Although the A-share market has fluctuated widely recently, industrial capital is accelerating its entry, and measures such as increasing holdings and repurchase are heating up, which is intended to convey confidence in China’s capital market and the company’s future development prospects. At the same time, according to the operating data from January to February disclosed by listed companies recently, many listed companies have a good sales trend and their monthly performance shows a high growth situation.
several leading companies compete to buy back and increase their holdings
On March 11, Haier Smart Home Co.Ltd(600690) announced that Renhai Chuangzhi, the concerted action of Haier Group, the actual controller of the company, had increased its holdings of 11.7 million A-Shares of the company through the trading system of Shanghai Stock Exchange from March 8, 2022 to March 11, 2022, accounting for 0.12% of the total share capital of the company, with an average increase price of 22.40 yuan / share and an increase amount of about 262 million yuan.
Haier Smart Home Co.Ltd(600690) said in the announcement that based on its confidence in the long-term development of China’s capital market and the company’s business prospects, haichuangzhi plans to continue to increase its holdings of A-Shares of the company through the trading system of Shanghai Stock Exchange within the time allowed by relevant laws and regulations in the next six months, with a cumulative increase of no less than 200 million yuan and no more than 350 million yuan (including the shares increased for the first time).
According to the announcement statistics, nearly ten listed companies, including Haier Smart Home Co.Ltd(600690) , Cnfc Overseas Fisheries Co.Ltd(000798) and Cnfc Overseas Fisheries Co.Ltd(000798) issued plans to increase their holdings of important shareholders on the 11th alone. According to the data, 44 companies have issued plans to increase their holdings of important shareholders during the year, and there have been multiple increases of major shareholders of many companies during the period. The reason is mostly “based on the recognition of the confidence and internal value of the market and the company’s future”.
At the same time, a number of leading companies have recently released large repurchase plans.
On March 13, Jiangsu Hengrui Medicine Co.Ltd(600276) announced that it planned to buy back the company’s shares from the secondary market by means of centralized bidding transaction with a repurchase price of no more than RMB 60.22 per share, and the source of funds for share repurchase was the company’s own funds Jiangsu Hengrui Medicine Co.Ltd(600276) said that the repurchase was based on the confidence and fundamental judgment of the company’s future development prospects, in order to safeguard the interests of the company and the majority of investors, improve the long-term incentive mechanism of the company’s employees and fully mobilize the enthusiasm of employees.
In addition, a number of leading companies such as Qi An Xin Technology Group Inc(688561) , Zte Corporation(000063) , S.F.Holding Co.Ltd(002352) , China Telecom Corporation Limited(601728) and others have recently disclosed large repurchase plans. According to the data, 503 listed companies have released the share repurchase plan or the latest repurchase progress this year, a total of 305 enterprises have implemented repurchase, and the disclosed repurchase amount has reached 18.476 billion yuan. Among them, Hengli Petrochemical Co.Ltd(600346) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) and other 43 companies have repurchased more than 100 million yuan during the year, and Hengli Petrochemical Co.Ltd(600346) has repurchased more than 1.1 billion yuan.
GUI Haoming, chief market expert of Shenyin Wanguo Securities Research Institute, told the reporter of Economic Information Daily that recently, there have been many phenomena of listed companies repurchasing and executives increasing their holdings of shares. On the one hand, the performance of the A-share market is relatively low, and listed companies have the willingness to maintain the stock price, and some companies also hope to enhance investor confidence; On the other hand, companies with abundant cash flow repurchase when the stock price is low, which helps to improve financial data such as return on net assets.
“Enterprises can release positive information to the market through share repurchase and shareholders can increase their holdings, boost investor confidence, stabilize stock prices and safeguard investors’ rights and interests. Important shareholders have confidence in the future development of the company and will also choose to increase their holdings of shares at an appropriate time.” Chen Li, chief economist of Chuancai securities and director of the Research Institute, told reporters that on the other hand, enterprises choose to reward employees in the form of equity incentive. A relatively low share price can effectively reduce the impact of the implementation of the incentive plan on the company’s cash flow.
Monthly operating data of listed companies
It is worth noting that the operating data recently disclosed by many companies from January to February show that the operation has been good this year. According to the incomplete statistics of the reporter of the economic information daily, as of March 12, more than 50 A-share listed companies have released the main business data from January to February this year, and most of them are industry leading enterprises.
Taking Baijiu industry as an example, in March 7th, Kweichow Moutai Co.Ltd(600519) first disclosed the main business data from January 2022 to February: from January 2022 to February, the company realized total revenue of 20 billion 200 million yuan, up by 20% over the same period last year. The net profit attributable to shareholders of listed companies was about 10.2 billion yuan, an increase of about 20% year-on-year. In addition, a number of listed liquor enterprises, including Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) , tianyoude liquor and Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) also disclosed their operating data from January to February, and their net profit increased by more than 20%.
Many high-tech enterprises also hand over monthly bright “report cards” According to the Hangzhou Lion Electronics Co.Ltd(605358) announcement, after preliminary accounting, from January to February 2022, the company achieved an operating revenue of about 458.36 million yuan, an increase of about 84% year-on-year; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was about 131 million yuan, with a year-on-year increase of about 253% Semiconductor Manufacturing International Corporation(688981) announced that it is expected to achieve an operating revenue of about $1.223 billion from January to February, a year-on-year increase of 59.1%; The net profit attributable to the parent company was about US $309 million, a year-on-year increase of 94.9%.
The photovoltaic industry also shows the situation of booming production and sales. The operating revenue of the leading enterprises increased by about 1.6 billion yuan in August, showing a year-on-year growth of about 1.3 billion yuan; The net profit attributable to shareholders of listed companies was about 3.3 billion yuan, an increase of about 650% year-on-year.
“The operating data from January to February is not the legal obligation required by the exchange, but recently, leading companies such as Maotai have successively disclosed monthly operating data, which is a good thing for investors, so that more investors can understand the operation and profitability of recent times and enhance market confidence.” GUI Haoming said. However, he also suggested that at present, there are not many listed companies that publish monthly data. In the first quarter, there may still be a thunder explosion in the performance of some listed companies, which needs to be treated with caution and objectivity.
Chen Lei expects Baijiu listed companies to perform better in the first quarter, including four categories, one is raw material sector such as coal and non-ferrous metals, two is the new energy industry chain related listed companies, three is still tenacity of high-end liquor consumption, and four is the pharmaceutical bio sector. In his view, boosted by demand, enterprises in coal, non-ferrous metals and other raw materials achieved high performance in the first quarter. Baijiu industry differentiation is still continuing, but the consumption of high-end Baijiu is still resilient, and the performance of high-end liquor keeps steady growth.
