China Unicom (Hong Kong) LimitedNYSE
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  • Wed, Oct. 19, 11:02 AM
    • China Unicom (NYSE:CHU) is up 2.3% in U.S. trading despite noting preliminary profits that are set to slide for the first nine months of the year as it invested to keep up with market leader China Mobile (NYSE:CHL).
    • A turnaround may be in the offing, though, as the company's heavy network investments in 4G begin to pay off with subscriber additions.
    • Preliminary net income tumbled to about 1.59B yuan (about $236M), vs. 8.18B yuan ($1.21B) in the prior year's first nine months.
    • In just September, though, the company expects record net additions of 6.05M 4G subscribers, well up from August's 5M. Overall, it added about 9.76M wireless subs, bringing its total to 262M.
    • Full earnings are set to come on Thursday.
    | Wed, Oct. 19, 11:02 AM
  • Fri, Sep. 23, 11:31 AM
    • Goldman Sachs has changed its mind on China's state-owned telecoms, and made a switch.
    • In favor now is China Unicom (CHU +0.1%), added to the firm's Conviction Buy list from a previous Neutral stance, while China Mobile (CHL -1%) gets a downgrade to Neutral.
    • China Mobile declined 0.9% in Hong Kong today, while China Unicom picked up 4.3%.
    • China Mobile, the country's 4G market leader, is having the better year -- up 10.2% YTD in U.S. trading, vs. China Unicom's gain of 1.4% -- so analyst Donald Lu sees Unicom as "glass half full" and China Mobile as "half empty."
    • Rapid data growth is tailing off at China Mobile (170% to 104% from Q1 to Q2) and is heading to 72% in 2017, Lu says, while Unicom has 4G penetration of just 30% (vs. China Mobile's 54% and China Telecom's (CHA -0.1%) 46%).
    • China Unicom also has the biggest exposure to China Tower, which Goldman estimates is worth $47B and is headed for an IPO next year. That firm owns 98% of China's telecom towers.
    | Fri, Sep. 23, 11:31 AM | 1 Comment
  • Wed, Mar. 16, 7:00 AM
    • China Unicom (NYSE:CHU): FY15 EPS of RMB0.44.
    • Revenue of RMB277.05M (-2.7% Y/Y).
    | Wed, Mar. 16, 7:00 AM
  • Wed, Jan. 13, 11:49 AM
    • China Telecom (CHA +3.8%) and China Unicom (CHU +2.6%) are both up in U.S. trading, following on gains in China, after the smaller two of China's big three telecoms formed a deal to share a 4G buildout.
    • China Telecom and China Unicom both finished today up 3.8% in Hong Kong. Market leader China Mobile (NYSE:CHL) finished up 2.5% in Hong Kong and is up 1.5% in U.S. trading.
    • Worried that China Mobile is too big, the two smaller telecoms set a five-point future cooperation agreement, with the key being a potentially expensive rural build of the 4G network -- short of a merger that the new deal likely tables.
    • “Capex savings of 30-40% of the shared rural 4G network is possible (versus building alone) and related opex savings likely closer to 50%," says Bernstein Research's Chris Lane. Specifically, 19.1B yuan ($2.9B) and 18.6B yuan ($2.8B) in capex savings for China Telecom and China Unicom over the next five years.
    | Wed, Jan. 13, 11:49 AM | 2 Comments
  • Dec. 17, 2015, 6:10 PM
    • China Unicom (CHU -0.8%) has joined with Internet-of-Things specialist Jasper to target the connected car market.
    • The two are launching China Unicom Smart Connection, a venture that will provide for auto manufacturers to have a single provider to enter China's connected car market.
    • The solution -- available today -- is an end-to-end service and operations platform built on Jasper's China Unicom Control Center. China Unicom says it will promise rapid time-to-market for automakers.
    | Dec. 17, 2015, 6:10 PM
  • Nov. 5, 2015, 9:39 PM
    • Market-leading Chinese telecom China Mobile (NYSE:CHL) is down 1.6% in Hong Kong Friday morning after a report in China's 21st Century Business Herald drops the rumor that its smaller rivals, China Telecom (NYSE:CHA) and China Unicom (NYSE:CHU), are set to share 4G base stations.
