China Unicom(600050)2024-10-20 16:58Investment Rating - The report assigns an "Overweight" rating to China Unicom [3][10][17] - The price target is set at HK6.96 [3][10] Core Insights - China Unicom showcased a flagship 5G smart factory project with Paideer Battery, which significantly improves production efficiency by reducing production tasks from two days to just two hours [3][10] - The company views data as a crucial driver for future growth, engaging in the construction of third-party trustable data spaces to enhance AI development [3][10] - China Unicom is enhancing its receivables collection process by switching to continuous collection throughout the year, aiming for better cash flow management [3][10] Financial Projections - For the fiscal year ending December 2023, the projected revenue is Rmb 372.6 billion, with an EBITDA of Rmb 82.7 billion [3][10] - The earnings per share (EPS) estimates are projected to grow from Rmb 0.61 in 2023 to Rmb 0.82 by 2026 [3][10] - The net income is expected to increase from Rmb 18.7 billion in 2023 to Rmb 25.0 billion by 2026 [3][10] Market Position - China Unicom's market capitalization is currently US12.1 billion [3][10] - The company has a significant stake in China Tower, valued at HK$0.9 per share, contributing to its overall valuation [10]