CHU - China Unicom: Industrial Internet Of Things In The Spotlight

• China Unicom's 3Q 2020 financial performance was decent with its service revenue and net profit up +5% and +11% YoY, and its IIoT business was the bright spot.
• High expectations for China Telecom's IIoT business and mobile services business could fail to materialize if the 5G penetration rate in China eventually turns out to be lower than expected.
• China Unicom trades at consensus forward next twelve months' P/E and EV/EBITDA multiples of 10.0 times and 1.5 times, respectively, and it offers a consensus FY 2021 dividend yield of 4.1%.

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