The “Digital Economy National Team” has made another big move.China TelecomversusHualu GroupThe restructuring of the two major central enterprises was approved.

With the implementation of the restructuring of the two, the total number of central enterprises supervised by the State Assets Administration Commission will change from the previous 98 to 97.

And the “holding hands” between the two parties,It will also involve 19 listed companies, with a total market capitalization exceeding 600 billion yuan.According to statistics, Hualu Group and China Telecom have 1 listed company and 18 listed companies respectively.

Affected by the news, the listed companies owned by the two have surged one after another today. Among them, Yihua once surged more than 18% in the intraday period, and is now up 11% to 39.6 yuan. The stock price hit a new high since the beginning of September, with a total market value of 26.3 billion yuan.

The “Big Mac” of the digital industry

On November 23, according to information from the State Council, China Electronics Technology Group Co., Ltd. (“China Telecom”) and China Hualu Group Co., Ltd. (“China Hualu”) and China Hualu Group Co., Ltd. (“China Hualu”) implemented a restructuring, and China Hualu Group Co., Ltd. became a holding subsidiary of China Electronics Technology Group Co., Ltd. and is no longer an enterprise for which the State Council's State-owned Assets Administration Commission performs funder duties.

Last night, Yi Hualu, the only listed company under Hualu Group, also announced that the actual controller would change from Hualu Group to China Telecom. After the restructuring is completed, there will be no change in the share ratio of Hualu Group directly or indirectly held in the company.

This restructuring is a powerful alliance.

It is reported that it was founded in 2002China Telecom Department is a wholly state-owned companyIt is China's main military electronics force, the national network information industry team, and the country's strategic scientific and technological force.

The company has a relatively complete scientific and technological innovation system in the field of electronic information, and occupies a dominant position in technology in the fields of electronic equipment, network communication systems, industrial infrastructure, and network security.

Currently, China Telecom has more than 700 enterprises and institutions, including 47 national research institutes and 17 listed companies; it has more than 200,000 employees, of which 55% are R&D personnel; and 41 national key laboratories, research centers, and innovation centers.

By the end of 2022, China Telecom had total assets of 594.169 billion yuan, total liabilities of 293.02 billion yuan, operating income of 375.674 billion yuan, net profit of 29.075 billion yuan, and net profit of 17.93 billion yuan.

Chinese HualuEstablished in June 2000, it is a large-scale enterprise group directly managed by the State Assets Administration Commission specializing in the development, production, marketing, service and system integration of digital audio and video, electronic information, and cultural and creative industries.

In fact, as early as April of this year, Yi Hualu announced that Hualu Group, the actual controller, is planning restructuring matters with China Telecom, and that Hualu Group plans to integrate into China Telecom. After a lapse of more than 7 months, the restructuring was finally officially implemented.

In response to this, analysts believe that the integration of Hualu Group into China Telecom is an important step in the professional integration of central enterprises and a major move in the digital economy. There is a strong correlation between the two core businesses, and integration will be a major benefit to the entire credit and innovation industry and the digital economy.

Here is the list of listed companies involved

The restructuring of China Telecom and Hualu Group will involve 19 listed companies, including 18 A-share listed companies.

Currently, there is only one listed company under Hualu Group — Yi Hualu. The company mainly provides data element resourcification and capitalization services based on a data lake. Currently, its main business includes three segments: digital economy infrastructure, government and enterprise digitalization, and data operation services, accounting for 50%, 38%, and 12% of revenue in 2021, respectively.

Domestic and overseas listed companies owned by China Telecom(Shares with equity interest amount to or exceed 5% of the company's issued shares)There are a total of 18; of these, 17 are A-share listed companies.Hikvision is its only company with a market capitalization of 100 billion dollars, with a market capitalization of 334.5 billion yuan.

Specifically, they include Putian Technology, Taiji Co., Ltd., Electric Network Security, Electronics Digital, and Sichuang Electronics), China Porcelain Electronics, Electronics Chips, Tianao Electronics, Dongxin Heping, Oriental Communications, Siwei Technology, Hikvision, Phoenix Optics, Guobo Electronics, Guorui Technology, Ning Communications B (200468.SZ), Fluorite Network, and Rice Information.

As of the close of trading on November 23, the total market value of the 17 A-share listed companies in the CLP Department was 582.258 billion yuan. In the first three quarters, the company achieved total operating income of 97.797 billion yuan and net profit of 11.207 billion yuan. According to wind data, according to the distribution of tradable share capital, the total number of shareholders is 923,400.

With the merger of China Hualu into China Telecom, it is expected to promote the further development of digital industrialization.

Huacheng Securities believes that Hualu Group and China TelecomIt has good business synergy in the fields of digital economy infrastructure, digital economy applications, and data security industries.

According to China Telecom's official website, China Telecom owns listed companies such as Hikvision and Taiji Co., Ltd., and is expected to form good business collaboration with Hualu Group. Furthermore, the successful integration of Hualu Group into China Telecom will further expand the scale of China Telecom, and the combined market advantages of R&D will help enhance the Group's strategic position.

Shen Wan Hongyuan's analysis points out that China Telecom already has basic software, system integration, and cybersecurity capabilities in the field of information and innovation. Completing the restructuring of Hualu Group will enrich its data operations and government and enterprise service capabilities and form a more complete solution.

In particular, Yi Hualu, a subsidiary of Hualu Group, innovated the “data bank” model in the context of data element capitalization, realized authorized operation of government data, and provided standardized API products and data platform development and operation services. The business model has been verified, and it is expected that more regional government data will be covered and operated in the future. China Telecom is expected to enrich data lines,Build a “leading team” for innovation.