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China United Network Communications Limited (600050) Fair Value & Analysis

Communication Services · CN · Market cap 131B CNY

CU China United Network Communications Limited 600050 · SHG
Price¥4.38
Fair Value¥6.42
Upside+46.6%
Quality46/100
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Healthy Growth
Thin margins · 2.2% net margin
Low debt · generates free cash flow
4.00% dividend yield
Mixed vs. peers (8/15)
Narrow moat 28/100
Evidence: Medium Range ¥4.82 – ¥8.03 Share as image

Fair value as of: Jul 12, 2026

From 26 valuation models · updated 26 days ago

Share price +8.1% over the past month.

Below-average quality, screening 47% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (¥4.82). The market is more pessimistic than our downside scenario.
  • Solid quality (46/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

¥6.82 ¥3.22 Fair Value ¥6.42 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range ¥3.22 – ¥6.82 · fair‑value band ¥4.82 – ¥8.03 · the ¥4.38 price screens below the ¥6.42 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

China United Network Communications Limited (600050) currently trades at ¥4.38, while our model-based Fair Value estimate is ¥6.42, implying the stock looks roughly 46.6% undervalued today. We read business quality at 46/100 (below-average quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, China United Network Communications Limited generated revenue of 392B CNY at a net margin of 2.2%. Revenue declined 0.5% year over year. It earns a return on equity of 5.2%. Net debt stands at 19.5B CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥4.82 (bear case) to ¥8.03 (bull case); at ¥4.38, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 26% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 32% fair-value upside, at 47%, 600050 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ¥9.64 ¥13.99 ¥20.26 80
Residual Income ¥4.23 ¥4.36 ¥4.32 76
Rev-Margin DCF ¥7.93 ¥11.94 ¥16.60 74
All 26 models by family
DCF Models
FCF DCF ¥9.50 ¥14.44 ¥22.03 38
Owner Earnings ¥6.41 ¥9.60 ¥14.49 31
5Y Revenue Exit ¥7.93 ¥11.90 ¥16.94 39
5Y EBITDA Exit ¥21.33 ¥37.11 ¥55.75 41
5Y P/E Exit ¥6.38 ¥8.99 ¥11.68 38
10Y Revenue Exit ¥8.21 ¥11.99 ¥17.01 36
10Y EBITDA Exit ¥16.98 ¥29.53 ¥46.76 37
10Y P/E Exit ¥7.42 ¥9.96 ¥12.97 35
Earnings-Based
Graham-Dodd ¥1.99 ¥6.33 ¥8.43 54
Lynch FV ¥1.40 ¥1.99 ¥2.59 50
PEG = 1.0 ¥1.40 ¥1.99 ¥2.59 46
EPV ¥6.32 ¥7.23 ¥8.04 59
Dividend Discount
Gordon GGM ¥4.21 ¥8.74 ¥13.87 70
DDM Multi-Stage ¥4.21 ¥7.03 ¥9.18 61
Multiples
P/E Multiple ¥4.38 ¥5.84 ¥7.30 63
P/S Multiple ¥3.72 ¥4.96 ¥6.20 58
P/B Multiple ¥3.72 ¥4.96 ¥6.20 55
EV/EBIT ¥10.56 ¥13.81 ¥17.06 53
EV/EBITDA ¥30.88 ¥40.90 ¥50.93 54
EV/Revenue ¥7.39 ¥10.20 ¥13.02 43
Asset-Based
NCAV (Graham) ¥2.70 ¥3.61 ¥5.39 50
Growth DCF
Growth DCF ¥9.64 ¥13.99 ¥20.26 80
Rev-Margin DCF ¥7.93 ¥11.94 ¥16.60 74
Economic Profit
Residual Income ¥4.23 ¥4.36 ¥4.32 76
ROIC Compounder ¥6.55 ¥8.13 ¥10.12 72
Growth Earnings
Growth-Adj P/E ¥3.67 ¥5.24 ¥6.82 68

Widest divergence: Growth DCF (¥11.94) versus Earnings-Based (¥1.99). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 392B CNY
Revenue growth (YoY) -0.5%
Net margin 2.2%
Return on equity 5.2%
Free cash flow 23.8B CNY FY2025
P/E ratio 15.0
More key figures
Operating margin 3.8%
EPS (TTM) ¥0.2800
Dividend yield 3.8%
EPS growth (YoY) -18.1%
Net debt 19.5B CNY FY2025

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 50 · Market factors (momentum, volatility) 40

Profitability 28
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 55
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 65
Disciplined investing over empire-building
Low Volatility 88
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 17
Distance to the 52-week high (market factor)
Net Issuance 65
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

China United Network Communications Limited, together with its subsidiaries, provides telecommunication services in the People's Republic of China.

