“China Unicom (Hong Kong) Ltd. (762), the nation’s second-largest mobile-phone company, dropped the most in more than three years in Hong Kong trading after third- quarter profit missed analysts’ estimates.
Unicom fell 7.6 percent to HK$12.72, its largest decline since April 1, 2009. The stock has lost 22 percent this year while the benchmark Hang Seng Index has gained 17 percent.
Net income rose 27 percent to 2.02 billion yuan ($324 million), compared with the 2.21 billion-yuan median of seven analysts’ estimates in a Bloomberg News survey. Chairman Chang Xiaobing turned to low-cost smartphones priced at 1,000 yuan or less, luring price-conscious users such as students, after losing the advantage as the only Chinese carrier to offer Apple Inc.’s iPhone with a service plan.
“Monthly data usage of its 3G subscribers appears lackluster,” Steven Liu, an analyst at Standard Chartered Bank, said in a report as he cut his recommendation to underperform.”
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