China Mobile (600941)
Events
The company released its annual report for the 21st year, with a revenue of 848258 billion yuan in the 21st year, a year-on-year increase of 10.4%; The net profit attributable to the parent company was 115937 billion yuan, a year-on-year increase of 7.5%; Roe was 10.1%, up 0.3 percentage points year-on-year. The company plans to invest 185.2 billion yuan in capital expenditure in 2022, with a year-on-year increase of 0.9%.
Our comments are as follows:
The four business segments of chbn developed well, the number of C-end users / ARPU value increased both in volume and price, and government enterprises and emerging businesses grew rapidly under the general trend of digital economy.
The company’s overall revenue growth accelerated in 2021. Specifically, 1) the personal market revenue was 483434 billion yuan, with a year-on-year increase of 1.4%, reversing the downward trend. There were 957 million mobile users and 387 million 5g package customers, with a penetration rate of 40.4%. The ARPU value increased from 47.4 yuan to 48.8 yuan, realizing the simultaneous rise of volume and price; 2) The household market revenue was 100508 billion yuan, a year-on-year increase of 20.8%. There were 218 million broadband users, and the penetration rate of mobaihe was 76.8%. The comprehensive ARPU of broadband increased from 37.7 yuan to 39.8 yuan, and the driving volume of broadband + smart home increased; 3) The market revenue of government enterprises was 137136 billion yuan, a year-on-year increase of 21.4%, the industry cloud revenue was 19.2 billion yuan, a year-on-year increase of 110%, the IDC revenue was 21.6 billion yuan, a year-on-year increase of 33%, the externally available racks were 407000, and the ICT revenue was 14.4 billion yuan, a year-on-year increase of 35.2%. The government enterprise business is expected to maintain rapid growth under the digital economy; 4) The revenue of emerging markets was 30.331 billion yuan, with a year-on-year increase of 34.2%. International business, digital content and Internet Finance continued to develop rapidly.
Capital expenditure increased moderately, 5g, computing power and other continued investment to build the core support of the digital economy.
Capital expenditure increased slightly. It is planned to invest 185.2 billion yuan in capital expenditure in 2022, with a year-on-year increase of 0.9%. 5g related investment of 110 billion yuan basically decreased slightly. 3700005g base stations are planned to be built in 22 years, an increase compared with 340000 stations in 21 years, of which about 280000 stations will be built in 700m, an increase compared with 200000 stations in 21 years. The computing power network plans to invest 48 billion yuan to implement the deployment of the East West computing project, and plans to increase about 43000 available racks.
Raise the dividend rate and share the development achievements with shareholders.
The dividend payout per share will be increased from the current dividend yield of HKD 202406 to about HKD 202406, which is about 60.5% of the dividend yield per share in 2020. At the same time, the company plans to gradually increase the dividend payout rate to more than 70% by 2023. With the growth of profits, the dividend per share is expected to continue to grow rapidly.
Investment advice and profit forecast
The fundamentals of C-end business are all good, ARPU value rises steadily, and 5g penetration continues to grow. The growth of b-end business is accelerated, and the core advantages of network resources, technology reserve, talent team and data security are brought into full play in the field of industrial digitization and 5g application. Due to the company’s continuous investment in 5g, government enterprises and other businesses, the net profit attributable to the parent company in 22-23 years is adjusted from 128.1 billion yuan and 148.5 billion yuan to 125.8 billion yuan and 140.9 billion yuan respectively. It is estimated that the net profit attributable to the parent company in 24 years is 164.7 billion yuan, corresponding to 11 times of P / E in 22 years and 10 times of P / E in 23 years and 1.17 times of P / E in 23 years. The “buy” rating is reiterated.
Risk warning: the price pressure of industry competition is higher than expected, the progress of new business is not as expected, the impact of the epidemic is higher than expected, and the policy risk