DBS: Raises China Unicom (00762.HK) target price to 12.1 Hong Kong dollars, expects cloud business to drive profit and dividend growth.

According to the Securities Times APP, DBS released a report stating that it has raised the target price for China Unicom (00762.HK) H shares from 11.1 Hong Kong dollars to 12.1 Hong Kong dollars, maintaining a "buy" rating. The bank pointed out that the company has confirmed a full-year dividend of 0.40 RMB per share last year, a year-on-year increase of 20.1%, and the dividend payout ratio has increased by 5 percentage points to 60% year-on-year. Although Unicom is the only one of the three major mainland telecommunications operators that has not committed to a dividend payout ratio, the bank expects the company to gradually increase the payout ratio to 65% next year.