Shandong Nanshan Aluminium Co.Ltd(600219) repurchase has made new progress. On January 6, 2022, Shandong Nanshan Aluminium Co.Ltd(600219) announced that as of December 31, 2021, the company had repurchased 59.464433 million shares by means of centralized bidding transaction, accounting for 0.50% of the total share capital of the company. The highest price of repurchase transaction was 4.84 yuan / share, the lowest price was 4.47 yuan / share, and the total transaction amount was 279 million yuan (excluding transaction costs, commissions, etc.).
Shen Meng, executive director of Xiangsong capital, told the Securities Daily that from the current capital market, there are two main purposes for Chinese listed companies to repurchase shares: one is to stabilize the stock price and give back to investors; The second is to implement the equity incentive plan.
In recent years, the dividend focused on Shandong Nanshan Aluminium Co.Ltd(600219) high-end strategy has been gradually released. At present, the company has leading advantages in high-end aluminum processing products such as automobile plate, aviation plate and power battery foil, and the profit growth model will open a new chapter. In the first three quarters of 2021, the company achieved a sales revenue of 20.385 billion yuan, a year-on-year increase of 30.64%, and a net profit of 2.519 billion yuan, a year-on-year increase of 78.17%, which has exceeded the annual profit level of 2020.
On October 26, 2021, Shandong Nanshan Aluminium Co.Ltd(600219) after deliberation and approval by the board of directors, the proposal on repurchase of shares of the company by centralized bidding transaction was adopted. The number of shares repurchased this time shall not be less than 133.33 million, the price of shares repurchased shall not exceed RMB 6 / share, the total capital of shares repurchased is RMB 800 million to RMB 1.6 billion, and the shares repurchased are used to reduce the registered capital of the company.
What impact does repurchase have on the development of enterprises?
Shen Meng said that if it is because of the low share price, repurchase can increase the value of the remaining shares at a lower cost and improve the return on net assets per share, but it will reduce the working capital of listed companies. If it is for equity incentive, it is used to lock in core employees and serve the long-term interests of listed companies.
Kuang Yuqing, the founder of lens research and an expert in capital market research, said, “some companies regard repurchase as a way of shareholder return, and reduce the number of company share capital through repurchase, so that each share of shareholders will be more valuable.”
” Shandong Nanshan Aluminium Co.Ltd(600219) repurchase is based on confidence in future development.” When answering investors’ questions a few days ago, the company said that under the background of the current wave of automobile electrification, with the support of double carbon policy, lightweight automobile plates are gradually becoming the market trend, which also provides a huge growth space for the company’s aluminum automobile plate products. The company is focusing its resources on the high-end manufacturing field and accelerating the improvement of product structure. At this stage, the profit contribution of high-end manufacturing products represented by automobile plates has accounted for nearly 20%. In the next three years, the company will continue to operate around the strategic plan of “building a leading enterprise in China’s lightweight automobile panel”, and strive to achieve the goal of 50% market share in China as soon as possible.
(Securities Daily)
