On March 9, Hengli Petrochemical Co.Ltd(600346) , Ningbo Peacebird Fashion Co.Ltd(603877) , Lionco Pharmaceutical Group Co.Ltd(603669) and Hangzhou Raycloud Technology Co.Ltd(688365) issued the repurchase plan. Among them, Hengli Petrochemical Co.Ltd(600346) , the company planned to spend 1 billion yuan to implement the repurchase, while on February 18, the company just announced that it had spent 1 billion yuan to complete the previous round of repurchase. In addition, Healthcare Co.Ltd(603313) , Jason Furniture (Hangzhou) Co.Ltd(603816) , Zhongnongfa Seed Industry Group Co.Ltd(600313) releases the shareholding increase plan of senior executives or actual controllers. The increase of holdings and repurchase of listed companies is heating up.
“Recently, A-Shares fluctuated greatly, and the overall market situation led to the aggravation of investor panic. The main significance of listed companies to increase their holdings and repurchase at this time point is to show their own financial strength and stabilize investor confidence. At the same time, the repurchased shares can also be used for the company’s own equity incentive, boost the morale of the company’s employees and promote the further development of the enterprise.” Chen Li, chief economist of Chuancai securities and director of the Research Institute, said in an interview with Securities Daily.
increased shareholding repurchase company
presents two characteristics
In addition to the new repurchase plan, listed companies also have a “repurchase +” repurchase plan. On March 8, 360 Security Technology Inc(601360) released the implementation arrangement of the share repurchase plan by means of centralized bidding. The company plans to repurchase the company’s shares by means of centralized bidding from March 9 to March 11, with a total repurchase amount of no less than 90 million yuan and no more than 120 million yuan. The subsequent company will continue to repurchase according to the repurchase plan 360 Security Technology Inc(601360) this round of repurchase began in October last year, and it is planned to spend 1 billion yuan to 1.5 billion yuan to implement the repurchase. By the end of February, the company had spent 737 million yuan on repurchase.
According to statistics, since the beginning of this year, as of March 9, 65 listed companies have issued repurchase plans and 80 companies have issued 124 plans to increase the holdings of important shareholders. Among them, only on March 8 and March 9, seven companies issued repurchase plans and seven companies issued plans to increase the holdings of important shareholders.
Referring to the recent strengthening of the willingness of listed companies to increase their holdings and repurchase, Central China Securities Co.Ltd(601375) strategy analyst Lin Sishan told reporters: “from the perspective of strategy, the market has fallen to the bottom of a stage, and many companies with no problems in fundamentals have highlighted their cost performance.”
From the perspective of implementation, according to statistics, as of March 9, 262 listed companies have implemented repurchase through centralized bidding this year, with a total repurchase amount of RMB 11.468 billion, of which Vantone Neo Development Group Co.Ltd(600246) has opened the second repurchase within the year. In terms of implementation amount, the implementation amount of pharmaceutical, biological, electronic and petroleum and petrochemical industries is relatively high, which are 2.846 billion yuan, 1.63 billion yuan and 1.042 billion yuan respectively.
As for the increase of shareholding, as of March 9, 113 listed companies have obtained the net increase of important shareholders (that is, the increase of shareholding exceeds the reduction of shareholding), and the three industries of medicine and biology, power equipment and mechanical equipment have obtained more net increase of shareholding, with 18, 13 and 11 respectively.
Turning to the characteristics of listed companies that increased their holdings and repurchases this year, Chen Li said that since this year, there have been a large number of cases of listed companies increasing their holdings and repurchases. One of the remarkable features is that many of them have performed well in 2021 and maintained the growth momentum, and these companies are subject to the downturn of the overall market since this year, Performance growth is not reflected in the stock price; Another major feature is that the increase and repurchase are still concentrated in industries with high maturity. These enterprises have no demand for financing expansion. It is a good choice to buy back shares with their own cash to protect shareholders’ rights and interests.
1051 listed companies
net profit increased by nearly 30% year on year
In terms of the performance of listed companies, according to statistics, as of March 9, 1051 listed companies released their performance in 2021, of which 777 had a year-on-year increase in net profit, accounting for 73.93%.
Overall, 1051 listed companies achieved a total net profit of 1245704 billion yuan, a year-on-year increase of 28.76%. Among them, 97, 12, 6, 26 and 119 companies in the chemical, mining, textile and garment, nonferrous metals and pharmaceutical and biological industries led the increase in net profit, with net profit increasing by 130.71%, 116.81%, 78.45%, 75.90% and 71.03% year-on-year respectively.
Chen Li said that from the perspective of the sector, the first one with better performance in 2021 is new energy. As the main track strongly supported by policies, performance growth is due. Then there are commodity and cycle sectors, especially mineral and raw material enterprises in the upstream of new energy. Then, the pharmaceutical related industries will be stimulated by the epidemic, and the large-scale procurement of reagent kits will have a significant performance boost.
Turning to the performance of listed companies this year, Chen Li said that China’s GDP growth target this year is 5.5%, and steady growth has become an important theme. At present, in terms of policy, new energy fields such as Fengguang storage are the main direction of investment driven by provinces and cities, and the performance of new energy construction and operation enterprises is expected to benefit directly. At the same time, due to the epidemic last year, a large number of overseas enterprises stopped production. This year, with the slowdown of the epidemic and resumption of work, this part of production capacity will be released. Enterprises with better export performance last year will have greater performance pressure this year.
