STOCKS | DBS Maintains Buy Rating on China Unicom, Cuts Target Price to HK$8

According to Jin10, DBS Group Research said China Unicom (00762.HK) reported net profit of 9.5 billion yuan in the first half of this year, down 34.6% year on year and 26% below market expectations, and cut its 2026-2028 earnings forecasts by about 6.2%, 8.9%, and 11.1%, respectively. The report said China Unicom's target price was lowered from HK$8.7 to HK$8, while the buy rating was maintained. It also said the company expects shareholder returns to normalize again, and kept its forecast that the payout ratio will stay above 65%, implying a dividend yield of about 7.9%. China Unicom management said the suspension of interim dividends was a one-off arrangement because capital expenditure was brought forward, while the full-year capex guidance remained unchanged at about 50 billion yuan. First-half capital expenditure was 24.1 billion yuan, accounting for about 48% of the full-year budget.