Full company description

China United Network Communications Limited, together with its subsidiaries, provides telecommunication services in the People's Republic of China. It offers broadband and mobile data services; value-added services, including text messaging, ringback tone, personalized ringback tone, caller ID, and secretarial services; and data and other internet application services, such as internet data centers, cloud computing, big data, Internet of Things, information, and communications services. It also sells communication terminals and communication products, including mobile phones and communications equipment. The company was founded in 2001 and is headquartered in Beijing, the People's Republic of China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China United Network Communications Limited reported revenue of ¥392B in FY2025 versus ¥328B in FY2021, a compound +4.6%/yr. Reported net income was ¥9.1B in FY2025, compounding +9.7%/yr from FY2021.

Growth Quality 64/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
392B CNY
Latest YoY
+0.7%
Avg. growth/yr (3Y)
+3.4%
Avg. growth/yr (5Y)
+5.2%
Avg. growth/yr (26Y)
+13.4%
Revenue +4.6%/yr
FY21 ¥328B
FY22 ¥355B
FY23 ¥373B
FY24 ¥390B
FY25 ¥392B
Net income +9.7%/yr
FY21 ¥6.3B
FY22 ¥7.3B
FY23 ¥8.2B
FY24 ¥9.0B
FY25 ¥9.1B

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Cite: Fair Value Calculator (2026). "China United Network Communications Limited Fair Value". https://www.fairvalue-calculator.com/stock/600050

Peer Group

Telecom Services · 252 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 46 · Below median
Fair Value upside +47% · Top 25%
Return on equity (TTM) 5% · Below median
Return on assets 1% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 4% · Below median
Revenue growth -1% · Below median
Dividend yield (TTM) 4.0% · Above median
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 15.0× · Cheaper than median
P/B 0.78× · Cheaper than median
P/S (TTM) 0.34× · Cheaper than 75% of peers
P/FCF 0.8× · Cheaper than median
EV/EBITDA 1.5× · Cheaper than 75% of peers
PEG 1.83× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 95 · sector 29
FUTURE 0 · sector 15
PAST 21 · sector 28
HEALTH 99 · sector 89
DIVIDEND 80 · sector 73

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥89.98 ¥109.88 +22%
T-Mobile US, Inc TMUS $187.61 $172.67 -8%
Bharti Airtel Limited BHARTIARTL ₹1,922 ₹941.55 -51%
China Telecom Corporation 601728 ¥6.01 ¥8.36 +39%
América Móvil, S.A. AMXB 23.07 MXN 30.35 MXN +32%
Vodafone Group VODN 259.50 MXN 507.27 MXN +95%
Advanced Info Service Public Company ADVANC 379.00 THB 286.77 THB -24%
Chunghwa Telecom Co 2412 133.50 TWD 100.00 TWD -25%
China Unicom (Hong Kong) Limited 0762 HK$6.50 HK$13.03 +100%
Telefónica, S.A TEFN 75.67 MXN 111.01 MXN +47%

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Frequently asked questions

Is China United Network Communications Limited (600050) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥6.42 versus a price of ¥4.38, about +47% (undervalued).
What is the fair value of 600050?
Our model-based fair value for China United Network Communications Limited is ¥6.42 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥4.38.
What is the quality score of 600050?
China United Network Communications Limited has a Quality Score of 46/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of China United Network Communications Limited (600050)?
China United Network Communications Limited reported trailing-twelve-month revenue of about 392B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 600050?
The net profit margin of China United Network Communications Limited is about 2.2%, meaning it keeps roughly 2.2% of revenue as net income. Based on the latest reported figures.
Does China United Network Communications Limited pay a dividend?
China United Network Communications Limited currently shows a dividend yield of about 3.81% relative to its recent price (as of Jul 12, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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