Qualcomm Inc (QCOM)

[khemara_qc]

D.R., below is another article on CHU:

China Unicom says Q1 net rises to 1.4 bln yuan
Thu Apr 29, 2004 10:30 AM ET

HONG KONG, April 29 (Reuters) - China's number-two mobile operator, China Unicom Ltd (0762.HK: Quote, Profile, Research) , posted an 8.7 percent rise in first-quarter net profit on Thursday, thanks to the purchase of nine provincial networks from its parent in December.
China Unicom said its unaudited profit for the first three months of 2004 rose to 1.4 billion yuan (US$169.1 million) from 1.29 billion yuan in the same period last year, as operating revenue jumped 22.6 percent to 19.59 billion yuan.

The networks acquisition boosted the firm's user numbers by almost 11 million.

But its outlook is threatened by a bruising campaign at larger rival China Mobile (Hong Kong) Ltd (0941.HK: Quote, Profile, Research) to chase the lower-spending users who make up Unicom's core market, analysts said.

They are also concerned that rising profitability at the group's newer network using CDMA technology will not be enough to offset shrinking margins at its older and bigger GSM-standard network.

Shares in China Unicom have skidded 11.7 percent in 2004 through Wednesday amid a broader sell-off in China stocks as the market worries about Beijing's efforts to cool a soaring economy. Shares in China Mobile fell 12.79 percent over the same period.

(US$=8.28 yuan)
© Reuters 2004. All Rights Reserved

http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=4987826