An Analysis Of The Investment Value Of China Unicom

The mobile communication market in China develops rapidly. At the same time, the competition is intensified day by day. In this market, China Mobile is occupying a leading position in the competition. The restructuring of telecommunication industry in 2008 and the issuing of 3G licenses at the beginning of 2009 will increase the competition among the operators. After the restructuring, three all-service operators come into being. The issuing of 3G licenses means the upgrade of the competition of Chinese telecommunication industry at all scale.This paper analyzes the macro economy and telecommunication industry, and does research on the international 3G development firstly. After this, it prospects the Chinese telecommunication industry in all-service age. The 3G development in China has its own inner advantages. Large-scale development of 3G will improve the earnings of operators.This paper emphasizes on the analysis of China Unicom in details. After introductions of the company, it analyzes the competence of China Unicom in 3G age and deems that China Unicom will benefit most for 3G..To research the inner value of the company, this paper forecasts the turnovers of mobile communication, fixed line and broadband service, and the relevant costs of the company during 2009-2010. At last, based on these analyses, it forecasts the performance of China Unicom during 2009-2010 and figures out the company value through PE/PEG estimation. After this, it brings up the investment strategy.