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China Unicom (Hong Kong) Limited (CHU)

- NYSE
  • Mon, Aug. 24, 1:55 PM
    • In the wake of some "musical chairmen" today, Chinese telecoms that switched around leadership are off along with other U.S.-traded Chinese issues, though analysts are coming in with different takes on the outcome.
    • Market leader China Mobile (NYSE:CHL) is 5.3% lower on the NYSE as Jefferies Group cuts its price target to $76.13. Shares had closed on Friday at $62.87 and are currently at $59.61, implying near 28% upside from today.
    • China Telecom (NYSE:CHA) ADRs are similarly down 4.1%, to $55.95. Meanwhile, China Unicom (NYSE:CHU) is doing well in comparison, down just 2.4%, after Jefferies upgraded it to Buy, from Hold -- but with a lower price target.
    • Jefferies cut its target on CHU to $18.32, from $19.40. Shares closed Friday at $14 and are currently at $13.67, implying a 34% upside remaining from today's prices.
    • Jefferies had lowered its target on CHA to $71 on Friday. The firm maintains Buy ratings on all three of the Chinese telecoms.
    • Previously: China confirms chairman changes at its big three telecoms (Aug. 24 2015)
    | Mon, Aug. 24, 1:55 PM | Comment!
  • Mon, Aug. 24, 3:34 AM
    • Confirming a speculated shuffle at China's top telecoms, China Telecom (NYSE:CHA) and China Unicom (NYSE:CHU) have swapped out chairmen, and market leader China Mobile gets a new chairman from the government.
    • Shang Bing, a vice minister at China's government regulator, takes over as chairman at China Mobile (NYSE:CHL), replacing retiring Xi Guohua.
    • China Unicom's chairman Chang Xiaobing will head to China Telecom, and China Telecom's chairman Wang Xiaochu takes over at China Unicom.
    • Shang, taking over at China Mobile, had previously been president in his own stints at China Telecom and China Unicom.
    • It's the biggest changeover in Chinese telecom (where the big three are state-owned) in many years, though China has tended to change out the leaders of the companies every few years.
    • Previously: China preparing to shuffle leaders of its three telecoms (Aug. 21 2015)
    • Previously: China Tower venture planning $10B private placement (Jul. 20 2015)
    | Mon, Aug. 24, 3:34 AM | 3 Comments
  • Fri, Aug. 21, 1:16 PM
    • China's getting ready to shuffle the leadership at its three telecoms amid an industry revamp -- but rumors have highly variable information about what the shakeup will look like.
    • Xi Guohua, chairman of the parent of market leader China Mobile (NYSE:CHL), will retire, to be replaced by government minister Shang Bing, Bloomberg and Caijing reported -- and similar changes would come to the leadership of China Telecom (NYSE:CHA) and China Unicom (NYSE:CHU).
    • But rumors persist that China Telecom Chairman Wang Xiaochu could return to lead China Mobile (where he was previously CEO), and that Shang Bing would take over at China Telecom instead.
    • China Unicom posted earnings earlier, and its Chairman Chang Xiaobing skipped the company's press conference to head instead to an important meeting in Beijing. The company's president, Lu Yimin, said he hadn't heard any notice about changing management, and indeed China Unicom's leadership may stay intact.
    • The result, though, may be the biggest overhaul to China's telecom industry since 2008.
    • The three companies still face an October deadline for asset injection into a mobile tower holding company that will absorb all their tower assets.
    • ADRs are up in U.S. trading: CHL +1.6%; CHA +5.7%; CHU +5.7%.
    • Previously: China Mobile Limited reported 1H results on Aug. 20 (Aug. 21 2015)
    • Previously: China Telecom reported 1H results on Aug. 20 (Aug. 21 2015)
    • Previously: China Unicom reports 1H results (Aug. 21 2015)
    | Fri, Aug. 21, 1:16 PM | 1 Comment
  • Fri, Aug. 21, 11:48 AM
    • China Unicom (NYSE:CHU): EPS of RMB 0.28
    • Revenue of RMB 144.7B (-3.3% Y/Y).
    • Press Release
    | Fri, Aug. 21, 11:48 AM | Comment!
  • Fri, Jul. 31, 12:57 PM
    • China Unicom (NYSE:CHU) is up 1.4% on standard volume after HSBC upgraded shares to Hold, from Reduce.
    • Analysts' mean recommendation is inching toward a Buy. Consensus price targets are at $19.40, implying more than 37% upside from here.
    • China Unicom has had a choppy year and is down 25.8% over the past three months, but is still up 4.9% YTD.
    • Also moving today in U.S. trading: peers China Telecom (CHA +1%) and China Mobile (CHL +2.3%).
    | Fri, Jul. 31, 12:57 PM | Comment!
  • Mon, Jul. 20, 9:42 AM
    • China Tower -- the state-owned company built of the pooled wireless towers of China Mobile (CHL +0.3%), China Telecom (CHA +0.6%) and China Unicom (CHU -1.5%) -- will raise as much as 60B yuan (about $9.7B) in a private placement to outside investors, Bloomberg reports.
