Core Viewpoint - China Unicom is focusing on enhancing its cloud services and digital infrastructure, with significant revenue growth in its cloud and IDC segments, indicating a strong position in the digital economy [2][9]. Group 1: Financial Performance - In 2024, China Unicom achieved a revenue of RMB 200.2 billion, a year-on-year increase of 1.45%, and a net profit of RMB 6.349 billion, up 5.12% [9]. - The company reported a cloud revenue of RMB 26.87 billion, a substantial increase of 142% year-on-year, while IDC revenue reached RMB 18.61 billion, growing by 12.9% [2]. - The main business revenue composition includes broadband and mobile data services (38.49%), data and other internet applications (27.48%), and value-added services (7.78%) [9]. Group 2: Strategic Initiatives - China Unicom is part of a collaboration with other major telecom operators to launch 5G roaming services, enhancing network efficiency and customer experience without additional costs [3]. - The company has launched the "Smart Home" initiative, which integrates various communication services for families, marking a shift from traditional service bundling [4]. Group 3: Market Position and Shareholder Information - As of June 30, 2025, China Unicom had 556,900 shareholders, with an average of 55,248 shares per shareholder, indicating a slight increase in share distribution [9]. - The company has distributed a total of RMB 35.536 billion in dividends since its A-share listing, with RMB 12.427 billion in the last three years [10]. - Major shareholders include Hong Kong Central Clearing Limited and various ETFs, reflecting a diversified ownership structure [10].

Investment Rating - The report maintains a "Buy" rating for H-shares and an "Accumulate" rating for A-shares [6] Core Views - The company reported a steady revenue growth of 1.45% year-on-year for the first half of 2025, achieving a total revenue of 200.2 billion RMB and a net profit of 6.349 billion RMB, which is a 5.12% increase year-on-year [1] - The company is expected to benefit from the growth of its cloud computing and data center businesses, driven by the development of the domestic AI industry, presenting new growth opportunities [1][3] - The company plans to distribute an interim dividend of 0.284 RMB per share, reflecting a 14.5% increase, indicating strong dividend attractiveness [1] Revenue and User Growth - The company's connectivity business revenue grew by 0.4% year-on-year to 131.9 billion RMB, with a net increase of 11.19 million mobile and broadband users, reaching a total of 480 million users [2] - The average revenue per user (ARPU) for integrated services exceeded 100 RMB, with 270 million users utilizing value-added cloud intelligence products [2] Intelligent Computing and International Expansion - The intelligent computing segment saw a revenue increase of 4.3% year-on-year to 45.4 billion RMB, with cloud revenue reaching 37.6 billion RMB, a 4.6% increase [3] - The company is accelerating its international business expansion, with international revenue growing by 11% to 6.8 billion RMB [3] Profitability and Cash Flow - The company's return on equity (ROE) improved by 0.07 percentage points to 3.75%, and the net profit margin increased by 0.24 percentage points to 7.21% due to enhanced operational efficiency [4] - Capital expenditures decreased by 15% year-on-year to 20.2 billion RMB, with expectations of further profit and cash flow release as 5G base station construction nears completion [4] Earnings Forecast - The projected net profit for the company for 2025-2027 is 9.602 billion RMB, 10.124 billion RMB, and 10.643 billion RMB respectively, with a downward adjustment of 4.5%, 8.5%, and 11.4% from previous estimates [5] - The estimated book value per share (BPS) for 2025 is 5.77 RMB, with a target price of 7.56 RMB for A-shares based on a price-to-book (PB) ratio of 1.31 [5][12]

