Macquarie Research said it is positive on China Unicom (00762) and sees signals showing a business rebound, after the company released its April subscribers data.
The signals include 4G strong expansion: 4G subs monthly net adds were 5.8m on
average in Jan-Apr, stronger than the monthly avg of 5.0m in 2016, Mobile subs continue to upgrade: 4G subs were 48% of total mobile subs in April, vs. 40% in 2016, and Fixed-line Broadband subs monthly net adds were 0.4m on average in Jan-Apr, stronger than the monthly avg of 0.2m in 2016.
The research house expects the mixed-ownership reform to also fuel up China Unicom's fixed-line business given potential synergies brought by the non-SOE new shareholders, such as IoT, Cloud Computing, Internet Finance, Smart Family, IPTV, etc.
Macquarie maintained its target price of HK$13 and a rating of "outperform" for the stock.
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