In the face of the recent continuous adjustment of the A-share market, many listed companies have actively launched share repurchase plans to boost market confidence.
According to the statistics of the reporter from the Securities Daily, according to the statistics from the reporter of the Securities Daily, the statistics from the reporter of the Securities Daily, according to the statistics from the reporter of the Securities Daily, there is only the 15th of March, the 15th of March, with the only three days of the 15th of March, and the statistics from the statistics from the reporter statistics, the statistics of the reporter of the Securities Daily, the statistics from the reporter of the Securities Daily, the only three days of the 15th of March, and there are the Rongsheng Petro Chemical Co.Ltd(002493) Rongsheng Petro Chemical Co.Ltd(002493) , Suzhou Etron Technologies Co.Ltd(603380) , Jiangsu Feymer Technology Co.Ltd(688350) and more than 10 listed companies have issued share repurchase plans. The previous day, Midea, Yutong Heavy Industries Co.Ltd(600817) and other companies had issued share repurchase plans.
“First, it is the confidence of the company to restore the stock price and help the investors to stabilize the stock market.” Chen Ji, director of the Institute of industry and economics of Capital University of economics and trade, said in an interview with Securities Daily.
share repurchase plan issued intensively
On March 15, Xi’An Manareco New Materials Co.Ltd(688550) announced that the company plans to buy back shares with 50 million yuan to 100 million yuan for employee stock ownership plan or equity incentive.
This is only one of the more than ten repurchase plans on that day.
“Generally speaking, the share repurchase of listed companies is mainly based on the following four factors.” Tong Tiehan, a finance and taxation expert and distinguished professor of the school of management of Xi’an Jiaotong University, said in an interview with the reporter of Securities Daily: first, through share repurchase, it gives the market and investors a signal of optimistic about the future development of the company, which plays a positive role in maintaining the stock price and even pushing up the stock price and increasing the value of the enterprise; Second, through share repurchase, it is used as the stock source for the company to implement equity incentive or employee stock ownership plan; Third, through share repurchase, we can adjust the company’s registered capital, optimize the capital structure and ensure the company’s control; Fourth, it has a certain effect on improving the profitability of the company and the investment value of stocks, which can enable investors to better share the growth dividend of the company.
Gansu Shangfeng Cement Co.Ltd(000672) said that the Company repurchased the company’s shares with its own funds of 200 million yuan to 300 million yuan, and the repurchase price was no more than 25.00 yuan / share, which was used to implement the employee stock ownership plan or equity incentive plan Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) , Fujian Torch Electron Technology Co.Ltd(603678) , Shenzhen Megmeet Electrical Co.Ltd(002851) , Bear Electric Appliance Co.Ltd(002959) , Ningbo Jintian Copper (Group) Co.Ltd(601609) and other repurchased shares are intended to be used in ESOP or equity incentive plan.
While Rongsheng Petro Chemical Co.Ltd(002493) , Suzhou Etron Technologies Co.Ltd(603380) etc. said that the purpose of share repurchase was to boost investor confidence. “Enhance the confidence of investors, promote the reasonable return of the company’s stock price to the company’s long-term intrinsic value, and promote the stable and sustainable development of the company.” Rongsheng Petro Chemical Co.Ltd(002493) scale.
beware of “flickering repo”
“Listed companies push the repurchase plan, which has a positive impact on the market.” Tong Tiehan said that however, the share repurchase plan should be legal and feasible, conducive to the sustainable development of the company, and shall not damage the legitimate rights and interests of shareholders and relevant stakeholders.
“It is particularly noteworthy that the application of the company’s share repurchase is clear and strictly implemented. It is strictly prohibited to ‘deceptive repurchase’ and ‘slogan repurchase’.” Tong Tiehan said.
Chen Ji said that share repurchases must be based on an objective judgment of the company’s strength and market. Otherwise, unrealistic share repurchases will trigger market risks and damage the fundamental interests of the company.
Performance support is a common feature of listed companies that repurchase shares this time Gansu Shangfeng Cement Co.Ltd(000672) said that the share repurchase is a pragmatic measure taken by the company to safeguard the interests of investors and enhance investor confidence in combination with financial status, operation, future profitability and development prospects.
Since its listing in 2013, Gansu Shangfeng Cement Co.Ltd(000672) has maintained good growth and development. The scale of assets and revenue has quadrupled compared with that before listing, and the compound annual growth rate of net profit is about 45%.
Rongsheng Petro Chemical Co.Ltd(002493) performance express shows that in 2021, Rongsheng Petro Chemical Co.Ltd(002493) total operating revenue reached 181535 billion yuan, a year-on-year increase of 69.24%; The net profit was 12.843 billion yuan, a year-on-year increase of 75.72%.
Xi’An Manareco New Materials Co.Ltd(688550) previously released performance express shows that the total operating revenue of Xi’An Manareco New Materials Co.Ltd(688550) in 2021 was 1.539 billion yuan, a year-on-year increase of 46.67%; The net profit was 238 million yuan, a year-on-year increase of 35.91%.
