Eldenminaj
2023-01-29

$CHINA UNICOM(00762)$  


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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