- CHINA UNICOM (HONG KONG) LTD's earnings per share declined by 12.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CHINA UNICOM (HONG KONG) LTD increased its bottom line by earning $0.71 versus $0.47 in the prior year. This year, the market expects an improvement in earnings ($0.84 versus $0.71).
- The debt-to-equity ratio is somewhat low, currently at 0.61, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.15 is very weak and demonstrates a lack of ability to pay short-term obligations.
- CHU, with its decline in revenue, slightly underperformed the industry average of 1.4%. Since the same quarter one year prior, revenues slightly dropped by 2.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Net operating cash flow has declined marginally to $3,798.52 million or 5.37% when compared to the same quarter last year. Despite a decrease in cash flow CHINA UNICOM (HONG KONG) LTD is still fairing well by exceeding its industry average cash flow growth rate of -21.96%.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Diversified Telecommunication Services industry average. The net income has decreased by 2.4% when compared to the same quarter one year ago, dropping from $560.57 million to $547.07 million.
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. The Technology sector as a whole closed the day down 1.9% versus the S&P 500, which was down 0.1%. Laggards within the Technology sector included Maxcom Telecomunicaciones SAB de CV ( MXT), down 3.5%, Sajan ( SAJA), down 3.3%, Bio-Rad Laboratories ( BIO.B), down 2.1%, GRAVITY ( GRVY), down 5.8% and Electro-Sensors ( ELSE), down 3.1%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today: China Unicom (Hong Kong ( CHU) is one of the companies that pushed the Technology sector lower today. China Unicom (Hong Kong was down $0.30 (1.7%) to $17.49 on light volume. Throughout the day, 245,131 shares of China Unicom (Hong Kong exchanged hands as compared to its average daily volume of 396,400 shares. The stock ranged in price between $17.47-$17.64 after having opened the day at $17.62 as compared to the previous trading day's close of $17.79. China Unicom (Hong Kong) Limited, an investment holding company, provides cellular and fixed-line voice, broadband and other Internet-related, information communications technology, and business and data communications services in China. China Unicom (Hong Kong has a market cap of $41.8 billion and is part of the telecommunications industry. Shares are up 18.1% year-to-date as of the close of trading on Friday. Currently there are 2 analysts who rate China Unicom (Hong Kong a buy, no analysts rate it a sell, and 1 rates it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates China Unicom (Hong Kong as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins. Highlights from TheStreet Ratings analysis on CHU go as follows: