Cash dividends of listed companies are an important way to give back to investors. According to the data, as of April 5, a total of 136 listed companies in the A-share pharmaceutical and biological industry released their annual reports for 2021. Among them, 109 companies plan to pay cash dividends, accounting for more than 80%, and the total cash dividends exceed 26.3 billion yuan.
However, from the perspective of the overall dividend yield, the dividend yield of the pharmaceutical and biological industry is not high. Calculated according to the latest closing price, Shanxi Zhendong Pharmaceutical Co.Ltd(300158) the dividend yield (27.00 yuan for every 10 shares, the latest closing price of 14.26 yuan) is 18.9% Sino Biological Inc(301047) , Daan Gene Co.Ltd(002030) , Jiangzhong Pharmaceutical Co.Ltd(600750) , Teyi Pharmaceutical Group Co.Ltd(002728) , Huapont Life Sciences Co.Ltd(002004) , Shandong Wohua Pharmaceutical Co.Ltd(002107) dividend yield exceeds 3.5%, but the dividend yield of 90 companies is less than 2%.
In this regard, Li Yifeng, chief researcher of Guangzhou pebble investment pharmaceutical industry, told the Securities Daily that the driving force for the development of the pharmaceutical industry is growth and innovation, and the low dividend rate will not affect investors’ judgment on the value of Listed Companies in this field.
58 companies plan to pay out more than 100 million yuan
According to the data, as of April 5, 58 listed companies in the pharmaceutical and biological sector had paid local tyrants’ dividends. The total annual cash dividends announced by these listed companies exceeded 100 million yuan, of which Shanxi Zhendong Pharmaceutical Co.Ltd(300158) , Yunnan Baiyao Group Co.Ltd(000538) , Daan Gene Co.Ltd(002030) , Wuxi Apptec Co.Ltd(603259) , Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) cash dividends exceeded 1 billion yuan.
According to the data, the total cash dividends of 59 listed pharmaceutical and biological companies accounted for more than 30% of the net profit of the year. Among them, Shanxi Zhendong Pharmaceutical Co.Ltd(300158) proposed cash dividend is about 2.77 billion yuan, ranking first in the industry temporarily, and the total cash dividend of the company exceeds the net profit attributable to the shareholders of the parent company in 2021. In addition, the total cash dividends of Anhui Anke Biotechnology (Group)Co.Ltd(300009) , Teyi Pharmaceutical Group Co.Ltd(002728) and others in 2021 exceeded the net profit attributable to the shareholders of the parent company in that year.
In addition, the reporter made statistics on the cash dividend or share capital increase of 10 listed companies. Among them, Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) based on the total share capital registered on the date of equity distribution, distributed profits, and distributed bonus shares of 2 yuan to all shareholders for every 10 shares. In addition, the company also plans to convert the capital reserve into share capital and add 2.5 shares to all shareholders for every 10 shares in this year.
Li Yifeng introduced that the high transfer is essentially the internal structural adjustment of shareholders’ equity, which has no impact on the return on net assets and has no substantive impact on the profitability of the company. Investors can pay appropriate attention to the scarce targets of large-scale dividends.
27 enterprises choose not to pay dividends
Among the listed companies that published the annual report of 2021, 27 listed pharmaceutical and biological companies chose not to pay dividends.
Among them, seven listed companies achieved negative net profits attributable to shareholders of listed companies last year, and there are conditions for no dividend Shandong Xinhua Pharmaceutical Company Limited(000756) and other listed companies did not pay dividends when the net profit attributable to the shareholders of the parent company exceeded 100 million yuan.
Hpgc Renmintongtai Pharmaceutical Corporation(600829) said that the accumulated cash dividend of the company in recent three years was 695866 million yuan, which was higher than the provision of “the accumulated profit distributed in cash in recent three years shall not be less than 30% of the average annual distributable profit realized in recent three years” stipulated in the measures for the administration of securities issuance of listed companies. In order to ensure the sustainable and stable development of the company’s business and the long-term interests of all shareholders, in view of the business plan and capital demand in 2022, the retained undistributed profits will be used for the development of main business. It is proposed that neither profit distribution nor capital accumulation fund will be converted into capital in this year.
Shandong Xinhua Pharmaceutical Company Limited(000756) said that in view of the company’s non-public offering of a shares, in order to promote relevant work as soon as possible, the board of directors suggested that after the implementation of the company’s non-public offering of a shares, the profit distribution plan for 2021 should be considered separately in accordance with the articles of Association and relevant laws and regulations.
Qianjiang Yongan Pharmaceutical Co.Ltd(002365) said in the 2021 annual report that the profit distribution plan is combined with the company’s investment and development plan in 2021, and the retained undistributed profits will be mainly used for new projects and foreign investment, providing a reliable guarantee for the smooth implementation of the company’s medium and long-term development strategy and sustainable and healthy development.
Bao Jingang, a researcher of Rongzhi investment under private placement paipai.com, told the Securities Daily that there are two ways for listed companies to realize value: one is dividend, which is suitable for mature industries; The second is growth, which is suitable for growing industries. Pharmaceutical and biological industries belong to large industries, and the situation of each subdivided industry will be different. As far as China Meheco Group Co.Ltd(600056) biological industry is concerned, most of the subdivided industries are still in a period of rapid growth, so the growth ability is more attractive than dividends.
“In terms of long-term development, the amount of dividends paid by listed pharmaceutical and biological companies depends on the stage and industry attributes of the subdivided industries. Dividends will be greater in relatively mature industries and subdivided industries that do not need too much R & D investment. For mature subdivided industries, the main way to realize value is dividends.” Bao Jingang told reporters.
