China Unicom - 2026Q1 - titanstockanalysis.com

The operational and financial summary for China Unicom (0762.HK) for the first quarter of 2026 is as follows:

Profitability under pressure: Profit attributable to equity shareholders was 4.885B RMB, a year-on-year decrease of 17.6%, indicating that traditional telecommunications businesses are facing intensified market competition and growth bottlenecks. Operating revenue was 102.8B RMB, a slight year-on-year decline of 0.5%.
Emerging businesses show momentum: Despite the pressure on traditional businesses, the company’s strategic layout in four core tracks (connectivity, computing power, services, and security) has proven effective. Notably, computing power revenue grew by 8.3% (intelligent computing center revenue grew by 11.7%), international business revenue grew by 14.9%, and security business revenue grew by 14.2%.
User base remains at scale: The number of IoT terminal connections exceeded 750 million, with a net increase of 32.03 million; the number of paying users for cloud and intelligent products exceeded 110 million.

Focusing on core tracks: The company will continue to deepen its strategic tone of pursuing integrity, innovation, and steady long-term growth. It will prioritize optimizing computing power and AI infrastructure while promoting digital solutions for government and enterprise clients to offset the pressure of declining revenue from traditional telecommunications services.
Adjustment of operating strategy: In response to tax rate adjustments and industry competition, the company is expected to continuously optimize operating efficiency, reduce low-efficiency investments, and further explore the growth potential of data centers and network security businesses.

Based on comprehensive forecasts from market research institutions and analysts, the company’s profitability expectations are as follows:

Market analysis generally predicts a compound annual growth rate (CAGR) of EPS for the next three years between 3% and 16% (market views are divided; some are conservative, while others expect higher leverage benefits from the computing power business).
In view of the profit decline in the first quarter of 2026, the market holds a cautious attitude toward earnings growth for the full year of 2026. Combining information from multiple financial data platforms, analysts expect EPS growth to show a moderate recovery trend, aiming to support the company’s long-term stable cash dividend policy.

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