China Vanke Co.Ltd(000002) , Youngy Co.Ltd(002192) , Shenzhen Sunlord Electronics Co.Ltd(002138) … More and more A-share companies convey confidence to the market through repurchase. At the same time, many shareholders and management of listed companies have increased their holdings.
Data show that as of April 22, more than 400 listed companies have announced the completion of repurchase or released repurchase plans this year, with a total of 6.429 billion shares repurchased, with a total repurchase amount of 56.616 billion yuan, a significant increase over the previous year.
“We have high confidence in the future development prospects and business conditions.” A number of listed companies that have recently implemented repurchase told reporters. Reviewing the historical data, it can be seen that the undervalued companies have obvious excess returns after the issuance of the repurchase plan.
In addition, as of the press time of the reporter, 576 A-share companies have released the first quarter report or the first quarter performance forecast, and the proportion of pre hi exceeds 70%. With the highlight of the “charm” of RMB assets, the net inflow of northward funds is recovering.
repo and overweight to convey confidence to the market
The “notice on further supporting the healthy development of listed companies” jointly issued by the CSRC, the SASAC and the all China Federation of industry and Commerce recently proposed to encourage listed companies to repurchase shares for equity incentive and employee stock ownership plans. Support eligible listed companies to repurchase in order to stabilize the share price. Support listed companies to raise funds and implement share repurchase through issuing preferred shares, bonds and other channels according to law.
The encouragement of the policy further stimulates the repurchase enthusiasm of listed companies. According to the data, as of April 20, 172 A-share companies have implemented repurchase or disclosed the progress of repurchase since April, and 80 A-share companies have disclosed the repurchase plan. On the evening of April 21, another 22 companies issued share repurchase plans or the latest progress of share repurchase.
If China Vanke Co.Ltd(000002) , the company plans to buy back shares of no less than 2 billion yuan and no more than 2.5 billion yuan with self raised funds. The company said that this move is to safeguard the company’s value and shareholders’ equity and boost investor confidence.
Another example is Yunnan Baiyao Group Co.Ltd(000538) , the company issued a repurchase announcement on the evening of April 20, which plans to use its own funds to repurchase the company’s shares. It is estimated that the repurchase amount will not exceed 1.119 billion yuan, which will be used to implement the employee stock ownership plan or equity incentive plan.
It is also used to implement the stock ownership plan or share the profits of employees as shareholders.
Shenzhen Sunlord Electronics Co.Ltd(002138) plans to repurchase shares with its own funds, with the repurchase amount not less than 200 million yuan and not more than 300 million yuan Shunfa Hengye Corporation(000631) plans to repurchase no less than 28 million shares and no more than 553118 million shares for ESOP or equity incentive, and the total amount to be used for repurchase will not exceed 288 million yuan (inclusive).
How does repurchase affect the company’s share price? According to Founder Securities Co.Ltd(601901) statistics, A-share repurchase has little impact on the stock price in the short term and has a supporting role in the long term. Half a year and one year after the listed company issued the repurchase plan, the average returns of 5.09% and 13.18% were formed respectively. This means that the probability of listed companies issuing repurchase plans is underestimated, and there is a possibility of appreciation in the future.
Zhao Yuanyuan, investment director of Jianhong times, said that at present, more than half of the industry PE is below the historical percentile of 20%, and there is little room for the continued downward adjustment of the valuation of these industries. From the historical data, the repurchase tide may be synchronized with the rising period of the index, or it may be about half a year ahead.
In addition to repurchase, shareholders and management of listed companies have increased their holdings.
On April 21, Sichuan Road & Bridge Co.Ltd(600039) announced that Shudao group, the controlling shareholder of the company, plans to increase its shares in the company within six months from April 22, and the amount of shares to be increased is not less than 500 million yuan and not more than 1 billion yuan.
Shenzhen Sunlord Electronics Co.Ltd(002138) april 19 announced that Shenzhen Qianhai azimuth Investment Management Co., Ltd. – azimuth growth No. 10 private securities investment fund plans to increase the shares of the company through the Shenzhen stock exchange system, with an increase amount of no less than 50 million yuan and no more than 100 million yuan, which will be completed within 6 months from the date of announcement. Azimuth growth No. 10 is the company’s management shareholding platform.
The executives of Aier Eye Hospital Group Co.Ltd(300015) are also admitted to increase their holdings. The company announced on April 12 that Li Li, vice chairman and general manager of the company, plans to increase the number of shares of the company by no less than 5 million shares within six months, and the increase price is no more than 50 yuan / share. Previously, Li Li has increased his holdings of about 2.05 million shares by means of centralized bidding, accounting for 0.038% of the company’s total share capital.
CSI 300 valuation highlights the cost performance
Looking back on the A-share market, after the previous surge of overweight and repurchase, there will be a wave of repair market. For example, in early March, several leading enterprises such as S.F.Holding Co.Ltd(002352) , Zte Corporation(000063) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) and others bought back, and the Shanghai Stock Index bottomed out from mid March to early April, with an increase of more than 6%.
“There are two main reasons for the increase of repurchase and shareholding increase cases of listed companies: first, the share price of some companies has fallen into the value range, which is the appropriate time point for the long-term allocation of funds to enter the market, so the scale of industrial capital holdings has begun to expand; second, the repurchase of listed companies helps to protect market confidence and protect the rights and interests of stock investors.” Citic Securities Company Limited(600030) chief economist Mingming said.
Mingming analysis, from the perspective of valuation, the current CSI 300 dynamic PE quantile has been at the level of the end of 2018 and March 2020, that is, the bottom range in the past few years, and there is limited room for further downward. Some positive signals from the fundamental dimension are also emerging. They tend to think that the current A-share is at the bottom, and it is more likely to follow the gradual repair of the economy.
the proportion of pre happy in the first quarterly report exceeds 70%
The positive signals of repurchase and overweight release reflect each other with the performance fundamentals of the steady growth of listed companies.
As of April 22, a total of 576 A-share companies have released the first quarter report or the first quarter performance forecast, with a pre happy ratio of more than 70%. By industry, companies expected to double their performance are mainly concentrated in basic chemical, pharmaceutical and biological, mechanical equipment, electronics and other industries.
Companies with high growth performance on the science and innovation board and the gem get together Shenzhen Yhlo Biotech Co.Ltd(688575) , Hangzhou Alltest Biotech Co.Ltd(688606) , Amlogic (Shanghai) Co.Ltd(688099) and other science and Innovation Board companies benefited from the high growth of industry prosperity and achieved high growth in performance. Among GEM companies, Henan Qingshuiyuan Technology Co.Ltd(300437) expects the net profit attributable to the parent company in the first quarter to increase by 181827% to 237050% year-on-year Shenzhen Bingchuan Network Co.Ltd(300533) , Zhejiang Narada Power Source Co.Ltd(300068) it is expected that the performance in the first quarter will increase by more than 14 times and 15 times year-on-year respectively.
With the “charm” of RMB assets highlighted, the net inflow of funds to the North resumed. On April 22, northbound funds accelerated to enter the market in the afternoon, raising more than 1 billion yuan in late trading, with a total net purchase of 6.765 billion yuan Contemporary Amperex Technology Co.Limited(300750) , Kweichow Moutai Co.Ltd(600519) , China Yangtze Power Co.Ltd(600900) received net purchases of 624 million yuan, 618 million yuan and 368 million yuan respectively.
