里昂：升中国联通目标价至11港元 维持“跑赢大市”评级

Core Viewpoint - China Unicom's (600050) (00762) H1 performance fell short of expectations, with total service revenue and net profit growing by 1.5% and 5% year-on-year to RMB 178.4 billion and RMB 145.5 billion, respectively, which were 0.9% and 3.5% lower than the forecast by Citi [1] Group 1: Financial Performance - Total service revenue for H1 reached RMB 178.4 billion, reflecting a year-on-year growth of 1.5% [1] - Net profit for the same period was RMB 145.5 billion, showing a year-on-year increase of 5% [1] Group 2: Analyst Ratings and Price Target - Citi maintains a "Outperform" rating for China Unicom, raising the target price from HKD 9.5 to HKD 11 [1] - The adjustment in target price reflects a 20% reduction in the 10-year capital expenditure forecast to align with management's guidance for stable capital spending [1] Group 3: Management Guidance - Management expects stable profit growth, with capital expenditure projected to decrease by 10% to RMB 55 billion by 2025 [1] - The interim dividend declared is RMB 0.28 per share, representing a year-on-year increase of 14.5%, with a payout ratio of 60%, up by 5 basis points year-on-year [1]