China Unicom may take further profit hits

China United Network Communications Group Co is likely to see further profit decline in the coming quarters, as the State-owned firm continues its hefty investments into 4G infrastructure to catch up with the market leader, analysts said.

But the decline will not affect the company's long-term research into 5G and the internet of things, which are widely seen as the next big opportunity for telecom carriers, they added.

China Unicom, the country's second-biggest mobile career by subscribers, warned in late July that its net profit in the first half of this year will drop by around 80 percent compared with the same period last year.