Reorganization rumors What is the capital market. The rumors have almost every reorganization, stock price volatility will inevitably bring. "EDI over the current share price of 5.6 yuan, compared with its actual performance. About 20% of the stock from investors in the restructuring of China Unicom is expected. "Merchants Securities telecom industry analyst, said Qin Zhen . ZHANG Yu analysis of the telecommunications sector analyst BDA China Unicom is also possible to re very optimistic. "China Unicom CDMA network is now leased by the listed company to company, which lowered the net interest listed companies.
         If stripping off, the company will be C net capital investment for the development of WCDMA listed companies. Unicom net interest is expected to increase by 10% or even higher. "undervalued or unrealistically high since the bull market in 2006 , all 3G concept of a soaring stock price, as stock markets in Shenzhen and Shanghai ranked second in circulation equity, ranked 14th in total market value of the super blue chips, the trend is just like EDI, "Man Niu." "In all 3G concept stocks, China Unicom is a very low price-earnings ratio of around 30 times. "It seems Qin Zhen, and the current generally higher than 100 times, 3,000 times the price-earnings ratio approaching 3G concept stocks, Unicom's profits and stock prices have been very stable. However, this does not mean that the stock is undervalued EDI. 
          In fact, almost the majority of the analysts interviewed by this paper that, China Unicom, the current stock price has exceeded its true level of performance. "I think if we do not consider restructuring the EDI four blocks much more reasonable prices. Now the price equivalent to 60 to 80%. "Galaxy Securities senior research fellow Wang Guoping respect. Earlier, the industry had been rumors, in the wake of 3G licensing, telecommunications operators will be restructured, the two networks will be split up China Unicom. Then GSM network operator China Unicom and China Netcom are merged, and upgrade to the WCDMA. CDMA network will be extended to China Telecom. Although the parties have denied the rumors, but this is expected to promote China Unicom share prices continued to rise rapidly becoming the stimulant. "If the EDI restructuring in the near future will be absolutely positive. "Qin Zhen, that the reorganization will create new competitors, But a movement is expected to dominate the mobile operators to break the pattern, EDI is catching up room for imagination. Meanwhile, EDI may operate WCDMA network. The maturity of 3G technology may reduce the risk of Unicom 3G operators. "Currently 10 operators in the world before the eight WCDMA, it also supports the terminal and relatively mature."
           In addition, if the reorganization of China Unicom's CDMA network sale proceeds will be a key Unicom stock value. Qin Zhen, China Unicom's CDMA network previously invested about 100 billion yuan, if the depreciation. their networks to be valued at 600 billion, if calculated on the value of CDMA users should increase 20 billion yuan. But this is only a simple value estimate, if Unicom restructuring, CDMA network different valuation methods were also very different. "Now it difficult to tell if the reorganization, CDMA will be how the transfer of the allocation, transfer, Leasing may. "Wang Guoping," If the market is transferred, the network will have a premium resale. China Unicom will benefit from greater. "Obviously compression CDMA investment again, performance of the change is more than just the expected reorganization. EDI pre-tax profit of 8.44 billion yuan in 2006, an increase of 29.4% and a net profit of 3.64 billion yuan. growth of 28.2%. Among them, the biggest bright spot is the year's first CDMA business profits tax profit of 1.03 billion yuan. Prior to this, due to continued investment in its CDMA network construction, the relative lack of management capability.
        Two Internet market in coordination with the outside world on doubts about the ability of the China Unicom, CDMA network has been suffering from external attack. In fact, CDMA 2006 profit business is not easy -- the same year the price is a negative growth in the CDMA business. 30.22 billion yuan in 2005 compared with the 9.7% decrease, which means that CDMA year the profitability of a business is a key business cost control and compression. "In fiscal 2006 report, a significant details, in the fourth quarter of the previous EDI, pre-tax gross margins will be better than the first quarter, but in 2006, the four quarters of pre-tax gross margins were more balanced, This means that Unicom's ability to strengthen financial management and internal control. "Merchants Securities, Qin Zhen said. However, the overall strength of China Unicom's CDMA business has indeed significantly improved. This reporter has learned that with the completion of the third phase of network construction, China Unicom CDMA network has invested about 100 billion yuan. network capacity to 70 million households, as of the end of 2006, has more than 36 million CDMA users households. 
          ping, Netcom and China Unicom are currently relatively weak operators, if the reorganization and merger. may not be strong together two weak operators. Another problem is that if the EDI restructuring, 3G will affect the entire industry chain. "Generally speaking, each operator will have their own closer cooperation equipment manufacturers, network replacement mean that the relationship between equipment manufacturers and operators will be upset, this will bring equipment manufacturers in the market reshuffle. "Zhang Yu said.