Zhixin Finance APP learned that Citibank released a research report stating that China United Network Communications (00762) third-quarter performance met expectations, with service revenue and total revenue increasing by 2% and 3.3% year-on-year respectively, roughly in line with market expectations; net profit increased by 7.9% year-on-year to 5.2 billion yuan (RMB). The target price for China United Network Communications is 6.9 Hong Kong dollars, rated as 'buy'.

The bank mentioned that in the third quarter, China United Network Communications added about 5 million mobile contract users quarter-on-quarter, reaching 0.345 billion users; the 5G penetration rate increased from 80% in the previous quarter to 83%. Cloud service revenue in the first nine months increased by 19.5% year-on-year to 43.9 billion yuan; datacenter revenue increased by 6.8% year-on-year to 19.7 billion yuan. The bank predicts that a change in depreciation policy may have a positive impact on the profit growth of China United Network Communications, expected to maintain double-digit growth this year and the market is expected to revise upwards its forecast for China United Network Communications.