    • The smaller firms have a correspondingly smaller 4G base as China Mobile has made more inroads there. China Mobile has close to 250M 4G subscribers. China Telecom has fewer than 40M, and China Unicom (which doesn't specify its numbers) is targeting 100M by year-end.
    • Last month, Deutsche Bank noted that ""ARPU improvement has been elusive for CU due to its slower 4G ramp up vs. the peers and the flight to quality that seems to have occurred for users."
    • China Telecom is down 0.5% in Hong Kong, while China Unicom is down 0.4%.
    • Previously: China Mobile misses in Q3 despite rising earnings (Oct. 20 2015)
    • Previously: Chinese telecoms may gain if deregulation accelerates (Oct. 15 2015)
    | Nov. 5, 2015, 9:39 PM | 1 Comment
  • Oct. 23, 2015, 1:12 PM
    • China Unicom (NYSE:CHU) is another 1.2% lower in U.S. trading today after a Deutsche Bank downgrade following earnings where it lost subscribers and revenues and profits fell.
    • The firm cut China Unicom to Hold and reduced its price target to 11 Hong Kong dollars. Shares closed in Hong Kong down 1.2% to HK$9.84.
    • For the nine months, earnings dropped 22.6% on total service revenue that was down 3.8%; part of that fall was mobile service revenue that had dropped 8%.
    • While the 2Q mobile ARPU showed an improving trend, this did not continue into 3Q which saw ARPU decline 1% Q/Q," the analysts said. "ARPU improvement has been elusive for CU due to its slower 4G ramp up vs. the peers and the flight to quality that seems to have occurred for users. Looking forward opex will rise, so lifting ARPU is the key.
    | Oct. 23, 2015, 1:12 PM | 1 Comment
  • Oct. 22, 2015, 9:55 AM
    • China Unicom (NYSE:CHU) is off 2.4% as it continued to see mobile subscribers fall off, and revenues declined, leading to a 22.6% drop in profits.
    • For the nine months ended in September, mobile service revenues of 109.5B yuan were down 8%, while fixed service revenue picked up 3.4% to 69.2B yuan; overall, total service revenue was down 3.8%.
    • EBITDA still gained on reduced costs, to 74.2B yuan from 74B yuan.
    • Mobile subscribers came to 287.6M, a net loss of 287,000 subs; of those, 172.5M were mobile broadband subscribers, up 4.8M. Fixed-line broadband subs came to 71.7M, a net gain of 158,000; local access subs of 76.5M were down 925,000.
    | Oct. 22, 2015, 9:55 AM
  • Oct. 15, 2015, 8:38 PM
    | Oct. 15, 2015, 8:38 PM
  • Oct. 15, 2015, 9:13 AM
    | Oct. 15, 2015, 9:13 AM
  • Oct. 14, 2015, 9:49 AM
    • Following earlier moves (and moves yesterday) in Hong Kong, the big three Chinese telecoms are up in U.S. trading after a reorg saw China following through on putting 231.4B yuan (about $36B) of infrastructure into a towers spinoff.
    • As expected, China Tower Corp. will be 38% owned by China Mobile (CHL +1.4%), and China Unicom (CHU +6.5%) and China Telecom (CHA +3.8%) will have about 28.1% and 27.8% respectively.
    • China Reform Holdings will own about 6%.
    • The move should help overhaul a bloated state sector as it cuts redundancy among assets and helps build out better and faster networks -- including building a network of electric car charging stations, Bloomberg said.
    • Earlier in Hong Kong, China Mobile finished down 1.6%; China Unicom up 0.4%; and China Telecom up 1%.
