For Immediate Release
Chicago, IL – February 27, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include China Unicom (CHU - Free Report) , Research In Motion Limited , Apple Inc. (AAPL - Free Report) , China Mobile (CHL - Free Report) and China Telecom Corp. (CHA - Free Report) .
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: https://at.zacks.com/?id=5513
Here are highlights from Friday’s Analyst Blog:
China Unicom Adds 3G Users
China's second largest mobile operator China Unicom (CHU - Free Report) added 3.232 million subscribers in January, up 1.62% from the prior month. This takes the company’s total customer base to 202.89 million.
The company’s GSM subscriber base rose to 159.823 million with the net addition of 0.182 million customers, while its 3G subscriber base increased to 43.069 million with net addition of 3.05 million in January. China Unicom added less 3G subscribers in November compared to 3.48 million last month.
The company’s 3G business is performing well and the momentum is expected to continue well into the future. 3G remains a compelling opportunity and represents the single biggest driver of the company’s long-term growth.
We believe China Unicom will continue to make significant progress in expanding economies of scale in 3G, broadband and other businesses that will likely improve its overall revenue and profitability. The company is offering 3G services in collaboration with Research In Motion Limited’s BlackBerry phones. Additionally, the company has the exclusive right to distribute Apple Inc.’s (AAPL - Free Report) iPhone in China.
China Unicom’s 3G and fixed-line broadband businesses have been ramping up since last year. However, these businesses are expected to remain under pressure due to increasing depreciation and amortization expenses; network, operation and support expenses; as well as selling expenses for the remainder of this year. We believe these expenses will have an adverse effect on the company’s future profitability, free cash flow and margins.
Further, higher handset subsidies and increased costs related to 3G service deployments will continue to be headwinds for the company. Despite these challenges, we expect China Unicom to benefit from new users this year.
China Unicom is offering handsets at subsidized rates with lower 3G service plans for multi-year contracts to retain existing customers and add new ones. This will weigh on the company’s future overall average revenue per user. Moreover, China Unicom remains significantly challenged by aggressive nationwide 3G service rollouts by its peers China Mobile (CHL - Free Report) and China Telecom Corp. (CHA - Free Report) .
We currently have a long-term Neutral rating on China Unicom. The stock retains a Zacks #3 (Hold) Rank for the short term (1–3 months).
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: https://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: https://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at https://at.zacks.com/?id=5518.
Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339