Zheshang Bank

China Unicom: acquisition of favorable costs improves performance significantly

17:28, November 22, 2012    Changjiang Securities

   Sina tip: This is a research report column, which is only an analyst's personal views and opinions on a stock, not a formal news report. Sina does not guarantee its authenticity and objectivity. All effective information about the stock is subject to the announcement of the Shanghai and Shenzhen Stock Exchanges. Investors are respectfully advised to pay attention to the risks.

   Changjiang Securities

   China Unicom [Weibo] The announcement said that China Unicom's operating company would acquire 100% of its equity in China Unicom New Space from China Unicom Group, and the consideration of this acquisition transaction was RMB 12.166 billion, which was paid by China Unicom's operating company in cash. The underlying asset of this transaction is China Unicom New Time and Space Company, and its main assets are the fixed network assets of China Unicom Group in 21 southern provinces and some Dahongtong assets. Before this transaction, the company leased the fixed network resources of Unicom Xinshifang in 21 southern provinces to operate the fixed network business, and paid the network lease fee to Unicom Xinshifang annually. The company's overall diluted EPS from 2012 to 2014 was raised to 0.14 yuan, 0.27 yuan and 0.51 yuan respectively, and the company's "recommended" rating was maintained.

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