It has been more than half a month since China Mobile's A-share listing. In recent trading days, the company's share price has closed near the issue price of 57.58 yuan / share, which makes China Mobile's major shareholders determined to stabilize the price.
on January 23, China Mobile (600941) announced that the actual controller, China Mobile Group, plans to increase its holdings of A-Shares of the company by no less than 3 billion yuan and no more than 5 billion yuan.
Specifically, China Mobile Group has increased its holdings of 12.322 million A-Shares of China Mobile on January 21, with an increase amount of about 710 million yuan. The above increase plan will continue until the end of this year. The reporter noted that on the eve of returning to a, China Mobile also reiterated its plan to repurchase listed shares of Hong Kong stocks.
Before 2020, the growth of China's operator industry was weak. Now, this situation has improved. Tianfeng Securities Co.Ltd(601162) in the recent report, it is pointed out that the fundamentals of China Mobile are all good, the ARPU value has rebounded steadily, and the 5g penetration rate has continued to grow; 5g applications, government enterprises and emerging businesses give full play to their core advantages such as network resources and technology reserves to promote the sustained and accelerated growth of 2B / 2G business.
plans to increase holdings by 3-5 billion yuan
According to the announcement of China Mobile, on January 21, China mobile group increased its holdings of 12.322 million A-Shares of China Mobile through the trading system of Shanghai Stock Exchange, with an increase of about 710 million yuan, accounting for about 0.058% of the total issued shares of the company (before exercising the over allotment option) and about 1.457% of the total issued A-Shares (before exercising the over allotment option).
Before the above increase, China Mobile Group indirectly held 14.89 billion Hong Kong shares of China Mobile through China Mobile Hong Kong (BVI) Co., Ltd., accounting for about 69.837% of the total issued shares of China Mobile (before exercising the over allotment option). In addition, before this increase, China Mobile Group did not directly hold shares of China Mobile.
After the completion of the increase, in addition to the above indirectly held shares, China Mobile Group will directly hold 12.322 million A-Shares of China Mobile, accounting for about 69.895% of the total issued shares of China Mobile (before exercising the over allotment option).
China Mobile Group said that based on its firm confidence in the future development prospects of China Mobile and its high recognition of medium and long-term investment value, in order to effectively safeguard the interests of small and medium-sized investors and the stability of the capital market and boost the confidence of investors, the group will use its own funds to increase its A-share shares through the trading system of Shanghai Stock Exchange.
According to the plan of China Mobile Group, including the increased amount on January 21, the cumulative increased amount of this plan is not less than 3 billion yuan and not more than 5 billion yuan. The share purchase price range is not set in the share increase plan. In addition, due to the large scale of capital involved, China Mobile Group said that it would implement the share increase plan from January 21 to December 31 this year.
As mentioned above, China Mobile has approached the issue price for several consecutive trading days. On January 5, China Mobile landed on the main board of the Shanghai Stock Exchange. At the opening of the day, China Mobile opened 9.41%, and the closing increase fell back to 0.52%. However, on January 6, the second day of listing, China Mobile's A-share once touched the issue price of 57.58 yuan / share. At that time, more than one million hands paid for the protection at that price.
The reporter noted that in addition to increasing its holdings and stabilizing the price, China Mobile also offered a big move of repurchase. On the eve of the A-share listing, China Mobile reiterated that the company will repurchase the company's Hong Kong shares on the Hong Kong Stock Exchange after the exercise period of the over allotment option for the issuance of A-shares expires on February 7, 2022. in fact, the repurchase authorization was considered and approved as early as April last year, but the repurchase of Hong Kong shares was delayed due to catching up with the repurchase a plan; China Mobile plans to repurchase no more than 2.048 billion Hong Kong shares.
operator fundamentals have improved
Recently, the three major operators have released the operation data report for December 2021, and the data of each is not very bright. From the situation of China Mobile, the total number of mobile business customers in December reached 957 million, the net increase in December was only 109000, and the cumulative net increase in the whole year was 14.974 million; The total number of wired broadband customers reached 240 million, a net decrease of 459000 last month and a net increase of 29.785 million in the whole year.
Before 2020, the continuous implementation of policies such as raising speed and reducing fees will bring great pressure to the operation of operators. At the same time, the strategies such as obtaining customers at low prices within operators also make the industry competition more disordered, and the phenomenon of increasing income without increasing profit is very obvious. Since the last two years, the operator industry has gradually moved towards competition and cooperation. From the above user data, it can also be found that the individual user market has faced saturation, and the Growth Logic of the operator industry has changed from extension expansion to stock operation and stock tapping potential.
As far as China Mobile is concerned, the situation in the first three quarters of last year has reflected this change. In the first three quarters of last year, China Mobile's mobile service and broadband service ARPU increased, of which the mobile ARPU was 50.1 yuan, a year-on-year increase of 2.6%; Over the same period, the ARPU of wired broadband was 34.8 yuan, a year-on-year increase of 7.3%, and the comprehensive ARPU of home broadband was 39.8 yuan, a year-on-year increase of 10.7%.
According to the forecast previously released by China Mobile, the company's operating revenue in 2021 is about 844.9 billion yuan to 852.6 billion yuan, a year-on-year increase of about 10% to 11%; The net profit was about 114.3 billion yuan to 116.5 billion yuan, with a year-on-year increase of about 6% to 8%; The net profit after deducting non-profit was about 107.3 billion yuan to 109.3 billion yuan, with a year-on-year increase of about 5% to 7%.
In addition to tapping the potential of the C-end user stock, the main change in the operator's business operation is to transform to the b-end and expand the government enterprise business with the help of 5g and other digital tools. According to the data disclosed by China Mobile in the first three quarters of last year, the company continued to promote the integrated development of "cloud + Network + dict", the growth momentum of government enterprise market was strong, and the business revenue of dict reached 48.9 billion yuan, maintaining rapid growth.
Guosheng Securities pointed out that with the increase of 5g penetration rate in recent years and the end of the superposition speed-up and fee reduction policy, the ARPU value of China Mobile's mobile business has obviously warmed up. In terms of b-end business, the company provides 5g + aicde one-stop solution for enterprise customers based on 5g. B-end and C-end resonate, and the company's revenue is expected to continue to grow steadily.
With regard to price stabilization measures such as repurchase, Anxin International Securities believes that a large proportion of repurchase of Hong Kong shares is a measure to improve the original shareholders' rights and interests in the process of China Mobile's A-share listing; Guosheng Securities believes that the repurchase is expected to further thicken the company's earnings per share and dividends per share.
