China Unicom Earnings: Remains Our Top Pick in the China Telco Space Following Solid Performance

Despite its share price increase over the past six months, in our view, no-moat China Unicom continues to be undervalued after reporting another strong first-quarter 2023 result. First-quarter services revenue was up 6.1% year on year, EBITDA up 2.8% year on year, and reported net profit was up 11.2% year on year. Despite these strong results, the stock still only trades on a 12-month forward price/earnings ratio of 8.7 times and an enterprise value/EBITDA multiple of 1.1 times using PitchBook consensus estimates.