China Mobile (600941)
Key points
The world's largest operator returns to a. China Mobile is the largest communication service provider in China. It is also a world-class telecom operator with the largest global network and customers, leading profitability and ranking in the forefront of market value. As of December 21, the company had 957 million mobile customers, ranking first in the world; The total number of wired broadband customers is 240 million, ranking first in the world. As of 21 years ago, the company has a total of 5.28 million base stations, including 3.32 million 4G base stations and 500000 5g base stations, all ranking first in the world.
Chbn's four major markets are developing in an all-round way. The company adheres to customer-centered, continues to deepen the value management based on scale, vigorously promotes the all-round and integrated development of C (individual), H (family), B (government enterprise) and n (emerging), further consolidates and consolidates the basic ability, continues to deepen the marketing transformation and intelligent operation, improves the product competitiveness and service quality, and achieves good growth of the overall business, Customer satisfaction continues to improve.
Operators have entered the harvest period and have investment value. The three operators performed well in the first three quarters of 21 years, among which China Mobile's revenue and EBITDA grew the highest. The number of 5g package users of operators continued to rise. In the first three quarters, the three major operators added 276 million 5g package users, and the cumulative number of 5g package users was 600 million, accounting for 37% of the total number of mobile users. The 5g application "sailing" action plan (2021-2023) drafted by the Ministry of industry and information technology vigorously promotes 5g applications and opens up the profit space of operators. In addition, we believe that the market underestimated the market potential of network layer operators when paying attention to the Internet of things track. With the rapid rise of the number of Internet of things connections, operators benefit more and more.
China Mobile has strong profitability, raising funds for 5g construction and other projects. China Mobile has better profitability, lower asset liability ratio and higher proportion of monetary funds. After China Mobile returns to a, the raised funds will help accelerate the company's "digital intelligence" transformation and achieve high-quality development; The introduction of war investment will help the new cooperation mechanism, prosper the cooperation ecology, improve the level of governance and enhance the vitality of enterprises. We believe that in terms of 2B business, China Mobile has a large amount of investment in industry private network application and industrial investment, and returning to a is of great strategic significance; In terms of 2C business, China Mobile has the largest mobile user group, and the return to A-Shares brings intangible advertising effect. At the same time, China Mobile has high profitability and stable dividend. Returning to a can enable mainland investors to better share the company's income.
Give a "buy" rating: in the past, the market was not optimistic about operators for two major factors: the influence of the policy of "raising speed and reducing fees" and the pressure of 5g capital expenditure. The two major concerns of the market led to the continuous decline of operators' valuation, but now the influence of both factors has been weakened. In the future, 5g package user penetration will increase, 5g traffic differential pricing, and operator ARPU value is expected to increase. The return of operators to A-Shares will accelerate the transformation of enterprises and expand the application of 5g industry by introducing war investment and improving governance. We are optimistic about the reversal trend of operators' Fundamentals. We maintain the net profit of China Mobile for 21-23 years of RMB 116.0/128.5/1433 billion, corresponding to PE 12x / 11x / 10x of A-Shares and PE 8x / 8x / 7X of H shares. A shares are covered for the first time, and we give a "buy" rating, while H shares maintain a "buy" rating.
Risk tips: the policy risk of raising speed and reducing fees, the risk of intensified competition, the risk that 5g application is not as expected, and the risk of stock price fluctuation.
