Since this year, with the periodic adjustment of the market, listed companies have set off a small wave of “repurchase and increase of holdings”. According to the reporter’s statistics, compared with last year, the cases of repurchase and increase of holdings of listed companies on the science and innovation board have increased significantly, which reflects the excellent business situation of the science and innovation board company from one side, and the value depression effect is obvious after a round of stock price decline.
Further dismantling the detailed data of repurchase and shareholding increase of Kechuang board company, it can be found that the companies implementing repurchase have three characteristics: the distribution of industries, the size of repurchase amount and the purpose of repurchase are the implementation of employee stock ownership or equity incentive; At the same time, most of the companies implementing the shareholding increase are the controlling shareholders or actual controllers who participate in the shareholding increase, and some are only increased by senior managers. The amount of shareholding increase promised by each company is also different.
Why did Kechuang board company frequently launch repurchase and increase holdings at this time? How does the company view the current stock price decline? What is the latest business situation of the company?
Referring to the announcement of Kechuang board company, we can roughly summarize the two main reasons for the implementation of repurchase or increase of holdings: first, to boost market confidence and reverse the decline of stock price; The second is to determine the ticket source for the subsequent implementation of equity incentive and reduce the incentive cost.
The person in charge of the science and innovation board company interviewed by the reporter generally replied that the short-term market fluctuation has large irrational factors, and the company’s fundamentals have not changed. In the future, the latest business information will be disclosed as much as possible at an appropriate time to boost market confidence in the way of “brightening the family background”.
Kechuang board current repurchase tide, involving multiple industries
After Wangan Longtou Qi An Xin Technology Group Inc(688561) released the repurchase plan on the evening of March 8, on the evening of March 9, Kechuang board Hangzhou Raycloud Technology Co.Ltd(688365) , Beijing Bayi Space Lcd Technology Co.Ltd(688181) also issued the announcement of share repurchase. The former plans to spend 20 million yuan to 40 million yuan to buy back shares for the implementation of employee stock ownership plan or equity incentive; The latter disclosed the company’s initial share repurchase on the 9th.
The previous day, Qi An Xin Technology Group Inc(688561) announced that it planned to spend 150 million yuan to 300 million yuan to buy back shares. The announcement clearly stated that the repurchase showed that the board of Qi An Xin Technology Group Inc(688561) directors agreed that the development potential and share price of the company were seriously underestimated, and fully expressed their long-term confidence in the strategic direction and business prospects of the company. At the same time, the repurchased shares will be used for the company’s employee stock ownership plan or equity incentive, which will help to improve the team cohesion, R & D ability and the company’s core competitiveness, improve the company’s business performance in the future, effectively combine the interests of shareholders, the company and employees, and promote the long-term, healthy and sustainable development of the company.
On the same day, Touchstone International Medical Science Co.Ltd(688013) announced that on March 8, 2022, the Company repurchased 41600 shares for the first time through the trading system of Shanghai Stock Exchange by means of centralized bidding, accounting for 0.05% of the total share capital of the company, and the highest price of repurchase transaction was 22.86 yuan / share.
The repurchase “army” of science and innovation board is accelerating its formation.
According to the reporter’s statistics, from January 1, 2022 to March 9, 2022, a total of 12 companies on the science and Innovation Board announced the share repurchase plan, and another 4 companies announced the share increase plan of controlling shareholders, actual controllers or directors, supervisors and senior managers, resulting in a “small wave” of stable confidence.
In the whole year of 2021, 11 Sci-tech Innovation Board companies issued repurchase plans. In contrast, in less than three months this year, the repurchase cases have exceeded that of last year.
What are the characteristics and commonalities of the buyback of Kechuang board this year?
First of all, the time for these companies to formulate repurchase plans is mainly concentrated in February and March, which matches the market adjustment; Industry distribution is diverse.
Secondly, the amount and scale of repurchase vary. If Qi An Xin Technology Group Inc(688561) , it will use its own funds of 150 million yuan to 300 million yuan to complete the repurchase, and Cansino Biologics Inc(688185) also promises that the repurchase amount will not be less than 150 million yuan; The rest is a small test. The amount promised for repurchase is no more than 100 million yuan, and the upper limit of stock repurchase proportion of enterprises with more than 60% is no more than 1%.
In addition, the purpose of repurchase is to implement employee stock ownership or equity incentive, and the company’s share price has a large decline before the announcement of the repurchase plan, of which Qingdao Haier Biomedical Co.Ltd(688139) also implements share repurchase and actual controller increase plan.
“The motivation for the current repurchase of Kechuang board company is, on the one hand, to boost market confidence and reverse the decline of stock price; on the other hand, to determine the ticket source and reduce the incentive cost for the subsequent implementation of equity incentive.” The person in charge of private equity fund who has long paid attention to the secondary market of science and Innovation Board analyzed it to reporters.
big wave shareholding increase plan is also on the way
In addition to share repurchases, plans to increase holdings of listed companies on the science and innovation board have also poured in.
On March 1, Beijing Sinohytec Co.Ltd(688339) disclosed the plan that the controlling shareholder, some directors, supervisors and senior executives and business and technical backbones planned to increase their shareholding in the company.
