Why can China Mobile return to A shares?
1. The network is huge and profitable.
As the largest and most powerful leading enterprise among the three major operators, China Mobile has proved its undoubted intrinsic value to the market, both in terms of the largest market scale in the world and the leading profit level in the same industry. Therefore, investors' enthusiasm for China Mobile's stock issuance is also rising. The effective subscription multiple of online issuance is 805.68 times (including over-allotment), which is the highest subscription multiple of non-financial enterprises/KLOC-0.00 billion IPO projects in the history of A-share main board. As a high-quality long-term allocation target, China Mobile has been fully affirmed by shareholders.
For individual users, in the first three quarters of 20021,the number of mobile users increased by 1379, which far exceeded market expectations; At the end of September, there were 331000000 users of 5G packages and 0/600000 users of 5G networks, an increase of about 30% compared with the previous quarter, and 5G services continued to grow rapidly. For home users, the total number of cable broadband users reached 235 million, with a net increase of 25.03 million in the first three quarters of 2002/kloc-0, which has exceeded the whole year of last year.
For government and enterprise users, from 2002/KLOC-0 to September, China Mobile's DICT business income in the government and enterprise market reached 48.9 billion yuan, which continued to maintain rapid growth. Stable and strong profitability has also brought high-quality long-term returns to shareholders. In 20021year, China Mobile paid an interim dividend of HK$ 1.63 per share, up 6.5% year-on-year. China Mobile has long been committed to creating rich investment returns and greater shareholder value for investors.
2.5G technology is profound.
From "3G breakthrough" to "4G synchronization" and then to "5G leading", China Mobile has always been the "vanguard" in the innovative development of China's mobile communication industry and the "leader" in the coordinated development of the whole mobile communication industry.
In the innovation of 5G technology, China Mobile has formed six key technical directions: new frequency band, new antenna, new architecture, new design, new capability and new transmission. In the formulation of 5G core network standards, China Mobile played a key role in the subversive innovation of the integration of CT and IT, and proposed a service-based (SBA) network architecture. In the process of standardization of 5GR 16, which was frozen in 2020, China Mobile submitted more than 3,000 technical proposals, accounting for more than 30% of the total number of global operators' proposals, and took the lead in establishing 27 projects and formulating 15 technical standards. China Mobile is still the main force to standardize 5GR 17 which will be frozen in June 2022 and 5GR 18 which is under discussion.
3. The "friend circle" of the digital economy is growing.
It is understood that in this strategic placement, national investment platforms such as social security fund, national fund, Guo Xin investment, integrated circuit fund, china-africa development fund and Chinese investment fund were allocated1.465438 billion shares, accounting for 33.33%. On the one hand, this placing result reflects the affirmation of China Mobile's position in the national development strategy by SDIC platform, and on the other hand, it fully proves that China Mobile is a high-quality target that conforms to the stable investment style of SDIC platform.
China Mobile's corporate attributes of high dividend and low valuation can closely match the demand for insurance funds, and the active participation of insurance funds can also help China Mobile to stabilize its share price and reduce irrational fluctuations caused by speculators to some extent.
With this A-share listing, China Mobile will further build a top-level digital economy "circle of friends", "circle of relatives" and "ecological circle". China Mobile's leading edge in the 5G field and its layout in many innovative technology fields will also accelerate the company's transformation and upgrading to an innovative information service technology company. In the future, with the construction and performance realization of this IPO project such as 5G business, Smart China and Compute Network, it will bring a broader imagination space for the performance of China Mobile after listing.
In a word, the successful listing of China Mobile in A-share market is a landmark event. For China's capital market, as the first red-chip stock on the main board, China Mobile's return to A-share market will help to strengthen the overall strength of blue-chip stocks in A-share market, form a linkage effect with high-priced technology stocks in A-share market, and act as the cornerstone in A-share market. For China Mobile, it will help it build a new cooperation mechanism with complementary functions, benign interaction, resource sharing and financing development, accelerate the in-depth layout of digital intelligence, prosper the cooperation ecology of digital intelligence, and share digital dividends with shareholders, customers and industries.