Core Viewpoint - The high dividend sectors in the Hong Kong stock market have long-term investment value under the current liquidity easing environment, driven by stable earnings in banks and improved supply-demand dynamics in midstream material industries [1] Group 1: High Dividend Sectors - High dividend stocks continue to attract low-cost capital inflows due to declining non-standard investment returns [1] - The banking sector maintains stable profitability and dividend levels, contributing to the attractiveness of high dividend stocks [1] - The PPI stabilization expectations enhance the profitability recovery of companies in the midstream materials sector, such as coke and rebar [1] Group 2: Insurance Sector - The insurance sector shows a strong trend towards concentration among leading companies, with improved performance certainty driven by long-cycle assessments and interest rate cuts [1] Group 3: Investment Products - The Hong Kong Stock Connect High Dividend ETF (159331) tracks the Hong Kong Stock Connect High Dividend Index (930914), which selects 30 liquid stocks with high dividend yields [1] - The index primarily covers traditional high dividend sectors such as banking, ports, and highways, while also including industrial metals and telecom operators [1] - Investors without stock accounts can consider the Cathay CSI Hong Kong Stock Connect High Dividend Investment ETF linked A (022274) and C (022275) [1]

Core Viewpoint - The introduction of eSIM technology in the Chinese mobile phone market is gaining momentum, with China Unicom leading the charge, but there are significant challenges and limitations that may hinder widespread adoption [2][20][27]. Group 1: eSIM Technology Overview - eSIM integrates traditional SIM card functions directly into device chips, eliminating the need for a physical SIM card slot, which allows manufacturers to utilize the freed-up space for larger batteries or advanced camera modules [3][20]. - eSIM can store multiple numbers, making it convenient for users traveling abroad to switch to local numbers easily [6][15]. Group 2: Challenges and Limitations - The process of switching devices becomes more complicated with eSIM, requiring users to deregister the eSIM from the old device and download a configuration file on the new device, which can be problematic if the old device is lost or damaged [6][10]. - Current eSIM activation processes in China still require users to visit physical stores, which does not significantly differ from the traditional SIM card activation process [10][20]. Group 3: International Considerations - Many countries still rely on physical SIM cards, which poses a challenge for users with eSIM-only devices when traveling abroad, as they may need to purchase eSIM travel cards that are often more expensive than local physical SIM cards [12][15]. - Domestic devices may only activate local eSIMs when abroad, limiting the flexibility of using eSIM technology for international users [20][25]. Group 4: Market Dynamics - China Unicom is actively promoting eSIM services, having restored eSIM operations in 25 provinces, while China Mobile is gradually advancing its eSIM offerings, and China Telecom remains cautious and has not yet completed its eSIM upgrades [20][23]. - The transition from physical SIM cards to eSIMs in China is expected to take several years, as the entrenched habits of users and the existing infrastructure pose significant barriers to rapid adoption [23][25].

Group 1 - The stock price of China Telecom as of August 7, 2025, is 7.30 yuan, down 0.68% from the previous trading day, with a trading volume of 1.3741 million hands and a turnover of 1.004 billion yuan [1] - China Telecom is one of the three major basic telecom operators in China, providing fixed and mobile communication services, internet access services, and comprehensive information services [1] - The recent resumption of eSIM business by telecom operators has attracted market attention, with China Unicom leading the way in 25 provinces, primarily targeting the IoT and smart wearable device sectors [1] Group 2 - China Telecom is cautious in advancing its eSIM business due to the need for physical SIM cards for authentication in its Tiantong satellite communication services [1] - Major smartphone manufacturers like Huawei and Apple are actively developing eSIM technology, with the first batch of eSIM-supported phones expected to be launched by the end of the year [1] - On August 7, 2025, the net outflow of main funds for China Telecom was 99.5185 million yuan, with a total net outflow of 12.504 million yuan over the past five days [1]

2025 Interim Results 7 August 2025 1 Disclaimer This document does not constitute an offer or invitation to purchase or subscribe for any securities or relevant derivatives of China Mobile Limited (the "Company") or the rendering of any investment advice, and no part thereof shall be relied upon or taken as the basis of any contract, commitment or investment decision relating to such securities or relevant derivatives, and this document does not constitute a recommendation in respect of the securities or re ...

