[ET Net News Agency, 3 August 2020] Nomura lowered its target price for China Unicom
(CU)(00762) to HK$4.7 from HK$4.8 and maintained its "neutral" rating.
With the progressive economic recovery in China, the research house thinks CU should see
the sequential improvement in 2Q, with 5.2% and 18% growth in service revenue and
earnings, respectively, or 3.7% and 1% service revenue and earnings growth in 1H.
However, CU still faces challenges in terms of execution risks of its "co-build
co-share" plan with China Telecom (CT)(00728), as well as high 5G operating costs in the
current stage.
HSBC slightly raised its 2020-22 revenue and earnings forecasts by 0-1% and 0-2% to
reflect a faster-than-expected business recovery from COVID-19. (KL)