Investment Rating - The report maintains a "Buy" rating for China Unicom, with a target price of 7.83 CNY [5][12]. Core Insights - China Unicom's performance in the first three quarters of 2025 showed steady growth, with total revenue reaching 293 billion CNY, a year-on-year increase of 1.0%. The net profit attributable to the parent company was 7.623 billion CNY, reflecting a year-on-year growth of 10.9% [2][12]. - The company's digital intelligence business is a strong growth driver, with significant revenue contributions from its cloud services and data center operations. The cloud segment generated 52.9 billion CNY, while the data center business achieved 21.4 billion CNY, marking an 8.9% increase year-on-year [12]. - The report highlights the solid foundation of the connectivity business, with mobile users reaching 356 million, adding 12.48 million users, and fixed broadband users reaching 129 million, adding 6.79 million users, both achieving record net additions for the same period in recent years [12]. Financial Summary - Total revenue projections for China Unicom are as follows: 372.597 billion CNY for 2023, 389.589 billion CNY for 2024, and 402.638 billion CNY for 2025, with growth rates of 5.0%, 4.6%, and 3.3% respectively [4][13]. - Net profit attributable to the parent company is projected to be 8.173 billion CNY for 2023, increasing to 9.030 billion CNY in 2024 and 9.694 billion CNY in 2025, with growth rates of 12.0%, 10.5%, and 7.4% respectively [4][13]. - The report indicates a decrease in capital expenditure by 15% year-on-year, with a focus on high-value areas such as computing power networks [12]. Market Position - China Unicom's current stock price is 5.55 CNY, with a market capitalization of 173.518 billion CNY. The stock has a price-to-book ratio of 1.01 and a dividend yield of 2.85% [6][14]. - The company has a solid financial position, with total assets of 662.845 billion CNY and total liabilities of 304.910 billion CNY, resulting in a debt-to-equity ratio of approximately 46% [13].

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]

Core Viewpoint - China Unicom plans to spin off its subsidiary, Unicom Smart Network Technology Co., Ltd., for listing on the Shenzhen Stock Exchange's Growth Enterprise Market, aiming to leverage capital markets for growth in the vehicle networking industry [1] Group 1: Company Overview - Unicom Smart Network Technology was established in August 2015 with a registered capital of 247 million yuan, focusing on vehicle networking and related technology services [1] - China Unicom indirectly holds 69.21% of Unicom Smart Network Technology, with other significant shareholders including FAW Equity Investment (11.02%), Guangzhou Yingyue Venture Capital (3.98%), and Dongfeng Asset Management (3.31%) [1] Group 2: Financial Performance - Unicom Smart Network Technology reported revenues of 437 million yuan, 574 million yuan, and 809 million yuan for the years 2020, 2021, and 2022, respectively, with net profits of 75 million yuan, 117 million yuan, and 100 million yuan [2] - In the third quarter of 2025, China Unicom achieved revenues of 92.783 billion yuan, maintaining year-on-year stability, and a net profit of 2.423 billion yuan, reflecting a 5.4% increase [2] - For the first three quarters of 2025, China Unicom's total revenue reached 292.985 billion yuan, a 1.0% year-on-year growth, with a net profit of 8.772 billion yuan, up 5.2% [2] Group 3: User Growth and New Revenue Streams - As of the third quarter of 2025, China Unicom's mobile user base reached 356 million, with a net increase of 12.48 million users, while fixed broadband users totaled 129 million, with a net increase of 6.79 million [2] - The number of IoT connections surpassed 700 million, indicating significant growth in this segment [2] - The third quarter report disclosed cloud revenue of 52.9 billion yuan, with data center revenue at 21.4 billion yuan, an 8.9% year-on-year increase [2]

