# China United Network Communications (600050.SHG)

Canonical: https://gigainvestors.com/s/600050.SHG

Analysis as of: 2026-10-16T07:34:43.913Z. Financial observations: FY1999–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 4.39 per share; close as of 2026-10-15.

Estimated value: low CNY 2.59 per share, central CNY 2.88 per share, high CNY 3.25 per share. Buy at or below the central value CNY 2.88 per share. Valuation as of 2026-10-16T07:34:43.913Z; scenarios are not confidence intervals.

Expected annual return: 7.2% at the stated quote. About 7.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.50×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.00×

- FY2017: 0.01×

- FY2018: 0.04×

- FY2019: 0.05×

- FY2020: 0.05×

- FY2021: 0.05×

- FY2022: 0.06×

- FY2023: 0.06×

- FY2024: 0.06×

- FY2025: 0.06×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.8%

- ROIC, second-lowest year: 0.7%

- Typical minus recent gross margin: 0.9 pp

- Typical gross margin (annual median): 24.4%

- Recent gross margin (lower of latest and 3-year median): 23.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 20.6%

- ROIC including acquisitions, ten-year median: 3.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -0.3%

- FY2017: 0.7%

- FY2018: 6.4%

- FY2019: 7.2%

- FY2020: 8.3%

- FY2021: 11.2%

- FY2022: 12.5%

- FY2023: 11.4%

- FY2024: 12.6%

- FY2025: 12.4%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.78×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 31B

- Net income, five-year total: CNY 40B

- Return on incremental invested capital: 16.6%

- Working capital / revenue, annual change: 1.2 pp

- Working capital / revenue, change between three-year averages: 7.8 pp

- Working capital / revenue, final three-year average: -21.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.67×

- FY2022: 0.56×

- FY2023: 0.67×

- FY2024: 0.76×

- FY2025: 1.14×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 0.7% vs 12.4%

- Per-share earnings: 0.02 to 0.30 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.8%

- Ordinary dilution, 5-year annual growth: -0.4%

- Market cap gain: CNY 2.6B

- Cumulative retained earnings: CNY 31B

- Diluted shares, 10-year annual growth: 3.8%

- Diluted shares, 5-year annual growth: -0.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 40.0%

- Per-share value change: CNY 0.28

- Per-share value, starting three-year median: CNY 0.02

- Per-share value, ending three-year median: CNY 0.30

- Buybacks concentrated in cheaper years (correlation): -0.26

- Average buyback yield: 0.3%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 8.6B

- Cumulative net income, 10 years: CNY 55B

- ROIC, first three-year median: 0.7%

- ROIC, last three-year median: 12.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.01

- FY2017: CNY 0.02

- FY2018: CNY 0.13

- FY2019: CNY 0.16

- FY2020: CNY 0.18

- FY2021: CNY 0.20

- FY2022: CNY 0.24

- FY2023: CNY 0.27

- FY2024: CNY 0.30

- FY2025: CNY 0.30

### accounting: pass

- Sloan accruals: -12.3%

- Receivables to sales index (DSRI): 1.37×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 10.02×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.20×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -12.9%

- FY2017: -15.8%

- FY2018: -16.8%

- FY2019: -16.2%

- FY2020: -17.5%

- FY2021: -17.8%

- FY2022: -14.6%

- FY2023: -14.5%

- FY2024: -12.2%

- FY2025: -12.3%

## Holders

## Price story

Down 30% since Feb 2025 · sales +0.7%

Story as of 2026-10-16T10:00:02.184Z; price observation 2026-10-15.

Price needs cash profits to grow 7.1% a year for ten years

### Sales · FY2024–2025

sales +0.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 274B 

- FY2017: CNY 275B 

- FY2018: CNY 291B 

- FY2019: CNY 291B 

- FY2020: CNY 304B 

- FY2021: CNY 328B 

- FY2022: CNY 355B 

- FY2023: CNY 373B 

- FY2024: CNY 390B 

- FY2025: CNY 392B 

### Gross margin · FY2025

gross margin 23.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 22.8% 

- FY2017: 24.6% 

- FY2018: 26.5% 

- FY2019: 26.2% 

- FY2020: 26.0% 

- FY2021: 24.4% 

- FY2022: 24.2% 

- FY2023: 24.5% 

- FY2024: 23.3% 

- FY2025: 23.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are CNY 392.2 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.913Z); FY2025: revenue 392222881000; grossProfit 92317013000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600050.SHG: 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.

