CU 2Q18 results: revenue at Rmb74bn (-1% QoQ and 7% YoY); net profit at Rmb2.9bn (-3% QoQ, 87% YoY) (Fig 1)
ey FAQs at analyst briefing: 5G capex/ progress, industrial internet, mixedownership reform update, and 4G unlimited data plans
MGMT also denied the news of merger between CU and CT and stated that CU had no official discussions on this matter
Earnings and target price revision
Roll over to 2019E with no change in TP.
12-month price target: HK$12.00 based on a DCF methodology.
Catalyst: 3Q18 results
Action and recommendation