    • Previously: China Unicom may have most to gain from planned towers spinoff (Oct. 13 2015)
    • Previously: China telecoms up on reports of investment in China Tower venture (Oct. 12 2015)
    | Oct. 14, 2015, 9:49 AM | 1 Comment
  • Oct. 14, 2015, 9:13 AM
    | Oct. 14, 2015, 9:13 AM | 11 Comments
  • Oct. 13, 2015, 10:08 AM
    • A second day of rallies got started for Chinese telecom firms after news that China Reform Holdings would put more than 10B yuan into the big three's towers spinoff.
    • Market leader China Mobile (CHL -0.6%) ended up in negative territory in Hong Kong, however, closing down 0.6%. China Telecom (CHA +2%) closed up 1.5%, while China Unicom (CHU +2.6%) closed up 4.1%.
    • China Unicom has the most to gain from tower reform, with the largest number of towers on a market-cap basis. China Unicom has 190,000 towers and a $33B market cap, while China Telecom has 125,000 towers with a $42.6B capitalization, and China Mobile has 450,000 towers with its $246B capitalization.
    • China Unicom could gain 23% off of the tower spinoff, says Nomura's Leping Huang: "Assuming China Reform takes a 6% stake, and CM/CU/CT maintain their 40:30:30 shareholding ratio, we estimate their stake in TowerCo is around 23% of CU’s current market cap, 18% of CT’s market cap and 4% of CM’s market cap, respectively."
    • Previously: China telecoms up on reports of investment in China Tower venture (Oct. 12 2015)
    | Oct. 13, 2015, 10:08 AM | 1 Comment
  • Oct. 12, 2015, 9:34 AM
    • China's big three telecoms have opened higher now that a spinoff of their tower assets is now more likely by the end of the month, amid reports that China Reform Holdings will inject more than 10B yuan ($1.58B) into the towers venture.
    • China Tower, the planned venture, would give China Reform Holdings a 6% stake in return for the investment. China Mobile (CHL +1.3%), China Unicom (CHU +5.1%) and China Telecom (CHA +3.6%) plan to take proportional stakes of 38%, 28.1% and 27.8% respectively.
    • Shares of the three moved up on heavy volume in Hong Kong: China Mobile +1.4%, China Unicom +5.7%, and China Telecom +4.2%. (via Barron's Asia)
    | Oct. 12, 2015, 9:34 AM | 1 Comment
  • Sep. 23, 2015, 1:09 PM
    • Chinese handset maker Xiaomi has launched its MVNO wireless service, which it's calling Mi Mobile.
    • As with other mobile virtual network operators, the company aims to simplify branding and consumer offerings while traveling on other companies' networks. In Xiaomi's case, it's using the 2G, 3G and 4G networks of China Telecom (NYSE:CHA) and China Unicom (NYSE:CHU).
    • Mi Mobile is marketing two SIM-only plans: one that charges 0.10 yuan per voice minute/SMS/MB, or an add-on that comes with 3 GB of data for 59 yuan/month ($9.24/month).
    • Xiaomi is out in front of a host of competitors (including Lenovo, Foxconn, Youku Tudou and Hisense) setting up MVNOs as China encourages competition for the state-owned telecoms.
    | Sep. 23, 2015, 1:09 PM
  • Sep. 21, 2015, 9:44 AM
    • Market leader China Mobile (CHL +2.7%) led mobile subscriber adds among the big three Chinese wireless firms for August, while China Unicom (CHU +0.8%) shed subs in a few areas as the month's customer numbers came in.
    • China Mobile added 1.3M net subscribers for mobile, to hit 820.1M customers, and its 4G base grew to 229.2M subs from 208.8M, while 3G customers fell to 202.6M from 209.8M.
    • Unicom lost 556,000 mobile subs to end up with 287.8M in August. The company lost 278,000 local access subs to end August with 77.4M. Mobile broadband users grew, though, by 4.7M subs to 167.6M, and fixed broadband grew by 478,000 to 71.53M.
    • Meanwhile, China Telecom (CHA +1.2%) added 900,000 mobile subs to end the month with 193.1M. It also grew fixed broadband slightly, to 110.5M accesses from 110M, and fixed telephony shrank slightly, to 137.6M lines in services from the previous 138.4M.
    | Sep. 21, 2015, 9:44 AM | 4 Comments