Core Viewpoint - China Unicom is focusing on enhancing its cloud services and digital infrastructure to support the national digital economy strategy, with significant revenue growth in cloud products and data centers [2][9]. Financial Performance - For the first quarter of 2025, China Unicom reported a revenue of RMB 1,033.54 billion, a year-on-year increase of 3.88%, and a net profit attributable to shareholders of RMB 26.06 billion, up 6.50% year-on-year [9]. - The company has distributed a total of RMB 355.36 billion in dividends since its A-share listing, with RMB 124.27 billion in the last three years [10]. Business Strategy - The company aims to integrate cloud and network services, creating a comprehensive and secure computing network to meet diverse digital demands, positioning itself as a key player in the digital economy [2][8]. - China Unicom is actively participating in the national "East Data West Computing" project, enhancing its service capabilities in data centers and cloud computing [2][3]. Market Activity - On August 7, China Unicom's stock rose by 0.19%, with a trading volume of RMB 9.74 billion and a market capitalization of RMB 1,672.65 billion [1]. - The stock has seen a net outflow of RMB 46.06 million from major investors, indicating a reduction in holdings over the past few days [4][5]. Shareholder Information - As of March 31, 2025, the number of shareholders increased to 592,600, with an average of 51,921 shares held per shareholder, reflecting a decrease of 10.64% [9]. - Major shareholders include Hong Kong Central Clearing Limited and various ETFs, with some increasing and others decreasing their holdings [10].

TPG Telecom (TPG) Update Summary Company Overview - **Company**: TPG Telecom - **Date of Briefing**: August 04, 2025 - **Key Speakers**: Paul Hutton (Investor Relations), Innaki Beretta (CEO), John Bonicoli (CFO), James Hall (General Manager of Capital Markets) Key Points Financial Position and Capital Management - TPG has completed the Vocus transaction, resulting in cash proceeds of **$4.7 billion** [2] - Plans to return up to **$3 billion** to shareholders through a pro rata capital reduction, translating to a cash distribution of **$1.61 per share** [3][6] - Up to **$2.4 billion** of bank borrowings will be repaid, aiming for an investment-grade financial position [3][8] - Annual dividends will remain at **$0.18 per share** for 2025, with intentions to grow over time as profits increase [4][12] Strategic Moves and Market Position - The Vocus transaction has streamlined TPG's structure, enhancing its competitive position as a cost-efficient mobile-led telco [5] - TPG aims to increase minority shareholder ownership through a reinvestment plan, allowing shareholders to reinvest their capital reduction distribution into new shares [7] - The company has established a long-term partnership with Vocus to grow customer numbers and data volumes [5] Operational Performance - TPG's fiber network and enterprise business were previously subscale; the Vocus deal has improved the economics of TPG's network access [5] - The company reported a **6.1%** increase in EBITDA for 2024 compared to 2023, with a pro forma EBITDA guidance of **$1.6 billion to $1.655 billion** for FY 2025 [21][20] - Operating free cash flow increased by **$490 million** between 2023 and 2024, indicating a healthy underlying business [20] Subscriber Metrics - Mobile subscribers increased by **100,000** to **5.615 million** [29] - Fixed subscribers totaled **2.021 million**, with a modest increase in fixed ARPU to **$26.11** [30] - TPG has seen an **82%** increase in data volumes in regional areas and a **20%** increase in voice traffic [28] Market Dynamics - TPG has gained market share in smaller towns and fringe urban areas, with a **1%** aggregate increase [28] - The company is focused on maintaining a competitive edge in a low-risk essential services industry, emphasizing customer-centric operations [34] Future Outlook - TPG expects to maintain a strong cash flow outlook driven by lower CapEx, completion of legacy financing unwinds, and reduced borrowing costs [25] - The company is targeting a reduction in operating costs by **$100 million** over the next four years [24] - TPG is committed to investing in both wireless and fixed infrastructure to remain competitive [65] Additional Considerations - The reinvestment plan is designed to enhance liquidity and free float, with strategic shareholders supporting the initiative [7][51] - The company is optimistic about its growth trajectory despite potential challenges in subscriber growth and churn rates [49][50] Conclusion TPG Telecom is positioned for growth following the Vocus transaction, with a strong focus on capital management, shareholder returns, and operational efficiency. The company aims to enhance its market position while maintaining a commitment to customer service and infrastructure investment.