Core Insights - China Unicom reported a net profit of 20 billion RMB for the first three quarters of 2025, reflecting a significant year-on-year increase of 5.1% [1][2] - The company's operating revenue reached 293 billion RMB, showing a modest growth of 1.0% year-on-year, with service revenue accounting for over 90% of total revenue [1][2] Financial Performance - Net profit attributable to equity holders increased to 20 billion RMB, with a pre-tax profit rising to 24.7 billion RMB, indicating enhanced profitability [1] - Service revenue grew to 261.6 billion RMB, marking a 1.1% increase year-on-year [1] User Growth - The total number of mobile users reached 356 million, with a net addition of 12.48 million users [1] - Fixed broadband users increased to 129 million, with a net addition of 6.79 million users, achieving the highest net growth in recent years [1] - The number of IoT connections surpassed 700 million [1] Business Structure and Growth Areas - The cloud and data center business segments emerged as key growth drivers, with cloud revenue reaching 52.9 billion RMB and data center revenue increasing by 8.9% to 21.4 billion RMB [2] - The company is focusing on deepening the integration of 5G, AI, and industrial internet, serving over 20,000 customers with 5G virtual private networks [2]

Core Insights - China Unicom reported a revenue of 293 billion yuan for the first three quarters of 2025, a year-on-year increase of 1.0%, and a net profit of 8.8 billion yuan, up 5.2% year-on-year [1] - The company is focusing on integrated innovation and expanding new productive forces, maintaining a positive momentum in operational development [1] - All three major telecom operators in China, including China Mobile and China Telecom, have shown steady growth in revenue and net profit [1] Group 1: Business Growth - China Unicom's mobile user base reached 356 million, with a net increase of 12.48 million users, while fixed broadband users reached 129 million, with a net increase of 6.79 million users [2] - The number of IoT connections surpassed 700 million, indicating a significant expansion in connectivity [2] - The company's cloud revenue reached 52.9 billion yuan, and data center revenue was 21.4 billion yuan, reflecting an 8.9% year-on-year increase [2] Group 2: Technological Advancements - China Unicom is enhancing its capabilities in next-generation internet, big data, AI, and cybersecurity, with a focus on 6G, low-altitude smart networks, and quantum technology [3] - R&D expenses increased by 5.9% year-on-year, leading to more significant achievements in technology [3] - The company is integrating 5G, AI, and industrial internet to empower various industries, with over 20,000 customers served by its 5G virtual private network [2] Group 3: Strategic Initiatives - China Unicom plans to spin off its subsidiary, Unicom Smart Network Technology Co., Ltd., for listing on the Shenzhen Stock Exchange's Growth Enterprise Market [4] - This spin-off aims to enhance the innovation and operational quality of Smart Network Technology, allowing it to leverage capital markets for growth in the vehicle networking sector [4] - The spin-off is part of China Unicom's broader strategy to optimize its industrial layout and strengthen core competitiveness [4] Group 4: Financial Performance of Subsidiary - Unicom Smart Network Technology reported revenues of 437 million yuan, 574 million yuan, and 809 million yuan for the years 2020, 2021, and 2022, respectively, with net profits of 75 million yuan, 117 million yuan, and 100 million yuan [5] - The company focuses on vehicle networking and smart transportation, aligning with national strategies for building a strong transportation and digital economy [6]

Core Viewpoint - China Unicom reported its Q3 2025 financial results, showing stable revenue growth but a notable increase in net profit, indicating resilience in a challenging market environment [1][3]. Financial Performance - For the first three quarters of 2025, China Unicom's operating revenue reached 292.99 billion yuan, a year-on-year increase of 1% [1][2]. - The net profit attributable to shareholders was 8.77 billion yuan, reflecting a growth of 5.2% year-on-year [1][2]. - The net profit excluding non-recurring items was 7.62 billion yuan, up 10.9% compared to the previous year [1][2]. - The net cash flow from operating activities was 58.36 billion yuan, showing a slight increase of 0.2% [1][2]. - In Q3 alone, the operating revenue was 92.78 billion yuan, remaining flat compared to the same period last year [1][2]. User Growth and Business Segments - As of the end of Q3 2025, China Unicom had 356 million mobile users, with a net increase of 12.48 million users [2]. - The fixed broadband user base reached 129 million, with a net increase of 6.79 million users, marking a record high for net additions in recent years [2]. - The number of IoT connections surpassed 700 million [2]. - The company's cloud revenue reached 52.9 billion yuan, while data center revenue increased by 8.9% to 21.4 billion yuan [2]. Market Comparison - The revenue growth rates for the three major telecom operators in China, including China Unicom, China Mobile, and China Telecom, have shown a slowdown, with growth nearing stagnation [3]. - Despite this, net profit and net profit excluding non-recurring items have maintained a steady growth trend across the three companies [3]. Strategic Initiatives - China Unicom announced plans to spin off its subsidiary, Unicom Smart Network Technology Co., Ltd., for a listing on the Shenzhen Stock Exchange's Growth Enterprise Market [4]. - This spin-off aims to enhance the innovation and operational quality of Unicom Smart Network, allowing it to leverage capital markets for strategic opportunities in the vehicle networking industry [4]. Market Capitalization - As of October 22, 2023, China Unicom's market capitalization stood at 173.2 billion yuan [5].

