On the second day of market opening in 2022 (January 5), “Big Mac” China Mobile officially returned to a shares.
the fund-raising amount may reach a new high in more than ten years, and the net profit can rank among the top ten A-Shares
On December 22, 2021, China Mobile launched offline and online subscription. It is estimated that the fund-raising scale before and after the full exercise of “green shoes” will be 48.695 billion yuan and 56 billion yuan respectively.
According to Zhongxin Jingwei, if the fund-raising amount of “green shoes” is 56 billion yuan after the full exercise, China Mobile ranks fifth in a shares, second only to Agricultural Bank Of China Limited(601288) , Petrochina Company Limited(601857) , China Shenhua Energy Company Limited(601088) , China Construction Bank Corporation(601939) . Since the listing date of Agricultural Bank Of China Limited(601288) is July 15, 2010, it also means that the fund-raising amount of China Mobile may reach a new high in more than a decade.
In terms of performance, according to the prospectus, in the first three quarters of 2021, China Mobile’s revenue was 648.630 billion yuan, a year-on-year increase of 12.92%; The net profit was 87.088 billion yuan, a year-on-year increase of 6.59%.
According to the net profit of the first three quarters, China Mobile ranked first among the three major operators, far exceeding RMB 12.926 billion and RMB 23.436 billion of China United Network Communications Limited(600050) (A shares) and China Telecom Corporation Limited(601728) (A shares). Even among all the listed stocks of a shares, China Mobile can still be ranked in the top 10, only after Petrochina Company Limited(601857) , ranking eighth.
From the perspective of business division, the prospectus shows that China Mobile provides a full range of communication and information services for individuals, families, government enterprises and emerging markets. By the end of June 2021, in terms of personal market, the company had 946 million mobile customers and 251 million 5g package customers; In terms of home market, the company has 205 million home broadband customers and 154 million “mobaihe” customers; In terms of government enterprise market, the number of government enterprise customers of the company reached 15.53 million, a year-on-year increase of 37.56%; In emerging markets, the company expands new development space for information services, focusing on emerging fields such as international business, digital content and mobile payment.
In terms of the proportion of revenue, in the first half of 2021, personal business is still the main source of income, accounting for nearly 65%; Emerging market revenue is small, accounting for less than 4%.
Source: China Mobile prospectus
China Mobile estimates that the annual revenue in 2021 will be 844.877 billion yuan to 852.558 billion yuan, 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%.
There is a price difference between and Hong Kong stocks. Is there a risk of breaking?
China Mobile’s return to a has been strongly concerned by investors.
Southwest Securities Co.Ltd(600369) Gao Yuyang, chief analyst of TMT communication industry, told Zhongxin Jingwei that China Mobile’s return to a is a milestone in the communication sector and has a certain boost to the whole sector. This time, a new channel for equity financing in the Chinese market is added, and relevant companies in the upstream of the industrial chain will benefit from operation.
However, by the end of 2021, investors tend to be rational in playing new shares and the breaking of new shares is increasing. On December 27, 2021, China Mobile disclosed the announcement of the IPO results. The online investors did not pay the subscription amount of 743 million yuan, setting a record for the highest abandonment of a shares.
At the same time, China Telecom Corporation Limited(601728) the way back to a is also vivid.
On August 20, 2021, China Telecom Corporation Limited(601728) returned to the first day of listing of a, the issuing price of 4.53 yuan / share was flat at the opening, began to rise before noon, and closed up 34.88% on the same day. Subsequently, China Telecom Corporation Limited(601728) fell the limit for two consecutive days, and then continued the downward trend. As of the closing on January 4, the company’s share price was reported at 4.38 yuan / share, still below the issue price.
In addition, it is worth noting that there is a price difference in ah shares of China Mobile. As of the closing on January 4, China Mobile’s H shares were reported at HK $48 / share, while the issue price of A-Shares was 57.58 yuan / share, which is not a small gap. However, after hours on January 4, China Mobile announced on the Hong Kong stock exchange that, in view of the completion of the issuance of RMB shares of the company, after the exercise period of the over allotment option for the issuance of RMB shares expires on February 7, 2022, the company plans to repurchase Hong Kong shares on the Hong Kong Stock Exchange in accordance with the repurchase authorization. The number of repurchased Hong Kong shares shall not exceed 2.048 billion, equivalent to no more than 10% of the total issued Hong Kong shares of the company on the date of the 2021 annual general meeting. The repurchased Hong Kong shares will be deemed to be cancelled at the time of repurchase.
Gao Yuyang believes that market sentiment is changeable, and China Mobile has the possibility of breaking. However, Chinese operators play a more important role in supporting the state-owned economy and the development of companies related to China’s communication industry chain. In the long run, Chinese operators are high-quality core assets, scarce targets in the investment field, stable profits and high dividend rate, which are suitable for long-term investment.
(Zhongxin Jingwei)
