On March 29, China Unicom (NYSE:CHU) released fourth-quarter and calendar year 2006 earnings for the period ended Dec. 31.
- Excluding the one-time unrealized loss from exchange rates on $1 billion of convertible bonds sold to South Korea's SK Telecom (NYSE:SKM), earnings would have recorded a 25.2% growth.
- An 11.4% growth in new subscribers, driven primarily by GSM services, contributed to an 8.3% boost in revenue.
- Management announced an increase in the firm's dividend of 63.6%.
- The Motley Fool CAPS community has given China Unicom four stars. Meanwhile its main rivals, China Mobile (NYSE:CHL) and China Telecom (NYSE:CHA), both boast the maximum five-star rating.
(Figures in millions, except per-share data, and converted at the rate of $1 = 7.7302 Chinese Yuan Renminbi as of April 2, 2007 for both 2005 and 2006 figures. One ADR is equivalent to ten local shares.)
Income Statement Highlights
|
Fiscal Year 2006 |
Fiscal Year 2005 |
Change | |
|---|---|---|---|
|
Sales |
$12,198.2 |
$11,260.9 |
8.3% |
|
Net Profit |
$482.8 |
$637.9 |
(24.3%) |
|
EPS |
$0.04 |
$0.05 |
(23.1%) |
|
Earnings per ADR |
$0.39 |
$0.50 |
(23.1%) |
|
Diluted Shares |
12,649.3 |
12,607.5 |
0.3% |
Get back to basics with the income statement.
Margin Checkup
|
Fiscal Year 2006 |
Fiscal Year 2005 |
Change* | |
|---|---|---|---|
|
Operating Margin |
9.4% |
8.2% |
1.3% |
|
Net Margin |
4% |
5.7% |
(1.7%) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Fiscal Year 2006 |
Fiscal Year 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,601.2 |
$744.4 |
115.1% |
|
Accounts Rec. |
$442.3 |
$588.4 |
(24.8%) |
|
Inventory |
$301.9 |
$272.7 |
10.7% |
|
Liabilities |
Fiscal Year 2006 |
Fiscal Year 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$3,401.0 |
$2,396.7 |
41.9% |
|
Long-Term Debt |
$1,871.1 |
$1,550.0 |
20.7% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
2006 |
2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$4,586.1 |
$3,984.9 |
15.1% |
|
Capital Expenditures |
$2,166.2 |
$2,153.0 |
0.6% |
|
Free Cash Flow |
$2,419.9 |
$1,831.9 |
32.1% |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Qiao Xing Universal Telephone: A Chinese Nokia in the Making? ...
- The Best E-Commerce Stock for 2007: TOM Online
- Don't Hang Up on China Mobile
SK Telecom is a Motley Fool Global Gains selection.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
