Although it has gone up by 53%, it is still extremely undervalued.
-China unicom is the main 3 Telco providers in China (A natural monopoly)
-It has a Market Cap of 148 B RMB.
-In 2021, It has a free cash flow of RMB 41.68 Billion
-It has a cash balance of 44.67 Billion
-Using DCF method, the intrinsic value of this company is RMB 492 Billion. This calculation is based on 2% fcf growth rate for next 10 years, 10% discount rate and a terminal multiple of 10. With the current net market cap of 103.33 Billion, the company is undervalued by 79%!!
Hong Kong stocks has also been extremely bullish in the past many months. This company is a defensive company, with a very healthy balance shset, a natural moat, and strong free cash flow.
My suggestion is to add more into ur position!
DBS bank has also covered on this stock, giving it a buycall with target price of HK 6.80!
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