DBS: China Unicom – Buy Target Price HK$8.70

Company Update: Catching up in network coverage and quality

• Lowered earnings by 1%/0.5%/4% for FY23/24/25, as we edged down industry internet revenue on softer enterprise spending amidst a weak macro
• Expect earnings to grow by 11%/9%/10% in FY23/24/25, respectively
• Expect its payout ratio to reach 53% in FY23, up from 50% in FY22
• Maintain BUY for attractive dividend yield of 7%; TP of HK$8.7