＜Research＞Nomura Downgrades CHINA UNICOM (00762.HK) to Neutral and Lowers TP to $7

　　A Nomura report revealed that Nomura downgraded the H-share rating on CHINA UNICOM (00762.HK) -0.170 (-2.374%) Short selling $50.04M; Ratio 15.105% to Neutral from Buy and lowered its target price to $7 from $7.1. The broker believed CHINA UNICOM's internet business has been affected by slower economic growth, which may lead to below-industry-average service revenue growth in 2Q. It also assumed that CHINA UNICOM's expansion into government and corporate digital business may affect its account receivables, leading to bad debt risks and slower cash flow growth.

　　However, Nomura added that the company, benefiting from more stringent cost control, should be able to maintain a better net profit growth rate when compared to the low-single-digit revenue growth forecasts in 2Q. The broker reduced its revenue forecast on the company by 2%-4% and profit forecast by 4%-6% for FY24-FY26, reflecting the slower growth in its emerging business.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-18 16:25.)

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