Morgan Stanley has released a research report indicating that China Unicom's first-quarter performance was slightly below expectations. Service revenue decreased by 0.9% year-on-year to RMB 90.1 billion, aligning with the bank's forecast. EBITDA fell by 6.6% year-on-year to RMB 24.3 billion, which was 1.6% lower than the bank's projection. Net profit declined by 17.6% year-on-year to RMB 4.885 billion, coming in 3.4% below the bank's estimate. During the period, revenue from computing power services increased by 8% year-on-year, with data center (IDC) revenue rising by 11.5%. The EBITDA margin for service revenue stood at 27%. The bank has maintained its "Market Perform" rating on China Unicom with a target price of HKD 7.
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