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China Unicom (Hong Kong) Limited (0762.HK) Upcoming Industry Trend, Undervalued + Long-Term Growth

China Unicom (Hong Kong) Limited (0762.HK) Upcoming Industry Trend, Undervalued + Long-Term Growth

China Unicom
Ticker: 0762.HK
Price: HKD 4.39

China’s telecommunications industry saw steady growth in the first five months of this year, data showed.

The combined industrial revenue reached 574.1 billion yuan ($81 billion) during the period, up 2.8% year-on-year, according to the Ministry of industry and information Technology.

Revenue from fixed-line communications of the three telecom giants — China telecom, China Mobile and China Unicom — totaled 196.5 billion yuan in the period, rising 12.2 % from last year.

By the end of last month, the number of mobile phone users rose 0.2% year-on-year to about 1.6 billion, including 1.28 billion 4G subscribers.

The data additionally showed that the number of fixed broadband internet users in China grew steadily throughout the period, with 86.1% of the subscribers’ internet speed reaching over 100 Mbps.

Business Summary

China Unicom (Hong Kong) Limited is a Hong Kong-based investment holding company principally engaged in the provision of telecommunications services.

The Company’s businesses include mobile businesses, fixed-line businesses and others.

Its mobile businesses include the provision of call services, roaming services, mobile broadband services, traditional value-added services such as short message services, multimedia message services and wireless Internet access card, as well as new value-added services such as mobile music, mobile television and Wo portal services.

Its fixed-line businesses include broadband and Internet networks businesses, among others. The Company’s subsidiaries include CUCL, China Unicom Global Limited and China Unicom (Europe) Operations Limited.

Shayne Heffernan Trade Idea

“Our current price target of China Unicom will come in around HKD 7.09 which will give the stock a price increase of +61.50%.”

Price Performance

Relative Valuation

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 4.71.

The projected lower bound is: 4.04.

The projected closing price is: 4.37.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 6 black candles for a net of 3 black candles. During the past 50 bars, there have been 18 white candles and 28 black candles for a net of 10 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 69.6969. This is not an overbought or oversold reading. The last signal was a buy 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 43.44. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 60 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -46. This is not a topping or bottoming area. The last signal was a buy 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 1 period(s) ago.

Rex Takasugi – TD Profile

CHINA UNICOM closed down -0.060 at 4.390. Volume was 69% below average (consolidating) and Bollinger Bands were 65% narrower than normal.

Open    High     Low     Close     Volume
4.440   4.440    4.370   4.390     15,854,500
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bearish
Long Term:         Bearish
Moving Averages: 10-period      50-period       200-period
Close:           4.43           4.73            6.43
Volatility:      40             45              47
Volume:          38,744,168     50,142,104      40,486,456

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

CHINA UNICOM is currently 31.7% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.

Our volume indicators reflect volume flowing into and out of 0762.HK at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on 0762.HK and have had this outlook for the last 24 periods.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of the Hong Kong Stock Market.

Trading and investing carries a HIGH LEVEL OF RISK, you could lose some or all of your investment. Trading commodities or any other financial instrument may not be suitable for all traders. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. We accept no liability for any losses or damages you may incur—this means that you alone are responsible for your actions in any trading or investing activities.

Sources:
China Unicom Company Website
Thomson Reuters Metastock and Eikon financial tools

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