since the share price has been lower than the adjusted net asset value per share for 20 consecutive trading days, on January 19, China Telecom Corporation Limited(601728) (601728) disclosed an announcement on the starting conditions for triggering measures to stabilize the share price.
It is disclosed that China Telecom Corporation Limited(601728) previously formulated the plan for stabilizing the company’s A-share price within three years after the initial public offering of RMB common shares (A shares) and listing of China Telecom Corporation Limited(601728) (hereinafter referred to as the “plan for stabilizing the stock price”), which was deliberated and adopted by the special general meeting of shareholders, the meeting of shareholders of domestic shares and the meeting of shareholders of H shares held on April 9, 2021.
According to the above plan for stabilizing the stock price, within three years from the date of the issuance and listing of the company’s a shares, if the closing price of the company’s A-Shares is lower than the company’s latest audited net asset value per share for 20 consecutive trading days, and in accordance with relevant laws and regulations for repurchase Under the premise of the provisions on share capital increase and other changes, the company and relevant subjects will start measures to stabilize the A-share price.
in this stock price stabilization plan, China Telecom Corporation Limited(601728) said that as of December 31, 2020, the latest audited net assets per share of the company was 4.491 yuan. On June 1, 2021, the company distributed 2020 cash dividend of RMB 0.104269 per share (before tax). The net capital raised by the company’s initial public offering of A-Shares was about RMB 47.516 billion. From December 22, 2021 to January 19, 2022, the closing price of the company’s shares has been lower than the adjusted net asset value per share for 20 consecutive trading days, which has triggered the starting conditions of the above measures to stabilize the stock price.
“According to the stock price stabilization plan, the company will determine specific stock price stabilization measures with the controlling shareholder China Telecom Corporation Limited(601728) Group Co., Ltd. within 10 trading days from the date when the conditions for the initiation of stock price stabilization measures are triggered (January 19, 2022), and complete relevant internal decision-making procedures and external approval / filing procedures (if necessary) After that, it will cooperate with relevant entities to implement such measures to stabilize the stock price, and will timely perform the obligation of information disclosure. ” China Telecom Corporation Limited(601728) scale.
According to the reporter of securities times · e company, before the above “plan for stabilizing stock price” was launched, the company’s controlling shareholder China Telecom Corporation Limited(601728) group had taken measures to stabilize stock price last year. At the expiration of the “green shoe mechanism”, on September 21 last year, China Telecom Corporation Limited(601728) group put forward a shareholding increase plan. The group plans to increase its shareholding in the company at an opportunity within 12 months from September 22, and the proposed shareholding increase amount is no less than 4 billion yuan; Referring to the purpose of the increase, China Telecom Corporation Limited(601728) group said at that time: “this increase is based on firm confidence in the company’s future development prospects and high recognition of the company’s investment value.”
It is worth noting that the above-mentioned increase plan was thrown out at the “full moon” of China Telecom Corporation Limited(601728) A-share IPO. After a brief rise on the listing day, the company’s share price hovered between 4.53-4.55 yuan / share (the issue price was 4.53 yuan) a week before the introduction of the increase plan. However, the shareholding increase plan did not bring more upward momentum to China Telecom Corporation Limited(601728) ‘s share price, except for a small increase of 2.21% the next day (September 22). Two trading days later (September 24), China Telecom Corporation Limited(601728) shares closed at 4.44 yuan / share, down 0.09 yuan compared with the IPO issue price of 4.53 yuan / share and 0.05 yuan compared with the net assets per share of 4.49 yuan at the end of 2020. On the night of the break, China Telecom Corporation Limited(601728) announced the operation of “green shoes”, and the lead underwriter China International Capital Corporation Limited(601995) has bought 6.255 billion yuan in the secondary market.
At present, investors are quite concerned about whether the stock price of China Telecom Corporation Limited(601728) can be stabilized again?
In this regard, there is no lack of optimism in the seller’s organization. In the research report released on December 20, 2021, Citic Securities Company Limited(600030) believes that the inflection point of China Telecom Corporation Limited(601728) has been established, and 2b business growth is good. At the 2C end, as of October 2021, the company’s mobile user scale has increased to 371 million, the 5g package penetration has increased to 45.4%, and the ARPU promotion trend has been established. At the 2H end, the company’s high-quality home width cooperates with the mobile network to provide new momentum in the smart home. At the 2B & 2G end, the company’s cloud network integration capability is leading, the security barrier is high, Tianyi cloud maintains rapid growth, and IDC business space is broad. We are optimistic about the continuous improvement of the company’s mobile business, the continuous breakthrough of smart home business and the rapid development of industrial digital business. It is expected to achieve better performance growth and roe improvement in the 5g era, and the cash flow and dividends are expected to be further improved.
Shenwan Hongyuan Group Co.Ltd(000166) when commenting on the company’s report for the third quarter of last year, it said that the company’s net increase in mobile communication business users was the industry leader, and ARPU increased steadily compared with the same period last year; Both fixed line business users and income increased, and the income of smart families increased by more than 30%; The 5g business model continues to mature, driving the growth of industrial digital revenue, and the government enterprise business continues to maintain the leading position in the industry. Considering the stable operation of the company in the first three quarters, the rapid growth of profits, the double improvement of revenue and user scale in traditional businesses, and the leading position of government and enterprise businesses, the Organization raised the company’s profit forecast.
