Core Insights - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (71.06%), COSCO Shipping Energy (70.70%), and GCL-Poly Energy (69.65%) [1] - In the last five trading days, the largest increases in holding amounts were seen in China Mobile (+2.122 billion), Pop Mart (+1.922 billion), and InnoCare Pharma (+1.868 billion) [1] - Conversely, Alibaba (-3.735 billion), SMIC (-2.181 billion), and Laopuhuangjin (-1.048 billion) experienced the largest decreases in holding amounts [2] Group 1: Hong Kong Stock Connect Holding Ratios - China Telecom (00728) has a holding ratio of 71.06% with 9.863 billion shares [1] - COSCO Shipping Energy (01138) has a holding ratio of 70.70% with 916 million shares [1] - GCL-Poly Energy (01330) has a holding ratio of 69.65% with 282 million shares [1] - Other notable companies include China Shenhua (67.73%), Kaisa Group (67.65%), and China Southern Power Grid (66.07%) [1] Group 2: Recent Increases in Holdings - China Mobile (00941) saw an increase of +2.122 billion with a change of +24.9322 million shares [1] - Pop Mart (09992) increased by +1.922 billion with +8.2689 million shares added [1] - InnoCare Pharma (09606) rose by +1.868 billion with an increase of +6.2468 million shares [1] - Other companies with significant increases include Meituan (+1.614 billion), Xiaomi (+1.591 billion), and CNOOC (+1.476 billion) [1] Group 3: Recent Decreases in Holdings - Alibaba (09988) experienced a decrease of -3.735 billion with a reduction of -22.6890 million shares [2] - SMIC (00981) saw a decline of -2.181 billion with -29.4595 million shares sold [2] - Laopuhuangjin (06181) decreased by -1.048 billion with a drop of -1.5141 million shares [2] - Other companies with notable decreases include Innovent Biologics (-0.844 billion), China Hongqiao (-0.707 billion), and Jiangxi Copper (-0.670 billion) [2]

Core Insights - China Unicom's operating performance continues to show steady growth, with a revenue of 292.985 billion yuan and a net profit of 8.772 billion yuan for the first three quarters of 2025, reflecting a year-on-year growth of 1% and 5.2% respectively [2][3] - Despite a slowdown in growth rates compared to the same period in 2024, China Unicom's net profit growth remains the fastest among the three major telecom operators, with a significant acceleration in its non-recurring net profit growth of 10.9% [2][4] Financial Performance - For the first three quarters of 2025, China Unicom's revenue and net profit growth rates have slowed compared to 2024, where the revenue was 290.123 billion yuan and net profit was 8.338 billion yuan, showing growth rates of 2.99% and 10.04% respectively [3][4] - The non-recurring profit for China Unicom was 1.149 billion yuan, down from 1.462 billion yuan in the previous year, while the non-recurring net profit reached 7.623 billion yuan, marking a 10.9% increase from 6.876 billion yuan in the previous year [4][5] Research and Development - China Unicom increased its R&D investment to 5.761 billion yuan, a growth of 5.9% year-on-year, continuing a trend of rising R&D expenditures over the past few years [2][9] - The company is focusing on next-generation internet technologies, big data, artificial intelligence, and other key areas, enhancing its capabilities in 6G, low-altitude smart networks, satellite internet, and quantum technology [8][9] Market Position and Strategy - The traditional telecom market is nearing saturation, with a slowdown in user growth for mobile and broadband services, prompting the need for digitalization and innovative business models to drive growth [4][7] - China Unicom's mobile user base reached 356 million, with a net increase of 12.48 million users, while its broadband user base grew to 129 million, with a net increase of 6.79 million users [7] - The company is also expanding its cloud services, reporting a revenue of 52.9 billion yuan from cloud services and 21.4 billion yuan from data centers, reflecting an 8.9% year-on-year increase [7][8] Financial Health - As of September 30, 2025, China Unicom's debt-to-asset ratio improved to 43.45%, a decrease of 1.74 percentage points from the end of 2024, indicating a strengthening financial position [2][9] - The company reported a net operating cash flow of 58.363 billion yuan for the first three quarters of 2025, showing slight growth compared to the previous year, and maintained a strong cash position with 52.075 billion yuan in cash compared to 16.244 billion yuan in interest-bearing debt [9][10]

