Morningstar - China Unicom (Hong Kong) Limited (00762) China Unicom Loses Its Narrow Moat; Fair Value Estimate Reduced to HKD 11.20

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Morningstar

Dan Baker

EUR 100.00 For Business Accounts Only

China Unicom Loses Its Narrow Moat; Fair Value Estimate Reduced to HKD 11.20

We have moved China Unicom to no-moat and stable trend ratings from narrow moat and negative trend ratings previously. The main reason for the move to no-moat is persistent returns below its cost of capital. The negative trend was previously based on the loss of a technology advantage as the industry moved from 3G to 4G technology. This has now largely played out as most traffic is now on the 4G network, so we move to stable trend. The change in moat rating and slight decrease in the value of th...

01/11/2018 13 EN

Underlying

China Unicom (Hong Kong) Limited

China Unicom (Hong Kong) is an investment holding company. Through its subsidiaries, Co. is a telecommunications operator in China. Co. is engaged in providing mobile voice, fixed-line voice, fixed-line broadband, data communications and other telecommunications services to its customers.Co. is engaged in the provision of cellular and fixed-line voice and related value-added services, broadband and other Internet-related services, information communications technology services, and business and data communications services. The GSM cellular voice, WCDMA cellular voice, TD-LTE cellular voice, LTE FDD cellular voice and related value-added services are referred to as the .mobile business.

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HK0000049939 Hong Kong Stock Exchange Hong Kong

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Dan Baker

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China Unicom Loses Its Narrow Moat; Fair Value Estimate Reduced to HKD 11.20

Chinese Telcos Q3 24 review: Macro continues to impact the top line

Chinese Telcos Q2 24 review: Strong earnings despite softer topline; rising dividends

Chinese Telcos Q1 24 review: Sustained topline growth with some margin relief

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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