China United Network Communications Limited (600050.SS) stock analysis

In our weekly check, China United Network Communications Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 7, red flags: 5.

About China United Network Communications Limited

China United Network Communications Limited is a Communication Services company (Telecommunications Services) based in China, listed on SHH as 600050.SS.

What our checks show for 600050.SS

Red flags

• The gross margin fell by 3.5 points, to 20.9%: costs are rising faster than prices.
• The net margin is only 1.6%: little room if costs rise.
• The dividend takes 183% of profit: little cushion if profit falls.
• The stock has fallen as much as 77% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 0.5%.

Warning signs

• Operating profit covers interest only 2.3 times: a weak year could make the payments hard.
• The net margin fell by 0.4 points over 5 years, to 1.6%: the company keeps less of each sale as profit.
• Analysts expect only about 1.2% a year of growth in revenue.
• Revenue grew only 3.5% a year over the last 3 years.
• Earnings per share fell 28.7% a year over the last 3 years.
• Net profit fell 5.5% a year over the last 3 years.
• The stock is still below its previous peak.

Strengths

• Net debt is only 0.1x a year of EBITDA: the balance sheet has room.
• Operating cash flow is 15.38x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 28.3% a year over the next years.
• A large company: market value $20.46 billion.
• Beta 0.56: the stock usually moves less than the market.
• Actively traded: about 138 million shares a day.

Similar companies

DTEGF · T · 0788.HK · TMUS · TEL2-B.ST · TEL.OL

Questions

What grade does China United Network Communications Limited (600050.SS) have?

In our weekly check, China United Network Communications Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 7, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 600050.SS stock?

This week's biggest flags for China United Network Communications Limited: Gross margin falling, Thin margins, Dividend stretched. In total 12 of 25 checks show a warning or a red flag.

What does China United Network Communications Limited do?

China United Network Communications Limited is a Communication Services company (Telecommunications Services) based in China, listed on SHH as 600050.SS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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