China Unicom(SH:600050) Ge Long Hui·2025-08-19 03:03Core Viewpoint - Goldman Sachs reports that China Unicom's mid-term performance shows revenue growth, but cash flow and profitability are under pressure, while dividend growth remains robust [1] Group 1: Financial Performance - China Unicom's earnings per share dividend increased by 14.5% year-on-year in the first half of the year [1] - The dividend payout ratio increased by 5 percentage points year-on-year [1] - Goldman Sachs expects the increase in accounts receivable leading to higher bad debt provisions will improve in the second half of the year, alleviating profitability pressure [1] Group 2: Investment Outlook - Chinese telecom stocks have become a primary high-yield return choice for local investors due to their stable dividend capabilities and willingness to increase dividends [1] - Goldman Sachs maintains a "Buy" rating on China Unicom, raising the target price from HKD 10.4 to HKD 11.2 [1] Group 3: Future Projections - Goldman Sachs slightly lowers future revenue forecasts to reflect a slowdown in cloud business revenue growth, with revenue projections for 2025 to 2027 reduced by 1.1% to 3.6% [1] - EBITDA forecasts are adjusted downwards by 0.9% to 2.8% for the same period [1]