At present, China Railway Tower (0788.HK), the world's largest provider of communication tower infrastructure services, entered the third day of the IPO. The issue was approximately 43.148 billion H shares, with an offer price ranging from 1.26 to 1.58 Hong Kong dollars. Shares, admission fee of 3,191.84 Hong Kong dollars. It is reported that the China Tower's IPO response is overwhelming. The international placement part has been oversubscribed. It is expected to be listed on the Main Board on August 8. It is expected to win this year's "Funding King".
Co-constructed shared site resources all over China China's iron tower industry is absolutely leading
The site is an important part of the construction of mobile communication networks. It is also the premise guarantee for further expansion and optimization of China's 4G network development and future implementation of 5G network deployment. Before 2015, due to the lack of comprehensive site sharing arrangements among communication operators, Communication operators carry out site construction according to their respective needs. In the same or nearer location, there are often repeated construction of multiple communication towers, or the problem of lower communication tower coverage in remote areas. Low resource utilization and high cost. The call for co-construction and sharing has risen, and the establishment of the Chinese Tower is particularly necessary.
After the establishment of China Tower, it has always used “sharing” as a foothold for business development, coordinating the mobile communication coverage needs of communication operators, and encouraging communication operators to use more sites in a shared manner. Site sharing can help communication operators reduce stations. The site uses the required cost and expands the network coverage in a shorter time. Nowadays, China Tower has the largest and well-located site resources in China, helping the rapid development of China's mobile communications industry and the implementation of China's “network power” strategy. According to public information, as of March 31, 2018, the site of China Tower has been located in 31 provinces, municipalities and autonomous regions across the country, covering all cities and vast rural areas, and has established an absolute leading position in the industry. "Where there are people, there are Chinese iron towers."
China's communications tower infrastructure market continues to grow, with great potential for future development
Adhering to the "shared, win-win" business model, China Tower provides sharing discounts for communication operators, and strives to improve the profitability of communication carriers while meeting the mobile communication coverage needs. Since its inception, China Tower has been prioritized for transformation and utilization. Site inventory resources, actively enhance the capacity of construction. With the site resources and sufficient installation space, China Tower's revenue growth after providing sharing discounts is still much higher than its cost increase, which can significantly improve its marginal profit and ensure steady growth of profitability. China Tower's prospectus shows that China Tower's operating income increased significantly from RMB 8,802 million in 2015 to RMB 68,665 million in 2017.
According to the Sullivan Report, China has the world's largest and fast-growing mobile communications subscriber base and is expected to reach 1.56 billion in 2022. Compared to other major mobile communications markets around the world, China's mobile subscriber penetration, 4G subscriber penetration The rate, especially the average annual mobile communication data traffic per user still has a lot of room for growth. It is expected that the scale of China Telecom Tower infrastructure market will increase from RMB 70.6 billion to RMB 109.1 billion in 2017-2022. The average growth rate is 9.1%. China Telecom Tower infrastructure service demand will benefit from the rapid development of the mobile communication market and continue to grow, China Railway Tower long-term can be expected.