China Mobile (600941. SH), which had once swam on the edge of breaking, unexpectedly raised the limit on Wednesday, which became a good story of the beginning of the year of the tiger in the capital market.
On February 9, China Mobile’s share price rose all the way and closed the trading limit near the midday closing. As of the closing, the share price rose by 10% to close at 67.43 yuan / share, the highest price since the listing, with a total market value of about 1.44 trillion yuan.
Not only that, its strong limit also led to the strengthening of the communication operator sector. As of the close, China United Network Communications Limited(600050) (600050. SH) rose 3.32%, the share price hit a near 60 day high, China Telecom Corporation Limited(601728) (601728. SH) also rose 2.8%.
On the same day, China Mobile announced that the exercise period of “green shoes” expired on February 7 and has negotiated with the joint lead underwriters ( China International Capital Corporation Limited(601995) , Citic Securities Company Limited(600030) , China Securities Co.Ltd(601066) , Huatai united, BOC International, China Merchants Securities Co.Ltd(600999) ) to enable the green shoes mechanism.
Due to the exercise of “green shoes” to issue additional shares, China Mobile increased the funds raised by 3.286 billion yuan. Together with the funds raised by the initial issuance, the total amount of the final funds raised by this issuance was 51.981 billion yuan, and the net amount of funds raised was 51.374 billion yuan.
Recently, the high and low style of the market has changed, and the undervalued sector has welcomed the favor of funds. China Mobile has been supported by intensive research reports issued by many institutions. In addition, the lead underwriter China International Capital Corporation Limited(601995) spent more than 4 billion yuan to buy its shares during the “green shoes” period of China Mobile.
luck turns
“Thank China Mobile for turning losses into profits today!” A netizen said on the social platform on February 9 that since 2022, thanks to China Mobile, he had a maximum loss of 8.22% and now earns 7.48%.
Since February 8, the stock price trend of China Mobile began to change. In just two trading days, the total market value rose by more than 190 billion yuan.
On January 5 this year, China Mobile officially returned to A-Shares and was listed on the Shanghai Stock Exchange. The opening price was 63 yuan / share, which once rose by more than 8%. As of the close, China Mobile closed at 57.88 yuan / share, up 0.52%.
However, on the day after listing, China Mobile’s share price approached the breaking line, hitting the issue price of 57.58 yuan for many times since early trading. At one time in the morning, nearly 1 million people paid the bill at the price of 57.58 yuan, worth about 6 billion yuan.
Since returning to a, China Mobile’s A-share price has approached the breaking line several times, and fell to the issue price of 57.58 yuan / share on January 21.
However, under the escort of the “green shoe mechanism”, the company’s share price barely held the issue price.
Previously, the “green shoes” broke after the expiration of China Telecom Corporation Limited(601728) , and the lesson is still in sight. The stock price trend of China Mobile will inevitably cause external concerns.
After the closing price of China Mobile’s stock was lower than the net asset value per share for 20 consecutive trading days and the starting conditions of the measures to stabilize the stock price were triggered, China Mobile finally began to protect the market.
Specifically, China Mobile Group plans to increase its A-share holdings of China Mobile with its own funds from January 21 to December 31, with a cumulative increase amount (including this increase amount) of no less than 3 billion yuan and no more than 5 billion yuan.
On January 23, China Mobile announced that the actual controller, China Mobile Communications Group, increased its holdings of 12.32 million A-Shares of the company on January 21, with an increase of about 710 million yuan, accounting for about 1.457% of the total issued A-Shares of the company.
Even so, its share price has not been greatly boosted.
Until “take off the green shoes”, all kinds of benefits are linked, and the previous foreshadowing and current opportunities turn into “sharp blades”.
It is reported that China Mobile has oversubscribed about 1.27 shares to online investors according to the issuance price, accounting for about 15% of the initial issued shares.
China Mobile said that all the funds raised after exercising the “green shoes” will be used for its 5g boutique network construction project, cloud resources new infrastructure construction project, Gigabit smart home construction project, smart middle platform construction project, new generation information technology research and development and digital intelligence ecological construction project.
mechanism support
After the Spring Festival, the high and low switching of market style, the relay singing of institutions, the blessing of 5g concept of Winter Olympics and other factors, together with a profit forecast of the company in 2021, have created opportunities for China Mobile’s daily limit.
The 21st Century Business Herald reporter found that China International Capital Corporation Limited(601995) , as the authorized lead underwriter of China Mobile, used the funds obtained from the over allotment to buy 69.7871 million shares of China Mobile from the secondary market from January 5 to February 7, corresponding to 4.018 billion yuan.
In addition to the blessing of China International Capital Corporation Limited(601995) real gold and silver, recently, a number of securities companies intensively released research reports and expressed their optimism for China Mobile. Among them, Changjiang Securities Company Limited(000783) , Zheshang Securities Co.Ltd(601878) , Citic Securities Company Limited(600030) all give China Mobile A-share buy rating, China Industrial Securities Co.Ltd(601377) believes that the stock has large upward space.
Zheshang Securities Co.Ltd(601878) on February 9, China Mobile was given a buy rating. The reasons for the rating mainly include: the industry inflection point is confirmed, and the company’s growth is expected to exceed expectations; 5g cost can be controlled as a whole, and 700m can enhance competitiveness. Risk warning: Mobile ARPU drops more than expected; The growth rate of emerging business is lower than expected; Cost growth exceeded expectations, etc.
“China Mobile is a high-quality core asset with both technology and consumption attributes. It has great configuration value due to the reconstruction of growth logic in the 5g era.” Citic Securities Company Limited(600030) believes that from the perspective of valuation, China Mobile has high-quality asset bonus and abundant cash flow. At present, the valuation is still at a historical low and the investment value is prominent.
It is worth noting that the market style has changed recently, and the undervalued sector has received more attention from institutions.
Guosheng securities recently pointed out that the short-term market may welcome the good opportunity of rebound to do more. It can light the index and focus on individual stocks, focusing on the opportunities of infrastructure, power, coal and other small and medium-sized stocks dominated by low price and undervalued value.
Founder Securities Co.Ltd(601901) also said that it is optimistic about the market performance of science and technology growth companies represented by new energy and TMT under the background of relatively abundant and friendly liquidity environment, low overall market valuation and the industrial logic of emerging industry zhugra cycle.
According to the previous performance forecast of China Mobile, the company achieved a revenue of about 844.877 billion yuan to 852.558 billion yuan in 2021, with a year-on-year increase of about 10% – 11%; The net profit attributable to the parent company was about 114.307 billion yuan to 116.464 billion yuan, with a year-on-year increase of about 6% – 8%; The net profit deducted from non profit was about 107.285 billion yuan to 109.328 billion yuan, with a year-on-year increase of about 5% – 7%.
Among the companies whose A shares have disclosed the performance forecast for 2021, China Mobile ranks first in terms of the upper limit of the net profit forecast.
