There are indications that China Tower is not only expected to become the largest IPO of Hong Kong stocks in 20 18, but also the most quality target that should not be missed in the capital market in 20 18.
Tower assets sought after by the global capital market
The operation mode of "the tower assets are owned by the third party independently and enjoyed by the major operators" pursued by China Tower is based on the United States, which, as the cradle of the tower mode, has formed a mature market competition pattern early, and there are also pioneers such as the American Tower, Guancheng International and SBA Communication who are connected with the capital market. Judging from the stock price trend of the above three listed companies, the trend of individual stocks of the tower enterprises is far stronger than that of the broader market, which shows that the assets of the tower are warmly sought after by the capital market.
After listing, the stock prices of the three major American tower companies are far stronger than the broader market. Source: Founder Securities
The reason is that the Tower Company invested a lot of money in the construction of tower assets in the early stage, which proved the capital strength of the Tower Company itself and also constituted the biggest capital security guarantee for investors.
In addition, influenced by many factors, such as policy, administration, geography, environment, population, experience of employees, etc., the iron tower industry is easy to form an oligopoly and bring huge profits to enterprises due to scale effect.
In fact, even the iron tower company with low market share will have abundant cash flow as long as it can gain a firm foothold in the industry. Because tower companies often sign long-term lease contracts with high-quality enterprises, the later operation and maintenance costs are very low (electricity and land rent are borne by users). If there is no big investment in the later operation of the company, it is basically a high net inflow.
After the establishment of 20 14 China Tower, it acquired all the tower resources owned by the three major domestic telecom operators and became the largest communication tower infrastructure service provider in the world. According to the statistics of Sullivan in yost, the site resources of China Tower cover 3/kloc-0 provinces, municipalities and autonomous regions in China, accounting for 96.3% of the market share of China Tower. Even if it competes with the three American tower companies on the same stage, the China Tower will not give up too much, not to mention its oligopoly position in China.
There is a lot of room for improvement in the enjoyment rate of domestic iron towers.
As China Tower provides tower resources to domestic operators for a fee, the availability of tower resources determines the revenue of China Tiete. In the iron tower industry, the utilization rate of iron tower resources is measured by the enjoyment rate.
At present, the enjoyment rate of American iron tower is 2.5, Indian iron tower is 2.0, and China iron tower industry is only 0.7 by the end of 20 16. It can be seen that the enjoyment rate of * * * in China is still at a low level, and there is still a lot of room for improvement. In fact, since the establishment of the China Tower, the domestic tower resources have grown rapidly, from less than 20% to 70% in just two years, and this figure will be further improved in the future.
On the one hand, the technology of the communication industry is constantly upgrading, and each operator will only have more and more equipment hanging on the tower. For example, in the 4G era, in addition to doubling the 2G/3G era, the tower has to hang RRU.
On the other hand, the China Tower is constantly pushing the * * * tower resources in the industry to cross-industry enjoyment. Communication equipment, meteorological monitoring equipment, satellite receiving equipment can be hung on the tower, and even cameras can be hung as monitoring equipment, and high-voltage lines can be connected as part of the power grid ... and so on.
At present, China Tower has reached cooperation with more than ten industries such as environmental protection, earthquake, public security, agriculture, forestry, meteorology, electric power, maritime affairs, railways, real estate, radio and television networks. With more and more diversified equipment installed on the tower, it is only a matter of time before China Tower catches up with or even surpasses the United States, and the improvement of * * * enjoyment rate will eventually be reflected in the improvement of revenue and profit margin.
It is worth mentioning that in order to ensure the efficient utilization of the tower resources, about 60% of the funds raised by this listing of China Tower will be used for the new construction and renovation of the tower, which will be the premise and foundation for improving the enjoyment rate of the tower. The remaining 30% is expected to be used to repay bank loans that have been used for capital expenditure and working capital; About 10% is expected to be used for working capital and other general enterprise purposes.