On March 3, Suzhou Zelgen Biopharmaceuticals Co.Ltd(688266) announced that the actual controller, some directors, senior managers and core managers of the company, based on their confidence in the future development of the company and their recognition of the long-term investment value of the company, plan to increase their holdings by no less than 18.8 million yuan and no more than 23.7 million yuan within six months from March 3.
On March 4, Qingdao Haier Biomedical Co.Ltd(688139) announced that the concerted action of Haier Group, the actual controller of the company, Renhai Chuangzhi, increased 83358 shares of the company by means of centralized bidding on March 3, 2022, and planned to continue to increase shares of the company by means of centralized bidding within 6 months from March 3, 2022, with the cumulative increase (including this time) of no less than 100 million yuan and no more than 200 million yuan.
For the reasons for the increase, Qingdao Haier Biomedical Co.Ltd(688139) said it was based on the confidence in the long-term development of China’s capital market and the business prospects of the company.
Statistics show that since this year, four Sci-tech Innovation Board companies have newly released their shareholding increase plans.
From the perspective of the increase subject, except that the increase subject of Beijing Sun-Novo Pharmaceutical Research Co.Ltd(688621) is only senior managers, the other three companies have controlling shareholders or actual controllers to participate in the increase.
In terms of the amount of increased holdings, the commitments of each company vary greatly Qingdao Haier Biomedical Co.Ltd(688139) increase in shareholding is the largest, no less than 100 million yuan Suzhou Zelgen Biopharmaceuticals Co.Ltd(688266) increased their holdings by about 20 million yuan, while Beijing Sun-Novo Pharmaceutical Research Co.Ltd(688621) and Beijing Sinohytec Co.Ltd(688339) promised to increase their holdings by about 10 million yuan.
From the perspective of the reasons for the increase, the main purpose is to make a large decline in the early stage and hope to boost the stock price. The share prices of the four companies fell by about 20% in January, and the company strengthened investor confidence by increasing its holdings.
In addition, the speed from the announcement to the completion of the shareholding increase plan of Kechuang board company is also improving rapidly. The “action efficiency” reflects the recognition of the stock price.
On March 1, Beijing Sinohytec Co.Ltd(688339) announced the plan of increasing shareholding. On March 5, Beijing Sinohytec Co.Ltd(688339) announced that as of March 4, Zhang Guoqiang, the controlling shareholder, chairman and general manager of the company, song Haiying, the director, deputy general manager and financial director of the company, Dai Dongzhe, the chairman of the board of supervisors, Yu Min, the Deputy General Manager, Kang Zhi, the Secretary of the board of directors, Mou Xiaojie, the manufacturing director, and Fang Chuan, the R & D director, had increased their holdings of 54558 shares of the company by means of centralized bidding transaction, It accounts for 0.08% of the total share capital of the company, with a total increase of 9.6815 million yuan.
The share increase plan has been implemented.
irrational decline highlights the value of high-quality companies
How does Kechuang board company view the current stock price decline? Does it reflect fundamental changes?
Jiang Rui, board secretary of Jingke energy, said in an interview with reporters: “after landing on the science and innovation board, Jingke energy is accelerating technology leadership and breakthrough.”
For the recent market fluctuations, Jiang Rui believes that there are multiple factors. “We should take a more rational view of China’s capital market, especially in China’s stable and sound economic development environment.” Jiang Rui said, “we still need to have confidence. We should not be affected by too much external environment or emotion, which will lead to market selling. We have confidence in the economy, the industry and the company.”
Tang Liming, Secretary of Sinocelltech Group Limited(688520) board of directors, holds similar views. He told reporters that the recent changes in the secondary market are short-term phenomena, do not change the fundamentals of the company, and do not affect the confidence and determination of all employees to the development of the company. The company is a long-term innovative enterprise. The company has overcome various difficulties, established a full chain R & D and production platform, established a fully independent R & D product pipeline, and pushed the products to the market step by step, gradually realizing the goal of making high-end biological drugs accessible to everyone.
Referring to the data, Sinocelltech Group Limited(688520) is mainly engaged in the research and development of innovative biological drugs and vaccines. The company’s first product restructuring eight factors was listed in 2021, which is the first similar product in China. The sales performance is gratifying. The sales performance in a single quarter of 2021 is more than 120 million yuan, which will contribute stable operating revenue to the company in the future. At present, the company has two products in the production reporting stage and seven products in clinical phase II / III. The clinical research is progressing smoothly and is expected to be introduced to the market in the next few years.
For the frequent increase of holdings and repurchase of science and Technology Innovation Board companies, Tang Liming’s analysis to reporters: “The increase and repurchase of listed companies usually reflects the confidence of enterprises in their own development, and also reflects that the stock price may not fully reflect the value of the company. Sinocelltech Group Limited(688520) is still in the stage of high R & D investment. The company was approved by the CSRC to carry out private placement in November 2021, and plans to complete the issuance in the next few months to help the long-term development of the company.”
In addition, China Railway Construction Heavy Industry Corporation Limited(688425) relevant person in charge also said in an interview with reporters: “Last year, the company’s operation reached a higher level, with rapid growth in revenue and profits, continued growth in R & D investment and further strengthening the attribute of science and innovation. At present, the overall decline in the market is irrational. For some companies with low valuation, there is a certain deviation between the current operating value and market valuation. In the future, the market will see more excellent companies to increase the disclosure of monthly data The form of “family background” boosts market confidence. “
