Core Viewpoint - China Unicom's mid-term performance shows revenue growth and stable dividend increase, despite challenges in cash flow and profitability [1] Financial Performance - China Unicom's revenue exceeded 200 billion RMB in the first half of the year, marking a year-on-year increase of 1.5% [1] - The pre-tax profit reached 17.8 billion RMB, reflecting a year-on-year growth of 5.1% [1] - The company reported a net communication revenue of 131.9 billion RMB [1] - The smart connection revenue amounted to 45.4 billion RMB, accounting for 26% of total revenue [1] Dividend Policy - The board of directors declared an interim dividend of 0.2841 RMB per share (before tax), which is a 14.5% increase compared to the previous year [1] - The dividend payout ratio increased by 5 percentage points year-on-year [1] Market Analysis - Goldman Sachs noted that while revenue growth, cash flow, and profitability are under pressure, the stable dividend growth remains a key attraction for local investors [1] - The firm anticipates that the increase in accounts receivable leading to higher bad debt provisions will improve in the second half of the year, alleviating profit pressure [1]

Core 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]