371.24B	361.05B	351.47B	341.62B	332.34B	326.59B
Cash Flow
Free Cash Flow	0.00	13.66B	23.02B	28.07B	38.59B	51.57B
Operating Cash Flow	0.00	89.40B	102.39B	100.54B	110.64B	105.55B
Investing Cash Flow	0.00	-84.66B	-85.54B	-56.11B	-74.78B	-92.02B
Financing Cash Flow	0.00	-24.06B	-24.52B	-23.81B	-24.58B	-25.21B

China Unicom (Hong Kong) Technical Analysis

• Last Price: 7.84

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0762, the sentiment is undefined. The current price of 7.84 is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for HK:0762.

China Unicom (Hong Kong) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0762	73 Outperform	HK$239.89B	7.60	5.77%	5.29%	3.54%	5.36%
1883	73 Outperform	HK$9.77B	4.82	8.67%	7.46%	-0.62%	-5.10%
0788	72 Outperform	HK$181.44B	16.37	5.62%	4.03%	3.24%	8.66%
6823	72 Outperform	HK$92.51B	16.50	14.75%	2.86%	2.33%	2.41%
0728	67 Neutral	€596.29B	14.32	7.66%	5.40%	0.53%	5.28%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0008	49 Neutral	HK$46.53B	-1,547.01	―	1.68%	4.26%	36.68%

China Unicom (Hong Kong) Corporate Events

China Unicom Warns of Profit Impact as VAT Rate Rises on Core Telecom Services

China Unicom (Hong Kong) Limited has announced that, following a new directive from China’s Ministry of Finance and State Taxation Administration effective 1 January 2026, mobile data, SMS/MMS, and internet broadband access services will be reclassified from value-added telecommunications services to basic telecommunications services for VAT purposes, with the applicable tax rate rising from 6% to 9%. The company warns that this tax category adjustment will negatively affect its revenue and profit, but says it will respond by doubling down on its core business areas of connectivity, computing power, service and security, aiming to sharpen its differentiated advantages, improve operational efficiency and sustain steady, long-term high-quality development, while advising shareholders and investors to exercise caution when dealing in its securities.

The most recent analyst rating on (HK:0762) stock is a Buy with a HK$9.00 price target. To see the full list of analyst forecasts on China Unicom (Hong Kong) stock, see the HK:0762 Stock Forecast page.

China Unicom (Hong Kong) Names Dong Xin as Chairman and CEO

China Unicom (Hong Kong) has appointed Dong Xin as executive director, chairman, chief executive officer and a member of its nomination committee, effective 14 January 2026. Dong, 59, brings extensive senior management experience in China’s telecommunications sector, having held a series of top roles at China Mobile and currently serving as chairman of China United Network Communications Group and China United Network Communications Corporation. His remuneration will be set by the board with reference to his responsibilities, experience, market conditions and regulatory requirements, and he will be subject to retirement and re-election at the first annual general meeting following his appointment. The move signals a leadership reshuffle that may further align China Unicom’s listed arm with its parent group’s strategic direction, reinforcing management depth and potentially influencing its competitive positioning in China’s telecoms industry.

The most recent analyst rating on (HK:0762) stock is a Hold with a HK$9.50 price target. To see the full list of analyst forecasts on China Unicom (Hong Kong) stock, see the HK:0762 Stock Forecast page.

China Unicom (Hong Kong) Sets Out Board and Committee Line-Up

China Unicom (Hong Kong) Limited has confirmed the current composition of its board of directors, led by Chairman and Chief Executive Officer Dong Xin, President Jian Qin, and Chief Financial Officer Li Yuzhuo, alongside four independent non-executive directors. The company also detailed the membership of its three key board committees, appointing independent non-executive directors to chair the audit, remuneration and nomination committees, underscoring a governance structure that emphasizes independent oversight and regulatory compliance, which is likely to be viewed positively by investors and other stakeholders concerned with board accountability and corporate governance standards.

The most recent analyst rating on (HK:0762) stock is a Hold with a HK$9.50 price target. To see the full list of analyst forecasts on China Unicom (Hong Kong) stock, see the HK:0762 Stock Forecast page.