### Why customers stay

Margins ranged from 23.3% to 24.5% during 2023–25; it earns 9.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.913Z); FY2023: grossProfit / revenue = 24.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.913Z); FY2024: grossProfit / revenue = 23.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.913Z); FY2025: grossProfit / revenue = 23.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.913Z); 10-year return on capital observations [[2016,-0.0027192662224324463],[2017,0.006638092843923699],[2018,0.06436327965339406],[2019,0.07206470194536463],[2020,0.08345687856325837],[2021,0.11204912179678486],[2022,0.12540487790775992],[2023,0.11431965413235821],[2024,0.12585004437869277],[2025,0.12359974448705308]]; median 0.09775300018002162. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 24% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.913Z); Gross margin observations: [[2021,0.24410091813473814],[2022,0.24160930804500505],[2023,0.24474719715382198]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.913Z); FY2017: growth capex 0; upkeep 65629616973; owner earnings 5692947027. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.913Z); FY2018: growth capex 0; upkeep 56823254789; owner earnings 18696121211. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.913Z); FY2019: growth capex 0; upkeep 60366712823; owner earnings 13842020177. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.913Z); FY2020: growth capex 0; upkeep 58655696504; owner earnings 14422908496. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.913Z); FY2021: growth capex 2157203337; upkeep 69889844000; owner earnings 4222460878. Growth capex / owner earnings = 0.5108877025337356.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.913Z); FY2022: growth capex 2751901311; upkeep 69715279000; owner earnings 4105564113.6376247. Growth capex / owner earnings = 0.6702857962585199.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.913Z); FY2023: growth capex 13624037339; upkeep 65747781000; owner earnings 5498314677.223309. Growth capex / owner earnings = 2.4778569686884935.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.913Z); FY2024: growth capex 16444306836; upkeep 59297555000; owner earnings 6906424547.327227. Growth capex / owner earnings = 2.381015925579599.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.913Z); FY2025: growth capex 0; upkeep 67640587000; owner earnings 10429244184.480698. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.913Z); Dividend observations: [[2016,8864165354],[2017,6293369284],[2018,3938559553],[2019,1654483578],[2020,1873940664],[2021,3527682499],[2022,3210584790],[2023,11043965983],[2024,12916436626],[2025,14318922000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 49.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600050.SHG SharesStats.PercentInsiders = 49.424 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 7.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.913Z); Ten-year compound average after fade. Initial solved rate 0.08942284994874827. Price 4.39; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.8072880448435094 → FY2025 0.33924378798651267. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 5.13 per share

