China United Network Communications Stock Forum

The market's previous optimism about the stock led to disappointment despite EPS improvement. The contrast between EPS growth and share price growth suggests other metrics are needed to understand changing market sentiment. The company's dividends largely explain the divergence between the TSR and share price return.

Despite a lower ROCE than the industry average, China United Network Communications' significant ROCE growth trend indicates potential profitability. A potential opportunity is present with a favorable valuation, although further research is recommended.

Given current predictions, China United Network Communications' P/E ratio suggests that most investors expect limited future growth and are willing to pay less for the stock. This perspective is reinforced by the company's underperformance forecast compared to the broader market.

1. Chinese securities regulators broaden the scope of REITs to allow companies to raise more money.
The China Securities Regulatory Commission (CSRC) will, for the first time, allow commercial real estate developers and managers to spin off their “consumption-related infrastructure assets” into a public real estate investment trust (REIT). These assets include shopping malls and department stores, which are considered mature assets...

Core points:
1. The business model of computing power realization is similar to water and electricity. Operators collect money for computing power connections and edge clouds at the same time. The computing power network is a light asset for operators because the peak period of 5G construction ended last year, and the computing power network accounts for about 20% of the entire capital expenditure.
2. With the development of ChatGPT, ther...

Unicom said that its subsidiaries, Unicom Venture Capital and Tencent Venture Capital, had recently been approved to establish new companies engaged in content distribution networks (CDN), edge computing and other businesses.
Unicom explained that CDN could become the "smart brain" of the network, to achieve the most efficient use of resources, and to help service providers optimize user experience, reduce operation and maintenance costs, the...

It is generally believed in the industry that, given the large scale of China Unicom and Tencent, it is still difficult to judge whether the new company can bring obvious benefits to both parties in terms of performance.
However, the positive signals released by the cooperation between the two sides and the imagination space in the future can stimulate investors' enthusiasm fo...

The bank believes that the cooperation with China Unicom and other state-owned enterprises makes it easier for Tencent Cloud to invest in China's IT industry assets.
Recently, it was disclosed that China Unicom and Tencent Venture Capital, a subsidiary of Tencent Cloud, have established a joint venture, which will cooperate to expand distribution networks and edge computing services. Unicom and Tencent hold 48% and 42% of th...