Core Insights - The three major telecom operators in China reported revenue and net profit growth for the third quarter, despite a slowdown in revenue growth [2] Group 1: Financial Performance - China Mobile reported a total revenue of 794.67 billion yuan for the first three quarters, a year-on-year increase of 0.41%, with a net profit of 115.35 billion yuan, up 4.03% [1] - China Telecom's revenue for the first three quarters was 394.27 billion yuan, a 0.59% increase year-on-year, with a net profit of 30.77 billion yuan, up 5.03% [1] - China Unicom achieved a revenue of 292.99 billion yuan for the first three quarters, a 1% increase year-on-year, with a net profit of 8.77 billion yuan, up 5.2% [1] Group 2: Daily Earnings - In the first three quarters, China Mobile earned an average of 427 million yuan per day, leading the sector [2] - China Telecom's daily earnings were 114 million yuan, while China Unicom's daily earnings stood at 33 million yuan [2] Group 3: User Growth - As of September 30, China Mobile had a total of 1.009 billion mobile customers, with a net increase of 4.56 million, and 622 million 5G customers, netting an increase of 23 million [3] - China Unicom's mobile customer base reached 356 million, with a net increase of 12.48 million, including 225 million 5G customers and 129 million fixed broadband users [3] - China Telecom reported a total of 437 million mobile customers, with a net increase of 12.67 million, and 292 million 5G customers, with a penetration rate of 66.9% [3]

Core Insights - The three major telecom operators in China reported revenue and net profit growth for the third quarter, despite a slowdown in revenue growth [2][3] - Total revenue for the three operators in the first three quarters reached 14,819.26 billion yuan, with a combined net profit of 1,549 billion yuan [2] Group 1: Financial Performance - China Mobile's revenue for the first three quarters was 7,946.66 billion yuan, a year-on-year increase of 0.41%, with a net profit of 1,153.53 billion yuan, up 4.03% [1] - China Telecom reported revenue of 3,942.70 billion yuan, a 0.59% increase, and a net profit of 307.73 billion yuan, up 5.03% [1] - China Unicom's revenue was 2,929.9 billion yuan, growing by 1%, with a net profit of 87.7 billion yuan, an increase of 5.2% [1] Group 2: User Growth - As of September 30, China Mobile had a total of 1.009 billion mobile customers, with a net increase of 4.559 million, and 622 million 5G network customers, netting an increase of 23 million [3] - China Unicom's mobile customer base reached 356 million, with a net increase of 12.48 million, including 225 million 5G network customers and 129 million fixed broadband users [3] - China Telecom had 437 million mobile customers, a net increase of 12.67 million, with 292 million 5G network customers and a penetration rate of 66.9% [3]

Investment Rating - The investment rating for China Unicom is "Buy" [1] Core Views - The company has shown significant user growth, with mobile users reaching 356 million, a net increase of 12.48 million, and broadband users at 129 million, a net increase of 6.79 million, marking the highest net user growth in recent years [3] - Revenue for the first three quarters of 2025 was 292.985 billion yuan, a year-on-year increase of 0.99%, while net profit attributable to shareholders was 8.772 billion yuan, up 5.20% year-on-year [2] - The company is focusing on enhancing its satellite internet and low-altitude smart network capabilities, having received a business license for satellite mobile communication [5] - The gross margin improved to 27.0%, an increase of 1.0 percentage point year-on-year, contributing to profit growth [4] Summary by Sections User Growth and Business Development - The company achieved a record net increase in users, with mobile users at 356 million and broadband users at 129 million, alongside over 700 million IoT connections [3] Financial Performance - For Q3 2025, revenue was 92.783 billion yuan, with a net profit of 2.423 billion yuan, reflecting a year-on-year increase of 5.40% [2] - The gross margin for the first three quarters was 27.0%, and the net profit margin was 6.8% [4] Strategic Initiatives - The company is investing in 5G-A and broadband upgrades, with a total computing power exceeding 35 EFLOPS, and is expanding into 6G and quantum technology [5] Investment Recommendations - The company is expected to see continued revenue growth driven by its intelligent computing business, with projected revenues of 404.1 billion yuan in 2025, 419.15 billion yuan in 2026, and 434.74 billion yuan in 2027 [6]

Group 1: Industry Performance Overview - The performance of Hong Kong-listed companies is under scrutiny as Q3 2025 earnings reports are released, with notable growth in the non-ferrous metals and insurance sectors, while the retail giant, Gao Xin Retail, reported losses [1] - Resource stocks, particularly in the gold sector, have shown significant earnings growth, with companies like Zijin Mining and Shandong Gold reporting substantial increases in revenue and net profit [2][4] Group 2: Company-Specific Highlights - Jinli Permanent Magnet reported a revenue of 5.373 billion yuan for the first three quarters, a year-on-year increase of 7.16%, and a net profit of 515 million yuan, up 161.81% [3] - Zijin Mining achieved a revenue of 254.2 billion yuan, a 10.33% increase, and a net profit of 37.864 billion yuan, up 55.45%, driven by strong performance in its gold business [3] - Shandong Gold expects a net profit of 3.8 billion to 4.1 billion yuan for the first three quarters, reflecting an increase of 83.9% to 98.5% year-on-year [4] - China Pacific Insurance anticipates a net profit increase of approximately 40% to 60% for Q3 2025, benefiting from a stable economic environment and improved investment returns [6] - China Life Insurance projects a net profit of approximately 156.785 billion to 177.689 billion yuan, representing a year-on-year growth of 50% to 70% [7] - Major telecom operators like China Mobile, China Telecom, and China Unicom reported stable growth, with China Mobile's revenue reaching 794.7 billion yuan, a 0.4% increase [10] Group 3: Retail Sector Challenges - Gao Xin Retail, the parent company of RT-Mart, expects a net loss of approximately 110 million to 140 million yuan for the first half of 2025, compared to a profit of 186 million yuan in the same period last year, primarily due to increased market competition and declining consumer spending [12]

