Company profile

Mobil Development is one of the few suppliers of one-stop wireless communication antennas and radio devices in China, and its main duties include the design, construction, marketing and sale of base station skylines, launch subsystems and coverage of extended solution solutions. The company's market share of outdoor base station skyline and indoor distributed skyline ranks among the top three in the industry. The company sells products directly to Chinese and overseas suppliers, and also supplies products to some of the world's leading network solution suppliers.

Investment summary

Despite the listing to take advantage of the great development of 3G, in the intelligent era, the company's customer competitiveness in Asia has declined, and there has been a decline in the number of customers in the market. in addition, due to such factors as the intensity of market competition and the decline in the gross profit rate of clean-up stocks, the company's revenue and earnings have declined in 2011-2012, and it has even produced sales in 12 years.

However, the company's products are mainly used for communication operators, and we believe that they are very likely to seize the opportunity of re-growth in the context of the opening of the 4G era in China. The development of 4G has enabled this part of the business to account for more than 50% of the total investment, and the company's total development has also expanded rapidly before, and it has doubled in November. We believe that these negotiations are expected to continue. It is worth mentioning that the usage rate of 4G generation is different from that of 3G, and the same regional coverage requires more base stations and other equipment to be put into service. At the same time, MIMO technology makes it possible for a unit to equip one antenna cable into N, that is, the number of 4G base stations and 3G base stations has increased, which is also due to more increments for suppliers such as Moto.

China is still making great efforts to expand its economic relations with countries or regions such as South Africa, and coupled with the high comparison of Chinese products, we believe that overseas corporate relations are expected to improve in the future.

The company's profitability is expected to improve in the future, due to a larger proportion of size efficiency and 4G products, and a decline in usage share.

Since the listing, the company's valuation has been low, and the price-to-price ratio has been as low as 0.36. We believe that the company's valuation is expected to return to normal levels under the new market opportunities and volatility. We give it 0.9 times the 13-year par valuation of HK $1.48 per share, which is an increase in holdings.