Morgan Stanley has set a target price of HKD 9.5 and an "Overweight" rating for China Unicom (00762). The company's service revenue for the third quarter of this year was CNY 83 billion, remaining steady year-on-year, aligned with the bank's expectations. Notably, revenue from Unicom Cloud grew by 26% year-on-year to CNY 15.3 billion. During the same period, EBITDA also held steady at CNY 25.4 billion compared to the previous year, which met the bank's forecast. The service EBITDA margin stood at 30.5%. Benefiting from a decline in depreciation costs, net profit saw a year-on-year increase of 5.3% to CNY 5.5 billion, also in line with expectations. The company plans to spin off its smart network technology for a listing on the ChiNext board, pending regulatory approval.
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