On the second day of the opening of the market in 2022 (January 5), China Mobile announced that it was officially listed on the main board of the Shanghai Stock Exchange, with the company's securities code of 600941, the issue price was 57.58 yuan / share, and the price-earnings ratio was 12.09 times. Today's China Mobile opened at 63 yuan / share, opening 9.41% higher.
Yang Jie, chairman of China Mobile, said that on October 23, 1997, China Mobile was issued and listed on the Hong Kong Stock Exchange, becoming the "first overseas listing of central enterprises". Today, China Mobile landed on A-shares, becoming the "first red-chip company to return to the A-share main board listing", which is another milestone in the development process of China Mobile, marking the successful construction of China Mobile's domestic and foreign capital operation platform, laying a solid foundation for the company to promote digital and intelligent transformation and accelerate high-quality development.
"China Mobile will continue to work hard, move forward courageously, strive to create a new situation of high-quality development, and become an excellent listed company with long-term investment value in the A-share market!" Yang Jie stressed.
The amount of fundraising may reach a new high in more than ten years
China Mobile is the world's leading communication and information service enterprises, committed to providing a full range of communication and information services for individuals, families, government and enterprises, emerging markets, and is a technology leader and innovation promoter for the development and growth of China's information and communication industry.
As of the date of signing of the Prospectus, China Mobile BVI directly holds 14,890,116,842 shares of the Company, accounting for 72.72% of the total number of issued shares of the Company, and is the controlling shareholder of the Company.
China Mobile Group, through its wholly-owned subsidiary China Mobile (Hong Kong) Group, holds 100% of the shares of China Mobile BVI and is the actual controller of the Company.
According to the data, as of the first half of this year, China Mobile's asset scale exceeded 1.7 trillion yuan, the total number of base stations reached 5.28 million, covering more than 99.5% of the country's population, 4G base stations accounted for about 30% of the world, 5G base stations accounted for about 35% of the world; served 950 million mobile users, more than 200 million home users, more than 15 million government and enterprise users, with 980 million Internet of Things intelligent connections, the total connection scale of the world's first; continuous years of net profit of more than 100 billion yuan, net profit margin, The return on total assets ranks first among the world's leading telecom operators.
The sponsors of China Mobile's listing are CITIC Securities Co., Ltd. and China International Capital Corporation Limited. The company raised 48.695 billion yuan, which will be used for 5G boutique network construction projects, cloud resources new infrastructure construction projects, gigabit smart home construction projects, smart middle office construction projects, new generation information technology research and development and digital intelligence ecological construction projects.
The three major operators gathered in the A-share market
Before China Mobile announced its return to A-shares, China Telecom announced its return in early March 2021. Previously, China Unicom has been listed on the main board of the Shanghai Stock Exchange, and This time China Mobile and China Telecom have successfully "returned to A", and the three major operators have officially gathered in the A-share market.
Behind the "return to A" of operators, it is related to the delisting and delisting of the three major operators in the Us stock market due to the US executive order. On December 31, 2020, EST, the New York Stock Exchange announced that it has launched the delisting process for China Mobile, China Telecom and China Unicom. On the evening of May 7 this year, the three major operators issued announcements that the New York Stock Exchange maintained the delisting decision, and the company would be delisted from the United States, but the impact of delisting was minimal.
On March 25 last year, at the 2020 annual earnings conference call, Yang Jie, chairman of China Mobile, said in response to the rumors of "back to A" that "back to A" is conducive to the development of the company, and will also enable customers to have more opportunities to share the benefits of the company's growth and development. Today, the relevant work has been completed, and China Mobile has officially listed on the A-share market.
China Mobile does not have the risk of a break
China Mobile is listed today, and whether it breaks has become the focus. Looking back a few months ago, China Telecom's way back to A is also vividly remembered.
On August 20, 2021, on the first day of China Telecom's return to A listing, the issue price of 4.53 yuan per share was flat at the opening, and began to rise before noon, closing up 34.88% on the same day. Subsequently, China Telecom fell for two consecutive days, and since then it has also continued its downward trend. As of the close of trading on January 4, the company's stock price was quoted at 4.38 yuan per share, still falling below the issue price.
C114 believes that China Mobile does not have a risk of breaking.
As the largest telecom operator in China, as well as the telecom operator with the largest number of customers in the world and the top market capitalization ranking, China Mobile has a rare industry position. Since its establishment in 1997, China Mobile has always been committed to promoting information and communication technology services to economy, society and people's livelihood, and after more than 20 years of continuous development, it has gradually grown into a telecommunications operation enterprise with the largest network scale, the largest number of service users and leading profitability in the world.
No matter from the perspective of volume, performance and strategic investors, China Mobile is an A-share giant. At the same time, China Mobile's return has been supported by 19 strategic investors. From the perspective of strategic investor structure, "national team" investors such as the National Social Security Fund, China State-owned Enterprise Structural Adjustment Fund Co., Ltd., and Guoxin Investment Co., Ltd. subscribed a total of 141 million shares, accounting for 33.33% of the total amount of strategic placement, becoming the "main force" of China Mobile's strategic placement of A-share issuance.
More importantly, China Mobile's IPO has a green shoe mechanism, which can effectively protect the issue price; at the same time, the issue price determined by China Mobile is 57.58 yuan per share, corresponding to a price-earnings ratio of 12.02 times, which is significantly lower than China Unicom's price-earnings ratio, so that the pricing leaves enough valuation space for subsequent stock prices. In addition, the price of China Mobile Hong Kong stocks is HK$47.5, and the price comparison of A/H is relatively reasonable.
In terms of the "dividend" ability that investors are most concerned about, China Mobile has paid dividends of more than HK$1 trillion since the listing of Hong Kong stocks, with annual cash dividends of more than 57 billion yuan in the past three years, with an average dividend rate of more than 50%. In addition, China Mobile's dividend yield has gradually improved, with a dividend yield of 7.44% in 2020, ranking among the best in both Hong Kong stocks and large A-share companies. The 2021 interim dividend per share was HK$1.63, representing a year-on-year increase of 6.5%.
It is foreseeable that after China Mobile lands on A-shares, its dividend-sharing ability will not be inferior among a number of A-share listed companies. Given China Mobile's net cash flow of 161.6 billion yuan in the first half of the year and the rising level of dividend per share, the value of its long-term investment is self-evident. C114 Communication Network Lesi