DBS says China Unicom’s H1 net profit fell 34.6% YoY to RMB9.5bn, about 26% below market expectations, driven by VAT reclassification and employee benefits rising >19% YoY. Management describes the suspension of an interim dividend as a one-off, citing front-loaded capex; full-year capex guidance remains around RMB50bn and H1 capex was RMB24.1bn (≈48% of budget). DBS trims 2026–28 EPS forecasts by about 6.2%, 8.9% and 11.1% to RMB18.0bn, RMB19.0bn and RMB20.2bn (YoY -12.3%, +5.6%, +6.3%). Target

DBS says China Unicom’s H1 net profit fell 34.6% YoY to RMB9.5bn, about 26% below market expectations, driven by VAT reclassification and employee benefits rising >19% YoY. Management describes the suspension of an interim dividend as a one-off, citing front-loaded capex; full-year capex guidance remains around RMB50bn and H1 capex was RMB24.1bn (≈48% of budget). DBS trims 2026–28 EPS forecasts by about 6.2%, 8.9% and 11.1% to RMB18.0bn, RMB19.0bn and RMB20.2bn (YoY -12.3%, +5.6%, +6.3%). Target price cut to HKD8.0 from HKD8.7; Buy rating maintained. DBS retains a >65% payout ratio assumption, implying a dividend yield of roughly 7.9%.