    • The companies will put a combined 300B yuan of assets into China Tower by the end of August.
    • It's of a piece with China encouraging private investment in state-owned industries to fight slowing growth. With the sensitive nature of telecom, though, only domestic investors may be invited to China Tower's placement.
    • With 40% of the tower venture, market leader China Mobile has the biggest stake.
    | Mon, Jul. 20, 9:42 AM | 1 Comment
  • Fri, Jul. 10, 2:15 PM
    | Fri, Jul. 10, 2:15 PM | 1 Comment
  • Tue, Jul. 7, 9:53 AM
    • A continuing rout in China is pressing the country's mobile providers.
    • In U.S. trade, China Telecom (NYSE:CHA) is off 5.6%; China Unicom (NYSE:CHU) down 4.9% and China Mobile (NYSE:CHL) down 2.9%.
    • Hong Kong's PCCW (OTCPK:PCCWY) is off 6.2% in over-the-counter trading as well.
    • The Shanghai Composite is back to a selloff despite a rash of support measures from Beijing. Several hundred companies have taken the risky move of filing for a trading halt in Shanghai and Shenzhen in an attempt to escape the downdraft.
    | Tue, Jul. 7, 9:53 AM | Comment!
  • Mon, May 18, 2:39 PM
    • After closing lower in Hong Kong, China's big three wireless carriers are down in U.S. trading, giving back Friday gains after saying they'd cut data prices and boost speeds in an effort that could push migration to 4G.
    • In the U.S., China Mobile (NYSE:CHL) is down 4.1%; China Telecom (NYSE:CHA) is down 4.1% and China Unicom (NYSE:CHU) down 3.2%.
    • The state-owned firms have gotten a push from Premier Li Keqiang to expand Internet access. Leader China Mobile will cut mobile data prices by at least 35% this year; China Unicom plans cuts of 20% or more per megabyte, and China Telecom is looking at average cuts of 30%/megabyte.
    • The move means a change in short-term revenue but could raise profits depending on the migration rate to more lucrative 4G accounts and usage.
    • Previously: China mobile infrastructure spending jumped 51% in 2014 (Apr. 21 2015)
    | Mon, May 18, 2:39 PM | Comment!
  • Tue, Apr. 21, 9:11 PM
    • Mobile infrastructure spending in China rose 51% last year, according to an Infonetics report, primed by "robust" TD-LTE deployments at wireless leader China Mobile (NYSE:CHL) and W-CDMA expansions at China Unicom (NYSE:CHU).
    • Those increases countered a significant capex cut by third competitor China Telecom (NYSE:CHA).
    • China Mobile in particular had a goal of raising TD-LTE rollouts from 150K TD-LTE eNodeBs to 500K, but ended the year with 720K in a next-gen push. The company has 60% of China's mobile subscribers.
    • The mobile operators added 58M subscribers in 2014 to push the total market to 1.3B subscribers.
    • Gains today: China Mobile (CHL) up 4.3%; China Telecom (CHA) up 1.5%; China Unicom (CHU) up 3%.
    • Previously: China telecoms: Providers gain again; Unicom adds 1.6M net subs (Apr. 21 2015)
    • Previously: Chinese wireless firms up on PBOC easing; China Mobile notes Q1 results (Apr. 20 2015)
    | Tue, Apr. 21, 9:11 PM | Comment!
  • Tue, Apr. 21, 11:16 AM
    • Chinese telecom providers are up for a second straight day following China's stimulus.
    • In U.S. trading, China Mobile (NYSE:CHL) is up 4.6%; China Telecom (NYSE:CHA) is up 1.8%; and China Unicom (NYSE:CHU) is up 3.4%.
    • China Mobile had previously jumped 7.5% in Hong Kong, while China Unicom had gained 3.6% there.
    • In March operations, China Unicom pointed to net added mobile subscribers of 1.6M to bring its total there to 294.75M; net added fixed-line broadband subscribers of 375K to bring that total to 69.6M; and a net loss in local access subscribers of 579K to bring that total down to 80.3M.
    • China Telecom signed a deal with payments platform SmartTrans to bring financial news and info to subscribers through its "Love Finance" offering, to be promoted through mobile news, texts and WAP channels. Subscribers to that product will pay 5 yuan/month.
    • Previously: Chinese wireless firms up on PBOC easing; China Mobile notes Q1 results (Apr. 20 2015)
    | Tue, Apr. 21, 11:16 AM | Comment!
  • Mon, Apr. 20, 7:35 PM
    • Chinese wireless firms jumped in U.S. trading today in reaction to new easing from China, where the central bank cut its reserve requirement ratio a percentage point to 18.5%
    • China Mobile (NYSE:CHL) gained 5.4% today and is up another 3.2% after hours; China Telecom (NYSE:CHA) closed up 4.9%; and China Unicom (NYSE:CHU) closed up 5.3% (and is up now 0.2% after hours).