Core Viewpoint - The Hong Kong Dividend ETF (159331) announced a dividend of 0.3% for this month, with the record date on August 5 and the payment date on August 8 [1]. Group 1: Fund Performance and Investment Strategy - The Hong Kong Dividend ETF (159331) saw a net inflow of 2 million units today, indicating active investment in Hong Kong dividend assets [2]. - Huachuang Securities highlighted that high-dividend sectors in Hong Kong stocks are attractive due to their stable free cash flow generation, which supports dividend capabilities and shareholder returns [2]. - Companies with abundant free cash flow can maintain dividend performance while also enhancing return on equity (ROE) through capital expenditures, offering both defensive and growth characteristics [2]. - Traditional sectors such as banking, ports, and highways are favored for their stable earnings and dividends, especially in a low-interest-rate environment [2]. - Industrial metals benefit from inventory destocking and demand recovery, while telecom operators are experiencing accelerated free cash flow release due to maturing projects and increasing industry penetration [2]. - The valuation of Hong Kong stocks is lower compared to A-shares, and a higher proportion of foreign investment makes them more attractive for international capital allocation, particularly in a weakening dollar environment [2]. Group 2: Dividend Distribution Principles - The fund's distribution principle includes cash dividends, with the management evaluating excess returns relative to benchmarks and available distributable profits for potential distributions [4]. - The fund can distribute profits monthly if the net asset value growth exceeds the benchmark or if distributable profits are positive [4]. - The fund's dividend distribution does not require prior loss compensation, and the net asset value may fall below par after distribution [4]. - Each fund share has equal distribution rights, and any specific regulations from legal or regulatory bodies will take precedence [4].

Core Insights - Vodafone reported a 3.9% increase in total revenue for Q1 FY2026, reaching €9.4 billion, with adjusted EBITDA rising to €2.7 billion, slightly above analyst expectations [1] - The company is showing signs of stabilization in its largest market, Germany, despite previous customer losses due to intense competition and regulatory changes [1] Financial Performance - Organic service revenue in Germany declined by 3.2% to €2.7 billion ($3.2 billion), better than the anticipated decline of 4.6% [1] - Overall organic service revenue growth was 5.5%, surpassing market expectations of 4.9% [1] - Vodafone maintains its full-year profit and adjusted free cash flow guidance of €2.4 billion to €2.6 billion [1] Strategic Developments - CEO Margherita Della Valle is focused on a significant strategic transformation, including the sale of operations in Spain and Italy, and the completion of a £15 billion ($20.4 billion) merger with Three UK [1] - Vodafone is working to enhance customer service, which has lagged behind competitors [1] Market Impact - Approximately one-third of Vodafone's revenue comes from the German market, which has been negatively impacted by a new regulation banning bundled sales, leading to a near 50% reduction in TV users in residential areas [2] - Excluding the impact of the TV bundling regulation, Vodafone's revenue in Germany for Q1 was "basically stable," with a year-on-year increase in mobile service revenue [2] Mergers and Investments - The merger with Three UK resulted in the formation of VodafoneThree, now the largest operator in the UK with 28.8 million customers [2] - Vodafone plans to invest £11 billion over the next decade to develop its 5G network [2] Shareholder Returns - Following a €2 billion share buyback program, Vodafone announced a new €500 million share buyback plan [2] - Vodafone's stock price has increased by 22% this year [2]