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China Unicom (Hong Kong) Limited (CHU)

- NYSE
  • 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)
    | 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)
    | 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)
    | 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.
    | Comment!
  • 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%.
    | 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).
    | 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)
    | Comment!
  • Thu, Feb. 12, 12:15 PM
    • Building on last night's report about merger chatter, Chinese telecoms marked gains similar to those in Hong Kong with their ADRs on the NYSE.
    • Leader China Mobile (NYSE:CHL) is up 2.9%; China Unicom (NYSE:CHU) is up 4.2% and China Telecom (NYSE:CHA) +2.9% on the rumor that the two would merge to better compete with China Mobile.
    • China Telecom says it isn't aware of any plan to merge with China Unicom.
    • All three finished the Hong Kong market day on heavy volume with China Mobile up 3.9%; China Unicom up 4.3%, and China Telecom up 2.9% (on near quadruple volume).
    | 1 Comment
  • Wed, Feb. 4, 2:05 PM
    • In a fresh monetary easing move, the PBOC has cut its reserve requirement ratio for banks by 50 bps to 19.5%, its first cut since 2012. Many Chinese Internet and mobile stocks are posting healthy gains on a day the Nasdaq is near breakeven.
    • Carriers China Mobile (CHL +2.3%), China Unicom (CHU +4.5%), and China Telecom (CHA +1.9%) are among the gainers. As are online retailers Vipshop (VIPS +4%) and Dangdang (DANG +5.1%).
    • Other notable gainers include online video giant Youku (YOKU +3.9%), mobile game publishers Sky-mobi (MOBI +7.8%) and China Mobile Games (CMGE +2.6%), chat app/social network owner Momo (MOMO +4.1%), microblogging leader Weibo (WB +2.7%), online/mobile game developer NetEase (NTES +2.4%), online classifieds leader 58.com (WUBA +2.3%), and #2 online travel agency Qunar (QUNR +3.4%).
    • ETFs: KWEB, CQQQ, QQQC
    • Previously covered: SouFun, E-House
    | 8 Comments
  • Wed, Feb. 4, 10:32 AM
    • A pair of technology updates from China Unicom (NYSE:CHU): First, CHU and partner Huawei completed what they say is the first uplink carrier aggregation test with a 180% uplink rate increase.
    • Uplink CA is a technology that is LTE-Advanced and which should be a boon to high-bandwidth applications such as telemedicine, video and picture/video sharing.
    • The two also deployed Huawei's Atom Router (claimed to be the world's smallest) to commercial use for the first time.
    • Shares of CHU +4.8% on strong volume so far.
    | Comment!
  • Dec. 1, 2014, 10:38 AM
    • Chinese Internet  and telecom names are among the biggest tech decliners as the Nasdaq registers a 0.9% drop. A soft November PMI print isn't helping.
    • Giants Alibaba (BABA -4.3%) and Baidu (BIDU -2.8%) are among the casualties. As is Qunar (QUNR -5.8%), which reports after the bell.
    • Other Internet decliners: BITA -12%. QIHU -4.4%. CTRP -4.3%SFUN -7.2%. LEJU -7.5%. RENN -6.3%. SINA -3.8%. WB -3%. YY -3.9%. VIPS -3.8%. SOHU -3.5%. MOBI -4.3%. CMGE -8.6%.
    • Telecom decliners: CHL -3.6%. CHU -3.9%. CHA -4%.
    • ETFs: KWEB, CQQQ, QQQC
    | 5 Comments
  • Nov. 21, 2014, 9:31 AM
    • Chinese regulators have granted Youku (YOKU +2.5%) a license to provide mobile services as an MVNO. A reseller deal has been reached with #2 local carrier China Unicom (CHU +3.7%).
    • Youku asserts becoming an MVNO will allow it to "add more customer behavioral data to its existing big data of users' content consumption behavior, and expand its reach beyond its current mix of customers as an online video service provider."
    • Youku now gets over 60% of its video traffic from mobile. However, mobile's share of ad revenue is still only about half that figure.
    • Youku and Unicom have joined many other Chinese companies in opening sharply higher.
    | Comment!
  • Oct. 24, 2014, 10:42 AM
    • A Chinese paper reports China Unicom (CHU +0.9%) and China Telecom (CHA +1%) plan to launch (through a JV) a local content delivery network. The JV, which would aim to profit from China's rapid mobile data and online video traffic growth, would be run by CHA's cloud services unit.
    • Leading Chinese CDN owner ChinaCache (CCIH -5.1%) isn't responding well to the news, which comes two weeks after CHA announced a CDN partnership with Akamai. Alibaba launched its own CDN services last year.
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  • Apr. 30, 2014, 9:11 AM
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  • Dec. 10, 2013, 9:54 AM
    • China Mobile (CHL -1.5%) and China Unicom (CHU -1.4%) have been cut to Equal Weight by Barclays. BofA/Merrill tried to temper iPhone expectations for CHL earlier this morning.
    • Zulilly (ZU -1.8%) has received four neutral ratings to go with just one bullish one (from William Blair) on underwriter coverage day.
    • Top Image Systems (TISA +4.8%) has been started at Buy by Benchmark.
    • Nova Measuring (NVMI +2.8%) has been started at Buy by Canaccord.
    | Comment!
  • Oct. 3, 2013, 9:15 AM
    | 6 Comments
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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