A powerful force that cannot be ignored – industrial capital is intensively selling to increase or repurchase, and the A-share market may have entered the valuation range recognized by industrial capital.
On March 8, Haier Smart Home Co.Ltd(600690) , Zhejiang Hangmin Co.Ltd(600987) , Zhejiang Dingli Machinery Co.Ltd(603338) , Betta Pharmaceuticals Co.Ltd(300558) and other companies disclosed the share increase plans of shareholders or senior executives, and 360 Security Technology Inc(601360) , Zhejiang Chint Electrics Co.Ltd(601877) also disclosed the share repurchase implementation plans, all of which are planned to be repurchased quickly in the next three days.
There are also listed companies that just disclosed their holdings increase or repurchase plan the day before and couldn’t wait to start the next day. On March 7, Yutong Bus Co.Ltd(600066) announced that the controlling shareholder planned to increase its holdings by 100 million yuan to 200 million yuan Xinfengming Group Co.Ltd(603225) disclosed the repurchase plan and planned to repurchase 150 million yuan to 300 million yuan. On March 8, Yutong Bus Co.Ltd(600066) controlling shareholders increased their holdings by 2230000 shares (at a cost of 1987 million yuan), and Xinfengming Group Co.Ltd(603225) repurchased 798000 shares (at a cost of 9.79 million yuan).
In the past two days, with the decline of the market, the cases of increasing holdings and repurchase of industrial capital have increased significantly. The increase or decrease of industrial capital often becomes one of the key wind vanes of the A-share market. As “insiders”, industrial capital has a better understanding of the company’s operation. At this time, frequent selling not only means a high recognition of the company’s own value, but also plays an important role in improving investor confidence and stabilizing the market.
real gold and silver escort
With the continuous decline of share prices, industrial capital, as one of the important forces to stabilize market confidence, is taking the lead in increasing holdings or repurchase, and the selling action is becoming more and more frequent, which has injected a booster into the market.
On March 8, the leading household appliance enterprise Haier Smart Home Co.Ltd(600690) announced that Renhai Chuangzhi, the concerted action of Haier Group, the actual controller of the company, increased its holdings of 6.4 million A-Shares of the company on March 8, with an increase of 145 million yuan. Based on the confidence in the long-term development of China’s capital market and the business prospects of the company, haichuangzhi plans to increase its holdings by no less than 200 million yuan and no more than 350 million yuan (including the shares increased this time) in the next six months. In the secondary market, Haier Smart Home Co.Ltd(600690) share price has fallen for five consecutive trading days, with a cumulative decline of 25% this year.
That night, Zhejiang Hangmin Co.Ltd(600987) announced that Hangmin group, the controlling shareholder of the company, increased its holdings by 1 million shares on March 8. Based on its confidence in the company’s sustainable and stable development in the future and recognition of its long-term investment value, Hangmin group plans to increase its holdings with its own funds within 6 months from March 8, with an increase of no less than 10 million shares and no more than 15 million shares, The proportion of increased shares shall not be less than 0.95% of the issued shares of the company and shall not exceed 1.43% of the issued shares of the company.
Zhejiang Dingli Machinery Co.Ltd(603338) announcement: Based on the confidence in the future development prospect of the company and the recognition of the long-term investment value of the company’s shares, Liang Jin, Secretary of the board of directors of the company, plans to increase the company’s shares by no less than 8 million yuan and no more than 10 million yuan.
Betta Pharmaceuticals Co.Ltd(300558) also announced that Ding Shizhe, the immediate relative of Ding lieming, the actual controller, chairman and CEO of the company, plans to increase the cumulative holdings of Shanghai Pudong Development Bank Co.Ltd(600000) to 1 million shares (including 544000 shares already increased on that day) through contractual private placement funds.
Hangzhou Great Star Industrial Co.Ltd(002444) announced that Li Feng, vice president of the company, increased his holdings of 40300 shares by means of centralized bidding on March 8. Li Feng said that he could not rule out the possibility of further increasing his holdings of the company’s shares in the future.