Core Insights - China Unicom reported a revenue of 293 billion yuan for the first three quarters of 2025, a year-on-year increase of 1.0%, with a total profit of 24.6 billion yuan and a net profit attributable to the parent company of 8.8 billion yuan, reflecting a 5.2% increase year-on-year [2] - The performance of the three major telecom operators, including China Mobile, China Telecom, and China Unicom, showed steady growth in both revenue and net profit, driven by strategic emerging industries such as artificial intelligence, satellite internet, data centers, and quantum technology [2] Business Growth - China Unicom's mobile user base reached 356 million, with a net increase of 12.48 million users, while fixed broadband users reached 129 million, with a net increase of 6.79 million users, marking the highest net increase in recent years [3] - The number of IoT connections exceeded 700 million, and the revenue from cloud services reached 52.9 billion yuan, with data center revenue increasing by 8.9% year-on-year to 21.4 billion yuan [3] - The company is enhancing its network capabilities through high-standard construction and efficient operations, achieving significant improvements in user experience [3] Technological Advancements - China Unicom is focusing on next-generation internet, big data, artificial intelligence, and cybersecurity, with increased investment in R&D, which grew by 5.9% year-on-year [4] - The company has received a business license for satellite mobile communication from the Ministry of Industry and Information Technology, indicating a strong commitment to advancing in cutting-edge technologies [4] Strategic Initiatives - China Unicom plans to spin off its subsidiary, Unicom Smart Network Technology Co., Ltd., for listing on the Shenzhen Stock Exchange's Growth Enterprise Market, aiming to enhance innovation and competitiveness in the vehicle networking industry [5] - This spin-off is part of a broader strategy to optimize industrial layout and strengthen core competitiveness, leveraging market opportunities for growth [5] Financial Performance of Subsidiary - Unicom Smart Network Technology reported revenues of 437 million yuan, 574 million yuan, and 809 million yuan for the years 2020, 2021, and 2022, respectively, with net profits of 75 million yuan, 117 million yuan, and 100 million yuan [6] - The subsidiary focuses on vehicle networking and smart transportation, aligning with national strategies to build a strong transportation and digital economy [6]

Core Viewpoint - China Unicom reported a net profit growth of 5.2% in the first three quarters of 2025 and plans to spin off its subsidiary, Unicom Smart Network Technology, for listing on the ChiNext board [2][7]. Financial Performance - For the first three quarters of 2025, China Unicom's operating revenue reached 292.99 billion yuan, a year-on-year increase of 1% [2][3]. - The net profit attributable to shareholders was 8.77 billion yuan, reflecting a growth of 5.2% compared to the same period last year [2][3]. - The net profit excluding non-recurring gains and losses was 7.62 billion yuan, up by 10.9% year-on-year [2][3]. - The net cash flow from operating activities was 58.36 billion yuan, showing a slight increase of 0.2% [2][3]. - In Q3 2025, the operating revenue was 92.78 billion yuan, remaining flat compared to the same period last year [3]. User Growth and Business Segments - China Unicom's mobile user base reached 356 million, with a net increase of 12.48 million users [3]. - The fixed broadband user base grew to 129 million, adding 6.79 million users [3]. - The number of IoT connections surpassed 700 million [3]. - The company's cloud revenue reached 52.9 billion yuan, while data center revenue increased by 8.9% to 21.4 billion yuan [3]. Industry Comparison - The revenue growth rate of the three major telecom operators in China has shown a slowdown, with China Unicom, China Mobile, and China Telecom reporting similar trends in their Q3 results [4]. - Despite the revenue growth slowdown, net profit and net profit excluding non-recurring items have maintained a steady growth trajectory across the three companies [4]. Spin-off Announcement - China Unicom announced plans to spin off its subsidiary, Unicom Smart Network Technology, for a listing on the ChiNext board [7]. - The spin-off is expected to enhance the innovation and operational quality of Unicom Smart Network Technology, allowing it to leverage capital markets for strategic opportunities in the vehicle networking industry [8]. - The market capitalization of China Unicom was reported at 173.2 billion yuan as of October 22 [8].

