Goldman Sachs: Lowering China Unicom's H share target price to 10 Hong Kong dollars, and lowering EBITDA and net profit forecasts.

Goldman Sachs released a report stating that China Unicom's pre-tax profit in the first quarter was 26.6 billion yuan, which roughly met the bank's expectations. Net profit was 5.6 billion yuan, 7% lower than the bank's expectations, mainly due to lower-than-expected non-operating income and higher-than-expected depreciation expenses. During the period, cloud business revenue increased by 18% year-on-year to 19.7 billion yuan, and IDC revenue increased by 8.8% year-on-year to 7.2 billion yuan. The bank lowered its forecast for the company's EBITDA profit margin and revised upwards the EBITDA and net profit forecast for the company from this year to 2027 by up to 1.6% and up to 6%, respectively. The target price for China Unicom's H shares was lowered from 10.5 Hong Kong dollars to 10 Hong Kong dollars, with a 2026 enterprise value multiple of 2.5 times, lower than the original target of 2.6 times, with a "buy" rating maintained.