    • China Unicom was among leaders among Hong Kong stocks today, trading 2.2% higher there, while China Telecom was up 2.8%.
    • China Mobile provided unaudited key indicators from its Q1, noting that while operating revenue was up 3.9% Y/Y (to 160.9B yuan) and EBITDA up 2.8% (to 59.2B yuan), net profit slipped 5.6% Y/Y to 23.8B yuan.
    • As the substitution impact of over-the-top business (including apps like Tencent's WeChat) on China Mobile's traditional business "continued to intensify, voice services and SMS and MMS services further declined," the company noted, with voice and SMS usage down 1.3% and 4.5% respectively.
    • "The Group is at a critical stage of transformation of its development," writes Chairman Xi Guohua, noting that capex and cost input continue to remain high amid heavy demand for resources from 4G construction, business development and customer retention.
    | Mon, Apr. 20, 7:35 PM | Comment!
  • Thu, Apr. 9, 10:00 PM
    • In a new report on fiber, DSL and cable broadband subscribers, Infonetics Research projects that consumers are driving global fixed broadband adoption toward a 5% compound annual growth rate through 2019, from a current base of 733M (up 8% last year).
    • Global growth will lead the way, the firm says, especially in China (Asia Pacific has 50% of the world's fixed broadband subscribers, and China Telecom (NYSE:CHA) is the worldwide share leader) -- as well as Russia, Brazil, Mexico, Arrgentina, Indonesia, Thailand and Vietnam.
    • Other insights: DSL's still the biggest technology, but growth is coming via fiber-to-the-home and DOCSIS 3.0 cable; and FTTH subscribers grew 22% last year to cross the 100M-subscriber line.
    • U.S.-traded players in the firm's report: T, BT, CHA, CHU, CHT, CMCSA, OTCQX:DTEGY, OTCPK:KDDIY, KT, NTT, ORAN, OTCQX:ROSYY, TI, TEF, OTCPK:TELNY, OTCPK:TLSNY, OTC:TMXLF, OTCPK:TLSYY, TWC, OTC:TRKNY, VZ, VIP, VOD
    | Thu, Apr. 9, 10:00 PM | 3 Comments
  • Wed, Apr. 8, 10:30 AM
    • China's mobile firms have ramped up considerably today in U.S. trading as regulators work toward transferring 1M cell towers to a state-backed joint venture among the three.
    • The transfer to China Tower -- the joint venture between China Mobile (CHL +6.5%), China Telecom (CHA +9%) and China Unicom (CHU +4.2%) -- should allow the three to book a steroidal 148B yuan ($23.9B) in one-time gains.
    • Details of the transfer are sketchy, but China's government plans to wrap it by Aug. 15.
    • China Mobile holds a 40% stake in China Tower, and China Unicom and China Telecom split the remaning 60%.
    | Wed, Apr. 8, 10:30 AM | Comment!
  • Mon, Mar. 16, 9:25 AM
    • China's leading telecom China Mobile (NYSE:CHL) is up 3.6% premarket in U.S. ADR trading after gaining 2.4% in Hong Kong following Premier Li Keqiang's comments that China is ready to print money if China's economy keeps slowing.
    • China Mobile ADRs have gained 8.4% YTD and are up 42% over the past 12 months.
    • Telecom peers: China Unicom (CHU +1.5%); China Telecom (NYSE:CHA).
    | Mon, Mar. 16, 9:25 AM | Comment!
  • Tue, Mar. 3, 1:45 PM
    • China Unicom (NYSE:CHU) is down 5.5% as it posted Q4 income that fell 26% and missed expectations, pointing to VAT reform and playing from behind on high-speed data as headwinds.
    • Q4 revenue of 69.3B yuan (down 7%) beat expectations by 2.1B yuan. EBITDA of 20.77B yuan missed expectations by 1B yuan.
    • For the full year, net profit was up 15.8% to 12.06B yuan. Net profit was 4.9% of service revenue, up from 4.4% in 2013. Full-year revenue of 244.88B yuan was up 2.6%.
    • Full-year revenue breakouts: Mobile, 155.1B yuan (up 2.6%); fixed-line, 88.5B yuan (up 2.3%).
    • The company warned that a slowdown in user growth may persist through 2015 or even reverse into a decline, and Chairman Lu Yimin again batted down speculation about a merger with China Telecom (NYSE:CHA) to keep up with clear market leader China Mobile (NYSE:CHL).
    • China Unicom has been running behind on 4G implementation, having just received its 4G LTE FDD license and playing catch-up with China Mobile (CHL), which features 100M users.
    • Previously: Merger rumors lift U.S. shares of Chinese telecoms (Feb. 12 2015)
    • Previously: Chinese telecoms jump in Hong Kong on merger rumor (Feb. 11 2015)
    | Tue, Mar. 3, 1:45 PM | Comment!
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Company Description
China Unicom (Hong Kong) Ltd though its subsidiaries, provides cellular and fixed-line voice and related value-added services, broadband and other Internet-related services, ICT services, and business and data communications services in the PRC.
Sector: Technology
Country: China