- 2016-11: CNY 6.66 per share

- 2016-12: CNY 7.31 per share

- 2017-01: CNY 6.54 per share

- 2017-02: CNY 7.03 per share

- 2017-03: CNY 7.47 per share

- 2017-04: CNY 7.47 per share

- 2017-05: CNY 7.47 per share

- 2017-06: CNY 7.47 per share

- 2017-07: CNY 7.47 per share

- 2017-08: CNY 8.04 per share

- 2017-09: CNY 7.42 per share

- 2017-10: CNY 7.64 per share

- 2017-11: CNY 6.96 per share

- 2017-12: CNY 6.33 per share

- 2018-01: CNY 6.98 per share

- 2018-02: CNY 6.42 per share

- 2018-03: CNY 5.77 per share

- 2018-04: CNY 5.71 per share

- 2018-05: CNY 5.43 per share

- 2018-06: CNY 4.92 per share

- 2018-07: CNY 5.21 per share

- 2018-08: CNY 5.61 per share

- 2018-09: CNY 5.57 per share

- 2018-10: CNY 5.42 per share

- 2018-11: CNY 5.28 per share

- 2018-12: CNY 5.17 per share

- 2019-01: CNY 5.31 per share

- 2019-02: CNY 6.43 per share

- 2019-03: CNY 6.79 per share

- 2019-04: CNY 6.71 per share

- 2019-05: CNY 5.93 per share

- 2019-06: CNY 6.16 per share

- 2019-07: CNY 5.93 per share

- 2019-08: CNY 5.85 per share

- 2019-09: CNY 6.01 per share

- 2019-10: CNY 6.14 per share

- 2019-11: CNY 5.71 per share

- 2019-12: CNY 5.89 per share

- 2020-01: CNY 5.65 per share

- 2020-02: CNY 5.48 per share

- 2020-03: CNY 5.22 per share

- 2020-04: CNY 5.22 per share

- 2020-05: CNY 4.96 per share

- 2020-06: CNY 4.84 per share

- 2020-07: CNY 5.08 per share

- 2020-08: CNY 5.19 per share

- 2020-09: CNY 4.85 per share

- 2020-10: CNY 4.77 per share

- 2020-11: CNY 4.90 per share

- 2020-12: CNY 4.46 per share

- 2021-01: CNY 4.19 per share

- 2021-02: CNY 4.33 per share

- 2021-03: CNY 4.27 per share

- 2021-04: CNY 4.25 per share

- 2021-05: CNY 4.35 per share

- 2021-06: CNY 4.32 per share

- 2021-07: CNY 4.12 per share

- 2021-08: CNY 4.19 per share

- 2021-09: CNY 4.11 per share

- 2021-10: CNY 4.08 per share

- 2021-11: CNY 3.88 per share

- 2021-12: CNY 3.93 per share

- 2022-01: CNY 3.71 per share

- 2022-02: CNY 3.82 per share

- 2022-03: CNY 3.57 per share

- 2022-04: CNY 3.52 per share

- 2022-05: CNY 3.48 per share

- 2022-06: CNY 3.46 per share

- 2022-07: CNY 3.44 per share

- 2022-08: CNY 3.55 per share

- 2022-09: CNY 3.35 per share

- 2022-10: CNY 3.36 per share

- 2022-11: CNY 4.41 per share

- 2022-12: CNY 4.48 per share

- 2023-01: CNY 5.23 per share

- 2023-02: CNY 5.28 per share

- 2023-03: CNY 5.42 per share

- 2023-04: CNY 5.44 per share

- 2023-05: CNY 4.92 per share

- 2023-06: CNY 4.80 per share

- 2023-07: CNY 5.16 per share

- 2023-08: CNY 5.21 per share

- 2023-09: CNY 4.91 per share

- 2023-10: CNY 4.46 per share

- 2023-11: CNY 4.39 per share

- 2023-12: CNY 4.38 per share

- 2024-01: CNY 4.52 per share

- 2024-02: CNY 4.80 per share

- 2024-03: CNY 4.67 per share

- 2024-04: CNY 4.69 per share

- 2024-05: CNY 4.57 per share

- 2024-06: CNY 4.70 per share

- 2024-07: CNY 4.70 per share

- 2024-08: CNY 4.64 per share

- 2024-09: CNY 5.35 per share

- 2024-10: CNY 4.99 per share

- 2024-11: CNY 5.15 per share

- 2024-12: CNY 5.31 per share

- 2025-01: CNY 4.89 per share

- 2025-02: CNY 6.25 per share

- 2025-03: CNY 5.56 per share

- 2025-04: CNY 5.32 per share

- 2025-05: CNY 5.36 per share

- 2025-06: CNY 5.34 per share

- 2025-07: CNY 5.36 per share

- 2025-08: CNY 5.70 per share

- 2025-09: CNY 5.50 per share

- 2025-10: CNY 5.42 per share

- 2025-11: CNY 5.40 per share

- 2025-12: CNY 5.11 per share

- 2026-01: CNY 5.11 per share

- 2026-02: CNY 4.92 per share

- 2026-03: CNY 4.45 per share

- 2026-04: CNY 4.52 per share

- 2026-05: CNY 4.35 per share

- 2026-06: CNY 4.00 per share

- 2026-07: CNY 4.46 per share

- 2026-08: CNY 4.30 per share

- 2026-09: CNY 4.23 per share

- 2026-10: CNY 4.37 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 2.26 per share, central CNY 2.44 per share, high CNY 2.68 per share

- FY2017: low CNY 3.16 per share, central CNY 3.39 per share, high CNY 3.68 per share

- FY2018: low CNY 2.10 per share, central CNY 2.26 per share, high CNY 2.47 per share

- FY2019: low CNY 3.34 per share, central CNY 3.85 per share, high CNY 4.31 per share

- FY2020: low CNY 6.30 per share, central CNY 7.39 per share, high CNY 8.45 per share

- FY2021: low CNY 7.04 per share, central CNY 7.95 per share, high CNY 9.02 per share

- FY2022: low CNY 7.00 per share, central CNY 7.84 per share, high CNY 8.95 per share

- FY2023: low CNY 2.75 per share, central CNY 3.02 per share, high CNY 3.38 per share

- FY2024: low CNY 2.78 per share, central CNY 3.06 per share, high CNY 3.44 per share

- FY2025: low CNY 2.91 per share, central CNY 3.19 per share, high CNY 3.57 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations