China-Singapore Jingwei, January 5 (Fu Jianqing) On the second day of the market opening in 2022 (January 5), "Big Mac" China Mobile officially returned to A shares.

The amount of funds raised may hit a new high in more than ten years, and the net profit may be ranked in the top ten of A shares

　　On December 22, 2021, China Mobile launched offline and online purchases. It is estimated that the fundraising scale before and after the "green shoes" is fully exercised will be 48.695 billion yuan and 56 billion yuan respectively.

　　According to China-Singapore Jingwei, if calculated based on the 56 billion yuan of funds raised after the "green shoes" are fully exercised, China Mobile's fundraising amount ranks fifth in A-shares, second only to Agricultural Bank of China, China Petroleum, China Shenhua, and China Construction Bank.

Since Agricultural Bank's listing date is July 15, 2010, this also means that China Mobile's fundraising may hit a new high in more than ten years.

　　In terms of performance, according to the prospectus, in the first three quarters of 2021, China Mobile's revenue was 648.63 billion yuan, a year-on-year increase of 12.92%; net profit was 87.88 billion yuan, a year-on-year increase of 6.59%.

　　In terms of net profit in the first three quarters, China Mobile ranked first among the three major operators, far exceeding 12.926 billion yuan and 23.436 billion yuan of China Unicom (A shares) and China Telecom (A shares).

Even among all the listed A-share stocks, China Mobile can still rank in the top ten, ranking eighth only after PetroChina.

　　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 and enterprises, and emerging markets.

As of the end of June 2021, in the personal market, the company’s mobile customers reached 946 million, and the number of 5G package customers reached 251 million; in the home market, the company’s home broadband customers reached 205 million, and "Mobaihe" customers reached 154 million. In the government and enterprise market, the company's government and enterprise customers reached 15.53 million, a year-on-year increase of 37.56%; in emerging markets, the company expanded the space for new development of information services, focusing on international business, digital content and mobile payments and other emerging areas.

　　From the perspective of revenue share, in the first half of 2021, personal business is still the most important source of revenue, accounting for nearly 65%; emerging market revenue is relatively small, accounting for less than 4%.

　　Source: China Mobile Prospectus

　　China Mobile predicts that 2021 annual revenue will be 844.877 billion yuan to 852.558 billion yuan, a year-on-year increase of about 10%-11%; net profit attributable to parent companies will be about 114.307 billion yuan to 116.464 billion yuan, a year-on-year increase of about 6%-8%.

There is a price difference with Hong Kong stocks, and there is a break risk?

　　China Mobile's return to A has always received strong attention from investors.

　　Gao Yuyang, chief analyst of the TMT communications industry at Southwest Securities, told Sino-Singapore Jingwei that China Mobile's return to A is a milestone event in the communications sector, which has a certain boost to the entire sector.

This time, new channels for equity financing in the domestic market have been added, and relevant companies in the upstream of the industrial chain will benefit from their operations.

　　However, at the end of 2021, investors tend to be more rational and new stocks are breaking more.

On December 27, 2021, China Mobile disclosed an announcement on the results of the initial public offering of shares. The unpaid subscription amount of online investors was 743 million yuan, setting a record for the highest abandonment of A shares.

　　At the same time, China Telecom's road back to A is also vivid.

　　On August 20, 2021, China Telecom returned to the first day of listing on A. The issuance price of 4.53 yuan per share was flat at the opening and began to rise before midday. It closed up 34.88% on the same day.

Subsequently, China Telecom lowered its limit for two consecutive days and continued its downward trend since then.

As of the close of trading on January 4, the company's stock price was reported to be 4.38 yuan per share, still falling below the issue price.

　　It is also worth noting that there is a price difference in China Mobile's AH shares.

As of the close of January 4, China Mobile’s H shares were quoted at HK$48 per share, while the issue price of A shares was 57.58 yuan per share, which is not a small gap.

However, after the trading hours on January 4, China Mobile announced on the Hong Kong Stock Exchange that in view of the completion of the company’s RMB share issuance, the company plans to return to the The purchase authorization is to repurchase Hong Kong stocks on the Hong Kong Stock Exchange.

The number of repurchased Hong Kong shares does not exceed 2.048 billion Hong Kong shares, which is equivalent to not more than 10% of the total number of Hong Kong shares issued by the company on the day of the 2021 AGM. The Hong Kong shares repurchased will be deemed to be cancelled at the time of the repurchase.

　　Gao Yuyang believes that market sentiment is ever-changing, and China Mobile has the possibility of breaking.

However, domestic operators play a more important role in supporting the state-owned economy and supporting the development of related companies in my country's communications industry chain.

In the long run, domestic operators are high-quality core assets, are scarce targets in the investment field, and are profitable and have high dividend rates, making them suitable for long-term investment.

(Zhongxin Jingwei APP)

(The opinions in the article are for reference only and do not constitute investment advice. Investment is risky, and you need to be cautious when entering the market.)

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