[ET Net News Agency, 20 January 2020] Citi Research trimmed its target price for China
Unicom (CU)(00762) to HK$10 from HK$11 and maintained its "buy" rating.
The research house sees CU benefiting from network sharing and mixed-ownership reform.
5G network sharing with China Telcom (00728), 2G spectrum refarm and mixed-ownership
reform could help CU deliver good earnings growth.
Without network sharing, China Mobile (CM)(00941) could easily gain share from rivals,
especially from CU, with 5G network quality a major selling point. Citi expects that CU
could see continued broadband revenue decline in 2020 due to competition from CM, an
earnings downside risk for CU. (KL)