BOC International Maintains Buy Rating on China Unicom but Lowers Target Price to HK$9.55

Stock News04-24 10:28

BOC International has revised its earnings forecast for China Unicom (00762) for the years 2026 to 2028, reducing estimates by 11.8%, 9.1%, and 5.5%, respectively. The firm reiterated its "Buy" rating on the stock, although it lowered the target price from HK$11.93 to HK$9.55. In the first quarter of this year, China Unicom reported a 0.9% year-on-year decline in service revenue to RMB 90.1 billion, primarily due to the impact of an increase in the value-added tax rate effective from 2026. Net profit for the period fell by 17.6% to RMB 4.9 billion. The bank noted that the VAT rate for relevant services has been raised from 6% to 9%, making the first quarter the first full period to reflect the tax adjustment. BOC International highlighted that the company's strong free cash flow and a dividend payout ratio of 61% for 2025 provide valuation support.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment