Since this year, 46 listed companies in Shenzhen have announced their intention to repurchase. During this period, more than 180 listed companies have repurchased their shares, with a total repurchase amount of more than 10 billion yuan. In addition, the controlling shareholder, actual controller and Dong Jiangao of 24 listed companies disclosed the shareholding increase plan, and the proposed shareholding increase amount is about 1.5 billion yuan.
Shenzhen listed companies and important shareholders actively repurchase and increase their holdings of their own shares, which is echoing the “giving play to the role of the endogenous stability mechanism of the market” and “making every effort to maintain the stable operation of the market” put forward by the CSRC when it held an expanded meeting to convey and study the spirit of the special meeting of the financial committee of the State Council. From the perspective of listed companies, the repurchase of shares can boost market sentiment on the one hand and show confidence in the long-term development of the company on the other hand.
Shenzhen enterprises repurchase during the year
exceeding 10 billion yuan
On March 16, when the CSRC held an enlarged meeting to convey and study the spirit of the special meeting of the financial committee of the State Council, it said that we should give full play to the role of the endogenous stability mechanism of the market, vigorously promote listed companies to improve their quality, and encourage listed companies to increase their holdings and repurchase; On March 17, when conveying, studying and implementing the spirit of the national two sessions, the CSRC proposed to adhere to the word “stability”, further improve the endogenous stability mechanism of the capital market, promote the solution of key and sensitive issues related to capital market expectations, ecology and environment, and spare no effort to maintain the stable operation of the market.
As an important part of the capital market, Shenzhen listed companies “support” their stock prices when the market fluctuates. Market analysis points out that the active repurchase of listed companies and the increase of holdings by important shareholders echo the important measures proposed by the current regulatory authorities to “give play to the role of the endogenous stability mechanism of the market”.
On March 21, Tcl Technology Group Corporation(000100) issued an announcement on the repurchase report of repurchasing some social public shares in 2022, proposing to use self owned funds, self raised funds and other financing methods to repurchase the company’s shares by means of centralized bidding transaction. The total amount of repurchased shares shall not be less than 450 million yuan and not more than 550 million yuan, and the repurchase price shall not exceed 800 yuan / share. The shares repurchased this time will be used for employee stock ownership plan or equity incentive.
There are still many Shenzhen enterprises that “work in the same direction” with Tcl Technology Group Corporation(000100) .
According to statistics, since March 9, about 25 listed companies in Shenzhen have issued repurchase plans or reports, and the upper limit of the proposed repurchase amount has reached 11.5 billion yuan, including Midea Group Co.Ltd(000333) , Rongsheng Petro Chemical Co.Ltd(002493) , Shenzhen Inovance Technology Co.Ltd(300124) , Skyworth Digital Co.Ltd(000810) and other high-quality companies, including Midea Group Co.Ltd(000333) the proposed repurchase amount is no less than 2.5 billion yuan and no more than 5 billion yuan. In addition, a number of listed companies announced the completion of stock repurchase for the first time.
According to the progress of repurchase disclosed by the company, in 2022, the repurchase amount of five listed companies in Shenzhen this year exceeded 500 million yuan, namely S.F.Holding Co.Ltd(002352) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , BOE, Changchun High And New Technology Industries (Group) Inc(000661) , Glodon Company Limited(002410) , of which the repurchase amount of S.F.Holding Co.Ltd(002352) has exceeded 1 billion yuan. 24 listed companies repurchased more than 100 million yuan.
to the company and the Chinese economy
development confidence
On March 14, Jafron Biomedical Co.Ltd(300529) issued an announcement on the completion of the implementation of the plan for the actual controller to increase the shares of the company. Combing the announcement, there are two highlights of the increase, one is the “top grid” increase, and the other is the rapid increase.
According to the announcement issued in November last year, Dong Fan, the actual controller of Jafron Biomedical Co.Ltd(300529) plans to increase the company’s shares through centralized bidding, block trading or other means permitted by laws and regulations within six months. The total amount of shares to be increased is not less than 100 million yuan and not more than 200 million yuan (including this amount).
After only 2 / 3 of the planned time, the actual controller of Jafron Biomedical Co.Ltd(300529) completed the “top grid” shareholding increase.
“Before the increase of the actual controller of the company, the listed company has also carried out a repurchase.” Jafron Biomedical Co.Ltd(300529) securities affairs representative Huang Cong said in an interview with the securities times, “A shares have been adjusted recently, but the company’s fundamentals have not changed. Listed companies and actual controllers are very confident in the company’s future performance. The company’s repurchase and actual controller’s increase are also to convey our recognition of the company’s investment value to the market.”
Do-Fluoride New Materials Co.Ltd(002407) relevant person in charge told the securities times that the company’s current production and operation is normal. Due to the continuous strong market demand, the company’s relevant products are in short supply. At present, the company is producing at full capacity according to the order demand of downstream customers, and it is expected to maintain the trend of full production and full sales this year. According to the announcement, the controlling shareholders and persons acting in concert of the company plan to increase their holdings of shares of the company by no less than 50 million yuan and no more than 100 million yuan.
The Securities Times reporter combed the repurchase announcement of listed companies and found that most listed companies in Shenzhen believe that stock repurchase is based on confidence in the company’s future development and recognition of the company’s long-term value. In addition, there has been a correction in A-Shares recently, and the company’s share price is lower than its intrinsic value. We hope to convey the message that the company’s value is undervalued to the market through share repurchase.
Some market analysts pointed out that the current listed companies are in the window period of annual report disclosure. When the company completes the annual report disclosure, it will no longer be limited by the window period. It is expected that more listed companies may participate in the repurchase and increase of shares in the future.
The confidence of Listed Companies in future development comes from their confidence in China’s economic development.
Tcl Technology Group Corporation(000100) in referring to the purpose and purpose of repurchase in the announcement, the company said that based on the development of science and technology manufacturing industry, aiming at global leadership, and in accordance with the work requirements of “improving operation quality and efficiency, forging long board to make up for shortcomings, innovation driven development and accelerating global layout”, the company promoted the two core main industries of semiconductor display, semiconductor photovoltaic and semiconductor materials to become global leaders.
Do-Fluoride New Materials Co.Ltd(002407) relevant person in charge said in an interview with the securities times that in the context of the “double carbon” goal, the development concepts of science and technology, green, stability and sustainability have become the main theme, and the Chinese Shanxi Guoxin Energy Corporation Limited(600617) and new material industries have ushered in unprecedented development opportunities. At present, China’s economy is recovering, transforming and upgrading, gradually shifting to high-quality development, the economic structure is more optimized, the added value of high-tech manufacturing industries above designated size has increased significantly, the upgrading consumption and investment in high-tech industries have increased rapidly, and the demand structure continues to improve. As the backbone of national economic development, listed companies should actively take the lead in fulfilling social responsibilities, maintaining social stability, practicing scientific, green and sustainable development, and repay investors with better performance.
Market analysis pointed out that the repurchase and shareholding increase of listed companies are also full of confidence in the long-term development of China’s economy and believe that China’s economic growth will still become the most dynamic region in the world economy.
