On March 18, Henan Tong-Da Cable Co.Ltd(002560) ( Henan Tong-Da Cable Co.Ltd(002560) ) announced that the company plans to use its own funds to buy back the company’s shares by means of centralized bidding at a price of no less than 1220600 yuan and no more than 2441200 yuan for the subsequent implementation of equity incentive or employee stock ownership plan, and the repurchase price is no more than 8.92 yuan / share.
This “super pocket” repurchase plan has also aroused heated discussion among investors. Some people have made quite “heart piercing” comments, “not as much as I buy.”
net profit of 24 million yuan, a year-on-year decrease of 80%
Henan Tong-Da Cable Co.Ltd(002560) business includes wire and cable production and sales, aviation parts processing and new aluminum matrix composite materials.
In 2021, Henan Tong-Da Cable Co.Ltd(002560) achieved a total operating revenue of 2.363 billion yuan, an increase of 22.01% year-on-year; The net profit was 24 million yuan, a year-on-year decrease of 80.39%. By industry, the wire and cable sector achieved an operating revenue of 2.355 billion yuan, and the medical and military industry sector achieved an operating revenue of 156 million yuan.
For the sharp decline in net profit, Henan Tong-Da Cable Co.Ltd(002560) explained that the revenue and profit of Chengdu Hangfei, a subsidiary, increased rapidly, but affected by the macroeconomic environment, the prices of bulk commodities such as copper and aluminum, the main raw materials for cable business, rose sharply to an all-time high, resulting in a significant decline in the company’s net profit.
Henan Tong-Da Cable Co.Ltd(002560) said that in the future, the two businesses will be organically integrated according to the production and sales mode of cable business and aluminum based new materials business, continue to pay attention to the price trend of copper, aluminum and other raw materials, actively carry out futures hedging business, implement many cost reduction and efficiency improvement measures, strengthen marketing and procurement control, and avoid the risks caused by sharp fluctuations in raw material prices to the greatest extent, Lay a solid foundation for the long-term, sustainable and stable development of the company.
shouted the goal of “10 billion revenue” at the end of last year
Henan Tong-Da Cable Co.Ltd(002560) previously attracted attention, which was the company’s goal of “10 billion revenue”.
On December 9, 2021, Henan Tong-Da Cable Co.Ltd(002560) released the outline of the 14th five year development plan, which shows that the company will strive to achieve the business goal of annual operating income of 10 billion yuan and total profits and taxes of more than 1 billion yuan within five years, and develop into a leading enterprise in the wire and cable industry and aviation parts processing sector.
The reporter of securities times · e company noted that Ma Hongju, chairman of the company, said in an interview with local media at the end of last year, “we always uphold Henan Tong-Da Cable Co.Ltd(002560) , which works in a down-to-earth and honest manner, and never set a nihilistic goal to attract attention. It can be said that we have carefully calculated that the annual operating revenue will reach 10 billion yuan in five years.”
Ma Hongju said at that time, “at present, Chengdu Hangfei, the military industry sector of Henan Tong-Da Cable Co.Ltd(002560) is entering the harvest period after investment in previous years. According to our prediction, Chengdu Hangfei’s revenue is expected to increase significantly by the end of next year. Moreover, by the end of 2022, Henan Tong-Da Cable Co.Ltd(002560) ‘s annual revenue is expected to double.”
Whether the above performance objectives can be achieved remains to be tested by time.
“super pocket repurchase” triggered a heated discussion
In the annual report, Henan Tong-Da Cable Co.Ltd(002560) listed the business objectives for 2022, including continuing to look for high-quality targets in the military industry, strengthening cooperation through mergers and acquisitions, equity participation and other means, and striving to build the company into a high-quality military civilian integration platform as soon as possible.
However, Henan Tong-Da Cable Co.Ltd(002560) also stressed that the relevant business plan is not the company’s commitment to the business performance in 2022.
In the annual report, Henan Tong-Da Cable Co.Ltd(002560) also mentioned that in the future, the above-mentioned companies will focus on expanding the new market of cable sector, start with the goal of equity incentive, and implement equity repurchase, equity incentive or employee stock ownership plan for a long time, so as to achieve the development goal of the company’s business performance by 2025.
Since 2022, Henan Tong-Da Cable Co.Ltd(002560) share price has fallen by 14.79% in total, the latest closing price is 5.53 yuan / share, and the total market value of the company is 2.9 billion yuan.
Corresponding to the annual report, Henan Tong-Da Cable Co.Ltd(002560) disclosed the share repurchase plan of the company on the same day. For this repurchase, Henan Tong-Da Cable Co.Ltd(002560) gives the following reasons: at present, the company’s secondary market share price does not reflect the actual value of the company, at the same time, the company is in good financial condition and has sufficient cash flow.
According to the “super pocket repurchase” plan, Henan Tong-Da Cable Co.Ltd(002560) plans to use its own funds to repurchase the company’s shares by means of centralized bidding at a price of no less than 1220600 yuan and no more than 2441200 yuan for the subsequent implementation of equity incentive or employee stock ownership plan, and the repurchase price is no more than 8.92 yuan / share.
Compared with the target of “10 billion revenue”, the above repurchase amount has also aroused heated discussion among investors.
Some investors commented, “not as much as I buy.” More netizens joked, “warm congratulations on Henan Tong-Da Cable Co.Ltd(002560) winning the Guinness world record!” The impact of this repurchase on the company’s share price and whether it can “reflect the actual value of the company” are also worth further observation.