Core Insights - China Unicom reported a total revenue of 293 billion yuan for the first three quarters of 2025, reflecting a year-on-year increase of 1.0% [1] - The company's net profit attributable to the parent company reached 8.8 billion yuan, up 5.2% year-on-year [1] Group 1: User Growth and Connectivity - As of the end of Q3 2025, China Unicom's mobile user base reached 356 million, with a net increase of 12.48 million users [1] - The fixed broadband user count stood at 129 million, with a net increase of 6.79 million users, marking the highest net growth in recent years [1] - The number of IoT connections surpassed 700 million [1] Group 2: Cloud and Data Center Performance - The revenue from cloud services reached 52.9 billion yuan, indicating significant growth in the computing power business [1] - Data center revenue amounted to 21.4 billion yuan, reflecting an 8.9% year-on-year increase [1] - The company is focusing on the integration of 5G, AI, and industrial internet to enhance various industries [1] Group 3: Technological Advancements and R&D - China Unicom's total computing power exceeded 35 EFLOPS, showcasing its innovation in computing networks [2] - The company is investing in next-generation internet, big data, AI, and cybersecurity, while also expanding into 6G and satellite internet [2] - R&D expenses increased by 5.9% year-on-year, leading to more significant achievements in technology [2] Group 4: Spin-off Plans - China Unicom announced plans to spin off its subsidiary, Unicom Smart Network Technology Co., Ltd., for a listing on the Shenzhen Stock Exchange's ChiNext [2] - The spin-off aims to enhance the innovation capabilities of Smart Network Technology and improve operational quality [2] - This move is expected to help the subsidiary seize strategic opportunities in the vehicle networking industry and strengthen its market position [2]

Core Viewpoint - China Unicom reported a net profit growth of 5.2% in the first three quarters of 2025 and plans to spin off its subsidiary, Unicom Smart Network Technology, for listing on the Shenzhen Stock Exchange's Growth Enterprise Market [2][7]. Financial Performance - For the first three quarters of 2025, China Unicom's operating revenue reached CNY 292.99 billion, a year-on-year increase of 1% [2][3]. - The net profit attributable to shareholders was CNY 8.77 billion, reflecting a 5.2% year-on-year growth [2][3]. - The net profit excluding non-recurring gains and losses was CNY 7.62 billion, up 10.9% year-on-year [2][3]. - The net cash flow from operating activities was CNY 58.36 billion, showing a slight increase of 0.2% [2][3]. Quarterly Performance - In Q3 2025, the operating revenue was CNY 92.78 billion, remaining flat compared to the same period last year [3]. - The net profit for Q3 was CNY 2.42 billion, a 5.4% increase year-on-year [3]. - The net profit excluding non-recurring gains and losses for Q3 was CNY 2.04 billion, marking a 12.4% year-on-year growth [3]. User Growth and Business Segments - China Unicom's mobile user base reached 356 million, with a net increase of 12.48 million users [4]. - The fixed broadband user count reached 129 million, with a net increase of 6.79 million users, marking the highest net growth in recent years [4]. - The number of IoT connections surpassed 700 million [4]. - The revenue from cloud services reached CNY 52.9 billion, while data center revenue was CNY 21.4 billion, reflecting an 8.9% year-on-year increase [4]. Industry Comparison - The revenue growth rates for the three major telecom operators in China have shown a slowdown, with China Unicom's revenue growth at 1% for the first three quarters of 2025 [4][5]. - Despite the revenue growth slowdown, net profit and net profit excluding non-recurring items have remained stable across the three operators [4]. Spin-off Announcement - China Unicom announced plans to spin off its subsidiary, Unicom Smart Network Technology, for listing on the Shenzhen Stock Exchange's Growth Enterprise Market [7]. - The spin-off aims to enhance the innovation and operational quality of Unicom Smart Network Technology, allowing it to leverage capital markets for strategic opportunities in the vehicle networking industry [7]. Market Capitalization - As of October 22, 2025, China Unicom's market capitalization was CNY 173.2 billion [8].