Core Viewpoint - China Telecom has announced that it will resume processing eSIM applications for individuals over 60 years old starting October 24, following a temporary restriction that limited eSIM services to those aged 18 to 60 [1] Group 1 - The eSIM service is currently in a trial operation phase [1] - A user was previously denied eSIM service at a China Telecom outlet due to the age restriction [1] - The restriction was communicated to staff on October 22, leading to confusion among customers [1]

Core Viewpoint - UBS has lowered the target price for China Unicom (600050) (00762) from HKD 11.6 to HKD 11 while maintaining a "Buy" rating, reflecting adjustments in profit forecasts due to macroeconomic headwinds affecting business growth [1] Financial Performance - For Q3 2025, China Unicom reported service revenue of RMB 83.3 billion, a year-on-year increase of 0.2%, and EBITDA of RMB 25.4 billion, also up 0.1% year-on-year [1] - Both service revenue and EBITDA figures were below market consensus by 1-2%, but in line with industry peers [1] - Net profit increased by 5.3% year-on-year, consistent with the 5% growth rate observed in the first half of 2025 [1] Depreciation Policy Change - Starting from October 1, 2024, China Unicom will extend the depreciation period for its 4G assets from 7 years to 10 years, benefiting from depreciation savings and contributing to profit growth in Q3 2025, outperforming peers [1]

Core Viewpoint - UBS has lowered the target price for China Unicom (00762) from HKD 11.6 to HKD 11 while maintaining a "Buy" rating, reflecting adjustments in profit forecasts due to macroeconomic headwinds affecting business growth [1] Financial Performance - For Q3 2025, China Unicom reported service revenue of RMB 83.3 billion, a year-on-year increase of 0.2% [1] - EBITDA for the same period was RMB 25.4 billion, showing a year-on-year growth of 0.1% [1] - Both service revenue and EBITDA figures were below market consensus by 1-2%, but in line with industry peers [1] - Net profit increased by 5.3% year-on-year, consistent with the 5% growth rate observed in the first half of 2025 [1] Depreciation Policy Change - Starting from October 1, 2024, China Unicom will extend the depreciation period for its 4G assets from 7 years to 10 years, benefiting from depreciation savings [1] - This change is expected to contribute to profit growth in Q3 2025, allowing China Unicom to outperform its peers [1]

Core Points - The iPhone Air has officially launched in mainland China, marking the first phone in the region to support eSIM technology [1] - The eSIM service is currently supported by major carriers in mainland China, including China Unicom, China Telecom, and China Mobile, while China Broadcasting Network does not support it [3][4] - The eSIM business is still in its early stages in mainland China, with ongoing improvements in processes and policies [19] Carrier Support - China Unicom, China Telecom, and China Mobile support eSIM services for the iPhone Air (model: A3518), while China Broadcasting Network does not [3] - Not all physical stores support eSIM services; only designated stores of China Unicom can process eSIM applications [3] - China Unicom previously announced a door-to-door eSIM service in Shenzhen, but the status of this service is currently unclear [3] Requirements for eSIM - The requirements for obtaining an eSIM are similar to those for traditional SIM cards, with a limit of 5 active cards per carrier and a total of 10 across all carriers in mainland China [4] - There are no restrictions on the type of plans available for eSIM services, allowing both new applications and transfers from existing cards [5] Application Process - The application process for eSIM is reported to be convenient, taking approximately 10 minutes for activation at a physical store [6] - eSIM services are available for both local and some cross-province applications, but there are limitations on cross-city and cross-province services depending on the carrier [8][9] Eligibility for Foreign Residents - Residents from Hong Kong, Macau, and Taiwan can apply for eSIM services using specific travel documents, but cannot do so from different locations [11] - Foreigners can also apply for eSIM services using their passports or permanent residency documents, but China Telecom does not support this group [12] eSIM Management - Users can manage their eSIMs directly through their device settings, including deleting and switching eSIMs [15][16] - Deleting an eSIM does not cancel the number; users must visit a physical store to transfer or reactivate the eSIM [18] Conclusion - The launch of the iPhone Air signifies the beginning of the eSIM era in mainland China, with expectations for further development and improvements in eSIM services from various brands and products [19]