Research from Quam Securities, Quam Securities

Quam Securities Research

Research from Quam Securities

Quam Securities

Since its inception in 1986, Quam Securities Limited (Quam Securities) has grown to become one of the few mid-tier securities brokerages in Hong Kong with global execution capabilities for both private and institutional clients. It boasts a well-established network in Greater China including Taiwan and in major world markets through the Global Alliance Partners (GAP). Quam Securities is well-positioned not only to harness and drive business within the China Tonghai International Financial Limited but also between China and the world markets.

Equity Bottom-Up

<ul><li>China Unicom’s 2022 results were largely in line with our expectations with decent growth in service revenue, driven by strong growth in industrial internet and stable growth in mobile revenue.</li><li>Opex inflation has been well contained with no further material acceleration in opex growth.</li><li>On the back of China’s plan for further digitization of the country, achieving technology advancement and autonomy as well as the paramount importance of data security, we expect industrial internet remains the key top-line driver and, with further deceleration in opex growth, adjusted NP to sustain double-digit growth for FY23-25.</li></ul>

China Unicom’s 2022 results were largely in line with our expectations with decent growth in service revenue, driven by strong growth in industrial internet and stable growth in mobile revenue.Opex inflation has been well contained with no further material acceleration in opex growth.On the back of China’s plan for further digitization of the country, achieving technology advancement and autonomy as well as the paramount importance of data security, we expect industrial internet remains the key top-line driver and, with further deceleration in opex growth, adjusted NP to sustain double-digit growth for FY23-25.

China Unicom (762 HK) - In-Line Results Foster Resilient Growth Trend

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<ul><li>Comba Telecom Systems (Comba) has a global customer base including major telecommunication operators such as Vodafone, Ooredoo, Airtel, Telenor, China Mobile, China Telecom, China Unicom, and other major telecommunication equipment providers.</li><li>The company owns over 5,500 patents globally, and offers a comprehensive suite of innovative products and services including base station antennas, network products and wireless transmission services.</li><li>In China, the demand for 5G base station antennas is driven by the deployment of 5G medium-frequency network and stable demand from the 3 largest telecommunication operators in China.</li></ul>

Comba Telecom Systems (Comba) has a global customer base including major telecommunication operators such as Vodafone, Ooredoo, Airtel, Telenor, China Mobile, China Telecom, China Unicom, and other major telecommunication equipment providers.The company owns over 5,500 patents globally, and offers a comprehensive suite of innovative products and services including base station antennas, network products and wireless transmission services.In China, the demand for 5G base station antennas is driven by the deployment of 5G medium-frequency network and stable demand from the 3 largest telecommunication operators in China.

Comba Telecom – Global solutions & service provider of wireless and information communications systems – Lists on SGX

<ul><li>While CU has lagged peers in its Oct 5G net adds, the company still reported resilient 5G growth.</li><li>On the back of recent supportive policy on 5G and industry internet, which has been the key revenue growth driver, as well as a new JV with Tencent, which reinforces our view that Chinese telcos are keep gatekeepers of the online world in China, we believe the growth momentum remains intact.</li><li>We have trimmed our earnings forecasts and TP (HK$6.10), which reflects both faster than expected cost increase as well as a lowered FX assumption for the RMB.</li></ul>

While CU has lagged peers in its Oct 5G net adds, the company still reported resilient 5G growth.On the back of recent supportive policy on 5G and industry internet, which has been the key revenue growth driver, as well as a new JV with Tencent, which reinforces our view that Chinese telcos are keep gatekeepers of the online world in China, we believe the growth momentum remains intact.We have trimmed our earnings forecasts and TP (HK$6.10), which reflects both faster than expected cost increase as well as a lowered FX assumption for the RMB.

China Unicom (762 HK) - Policy Support to Sustain 5G Momentum

Hong Kong

China Unicom (Hong Kong) Limited is an investment holding company that provides comprehensive telecommunications services in China. Its core businesses include mobile services such as voice, roaming, mobile broadband, and value-added services, as well as fixed-line services like broadband access and internet networks. The company also offers ICT, IoT, software development, big data, and cloud computing services. It was incorporated in Hong Kong in February 2000 and is headquartered in Central, Hong Kong.

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China Unicom (762 HK)