Morgan Stanley: Maintains "Equal-Weight" rating on China United Network Communications (00762) H-shares and HK$7 target price; third-quarter net profit fell 31% year-on-year.

Morgan Stanley issued a research report stating that it maintains the "Equal-Weight" rating on China United Network Communications (00762) H-shares and the HK$7 target price. The company's third-quarter service revenue fell 0.4% year-on-year to RMB82.9 billion, and EBITDA fell 10% year-on-year to RMB22.8 billion, mainly affected by changes in the employee expense model; net profit fell 31% year-on-year to RMB3.8 billion. In terms of business, China United Network Communications' computing power revenue for the first nine months grew 12.2% year-on-year, IDC revenue grew 10.4% year-on-year, and total capacity exceeded 3GW.