Beijing Bdstar Navigation Co.Ltd(002151) disclosed the share repurchase plan. Based on the confidence in the company’s future development prospects and high recognition of the company’s value, in order to increase investor confidence and further improve the company’s long-term incentive mechanism, the company plans to use its own funds to repurchase 150 million to 200 million yuan of shares for the implementation of the company’s equity incentive plan or employee stock ownership plan.
three days quick repurchase
It is worth mentioning that on March 8, the leading enterprise of network security 360 Security Technology Inc(601360) and the leading enterprise of industrial electrical appliances Zhejiang Chint Electrics Co.Ltd(601877) , at the same time, disclosed the announcement on the implementation arrangement of the share repurchase plan by means of centralized bidding, both of which plan to increase their holdings rapidly in the next three days.
360 Security Technology Inc(601360) said that based on the confidence in the company’s future development and recognition of the company’s value, in order to improve investor confidence, the company plans to repurchase no less than 90 million yuan and no more than 120 million yuan within the next three trading days (March 9 to March 11).
Zhejiang Chint Electrics Co.Ltd(601877) also said that based on the confidence in the company’s future development and recognition of the company’s value, in order to improve investor confidence, the company plans to repurchase no less than 50 million yuan and no more than 100 million yuan in the next three trading days.
In fact, both the plan and the plan have been disclosed before 360 Security Technology Inc(601360) disclosed in September last year that it plans to use its own funds of no less than 1 billion yuan and no more than 1.5 billion yuan to repurchase the company’s shares at a repurchase price of no more than 18.21 yuan / share, all of which will be used in the company’s employee stock ownership plan. As of February 28, 2022, the company has repurchased 61.69 million shares at a cost of 737 million yuan.
Zhejiang Chint Electrics Co.Ltd(601877) then disclosed the share repurchase plan at the beginning of November last year. It is planned to use its own funds or self raised funds to repurchase RMB 1 billion to RMB 2 billion by means of centralized bidding transaction, and all of them will be used to implement the employee stock ownership plan. As of February 28, 2022, the company has repurchased 18.79 million shares, with a total transaction amount of 940 million yuan.
forefoot disclosure, backfoot overweight
Some listed companies just disclosed the plan of increasing or repurchasing their holdings on March 7, and couldn’t wait to start the next day. The signs of protecting the market were very obvious.
On March 7, Yutong Bus Co.Ltd(600066) announced that based on the confidence in the future development prospects of the company and the recognition of the long-term investment value of the company’s shares, Yutong group, the controlling shareholder of the company, and its persons acting in concert, planned to increase the holdings by no less than 100 million yuan and no more than 200 million yuan in the next six months.
There is no price range for this increase. Yutong group will choose the opportunity to implement the increase plan based on the reasonable judgment of the company’s stock value and the fluctuation of the company’s stock price and the overall trend of the capital market.
On the evening of July 7, Xinfengming Group Co.Ltd(603225) disclosed the repurchase plan. Based on the confidence in the company’s future development and recognition of the company’s value, in order to safeguard the interests of the company and shareholders and establish and improve the company’s long-term incentive mechanism, the company plans to repurchase shares through centralized bidding transaction, with a total repurchase capital of no less than 150 million yuan and no more than 300 million yuan, and a repurchase price of no more than 18 yuan / share.
The next day, March 8, Yutong Bus Co.Ltd(600066) and Xinfengming Group Co.Ltd(603225) took out real gold and silver. On the same day, Yutong group increased its holdings of Yutong Bus Co.Ltd(600066) shares by 2226800 shares, with an increase of RMB 198668 million (excluding transaction costs) Xinfengming Group Co.Ltd(603225) implemented the first repurchase on the same day: 798100 shares were repurchased by centralized bidding transaction, with the lowest transaction price of 12.10 yuan / share and the highest transaction price of 12.35 yuan / share, and the total amount paid was 9.7889 million yuan.
The increase or decrease of industrial capital often becomes one of the key wind vanes of the A-share market. Some analysts believe that industrial capital, as an “insider”, can be called the group that knows listed companies best, and its behavior can often affect the market’s attitude towards the company’s share price. The increase of industrial capital is conducive to the trend of stock price after informing the market that the company has long-term value and stabilizing sentiment.
