Glonghui, March 20 | UBS released a report saying that Unicom's service revenue for the fourth quarter of last year was 82.7 billion yuan, up 3.7% year-on-year, and EBITDA was 21 billion yuan, down 6.4% year-on-year, mainly due to increased employee expenses. Net profit for the fourth quarter increased by 37.3% year-on-year to $1.48 billion. The comparative base for the same period in 2022 was lower due to one-time depreciation costs. Net profit for the full year of last year increased by 11.8%, reaching the guideline's double-digit target. Capital expenditure of 73.9 billion yuan, down 0.4% from year to year, is 4% lower than the guideline level. This is a positive surprise, mainly because the company is shifting its investment focus from traditional telecommunications business to digital business, so there is less investment in the network. Unicom's capital expenditure guideline for this year is 65 billion yuan, a decrease of 12% year-on-year, which is lower than the bank's forecast. The bank adjusted Unicom's net profit forecast for this year to 2026 by 0 to 4%, lowered the capital expenditure estimate by more than 10%, and raised the target price from HK$7.3 to HK$7.5, with a “buy” rating.