21st Century Economic Report 21 Financial App Li Wei Beijing Report
As an international telecommunications giant, Huawei is beginning to have more links with the domestic capital market.
The 21st Century Economic Reporter learns from many collectors that Huawei Investment Holding Co., Ltd. (hereinafter referred to as Huawei) is planning to issue a medium-term bill in the interbank market. The current issue scale is about 3 billion yuan, with a period of three years. The principal underwriter is Industrial and Commercial Bank of China, and the rating agencies are joint credit rating agencies with long-term main body. Credit rating and debt rating are AAA.
In fact, Huawei has previously issued bonds overseas, including two RMB dim sum bonds and four US dollar bonds. By the end of the first half of 2019, Huawei had a balance of 30.782 billion yuan in bonds payable.
With Huaweis domestic debt issuance plan, more details about Huaweis financial projects have also been disclosed in the market.
The prospectus shows that by the end of the first half of 2019, Huaweis net assets and total assets were 245.487 billion yuan and 705.716 billion yuan, respectively. During the four periods from 2016 to the first half of 2019, the operating income was 518.068 billion yuan, 598.488 billion yuan, 715.192 billion yuan and 396.538 billion yuan, respectively, while the net profit for the same period was 37.052 billion yuan, 47.455 billion yuan, 59.343 billion yuan and 34.904 billion yuan, respectively.
According to the data, Huaweis cash situation is very good. As of the end of the first half of 2019, its monetary fund reached 249.731 billion yuan. In the case of abundant money, Huawei also manages cash through financial products. By the end of the first half of 2019, Huaweis investment in bank financing and structured deposits amounted to 55.5 billion yuan, and the investment in monetary funds and bonds amounted to 14.399 billion yuan and 1.124 billion yuan, respectively, totalling more than 70 billion yuan.
The main body of the company has minimal risk of debt repayment, the ability to repay the current interim bills is very strong, and the risk of default is very low. But it also points out that the complex and changeable international political and economic environment, increasingly prominent trade barriers and trade restrictions increase, which bring certain uncertainties and potential costs to the companys global business.
According to the collectors, Huaweis plan to issue bonds in China is expected to be popular in the interbank market. As a well-known company, Huaweis fundamentals are very stable, business cash is good, and it is estimated that the ultimate issuance rate will be relatively low. A public offering collector said.