China Unicom's 1H Dividend Suspension Likely Weighs on Stock's Appeal
Dow Jones
Aug 19
0801 GMT - China Unicom's move to suspend dividends in 1H is likely to weigh on its stock's appeal, says DBS Group Research in commentary. The telecommunications service provider had a 0.2841 yuan dividend per share in 1H 2025, but didn't declare a dividend for the same period this year. The stock is largely held for its yield, and this likely came across as a negative surprise, the DBS analysts say. Meanwhile, its 1H profit declined 35% from a year earlier, missing market expectations, DBS adds. The dividend suspension and greater need for earnings recovery in 2H has weakened its near-term investment case, the analysts say. DBS is reviewing buy rating and 8.70 Hong Kong dollar target price. Shares plunge 13% to HK$5.475.
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