A shares fluctuated downward. Despite the poor disk trend, listed companies are constantly launching repurchase to convey confidence.
According to combing, as of April 25, 195 listed companies had launched repurchase plans during the year, with a total of 2.771 billion shares repurchased. According to the upper limit of repurchase price, the proposed repurchase amount was about 57.657 billion yuan. From the perspective of repurchase amount, there is no lack of large-scale repurchase of more than 1 billion yuan. Among them, Byd Company Limited(002594) plans to repurchase shares with 1.8 billion yuan to 1.85 billion yuan, and the repurchase price shall not exceed 300 yuan / share China Vanke Co.Ltd(000002) the total repurchase funds shall not exceed 2.5 billion yuan and not be less than 2 billion yuan Haier Smart Home Co.Ltd(600690) is proposed to repurchase no more than 3 billion yuan.
It is worth mentioning that the biggest feature of the share repurchase of listed companies is that it is mostly used for equity incentive. For example Byd Company Limited(002594) , all the shares repurchased this time will be used to implement the company’s employee stock ownership plan. The transfer price of the employee stock ownership plan is 0 yuan / share, and the participants do not need to contribute. This is a necessary way for listed companies to establish and improve the long-term incentive mechanism, bind the development of the company with the vital interests of employees, and retain excellent talents, which is conducive to the sustainable development of the company.
On the one hand, listed companies are optimistic about the long-term investment value of the company and have confidence in the sustainable development of the company; On the other hand, the current stock price deviates from the fundamentals of listed companies, and the company further boosts the stock price through repurchase.
The long-term investment value of A-Shares is further highlighted, which can be proved from three aspects:
First, the high-quality development of listed companies is ushering in a new situation.
Recently, the CSRC, the state owned assets supervision and Administration Commission of the State Council and the all China Federation of industry and Commerce jointly issued the notice on further supporting the healthy development of listed companies, which proposed to support qualified listed companies to repurchase shares in order to stabilize the stock price, and support listed companies to raise funds to implement share repurchase through issuing preferred shares, bonds and other channels according to law.
Second, from the latest performance of listed companies, the performance of Listed Companies in many industries such as new energy vehicles, chemical industry and photovoltaic continues to improve.
The first quarter performance of Byd Company Limited(002594) , Tongwei Co.Ltd(600438) , Qinghai Salt Lake Industry Co.Ltd(000792) and other companies doubled. From the first quarter transcripts released by these companies, it is not difficult to find that China’s chemical industry, new energy, lithium battery and other industries are developing rapidly. In the long run, they still have great potential, and the overall trend of the industry is good.
Third, the valuations of many industries and related companies such as medicine and home furnishing are at a low level, the impact of the epidemic on listed companies is weakening, the resumption of work and production in many industries such as medicine, semiconductor and automobile is continuously promoted, and the industrial chain is gradually revitalizing.
Gold is not seen until the waves wash away the sand. As the disclosure of last year’s annual report and the first quarterly report of this year come to an end, the listed companies with excellent results continue to appear, the superimposed repurchase boom continues to release positive results, and investors’ confidence in A-Shares will gradually recover.
Some experts believe that under the current market downturn, it is an important measure to enhance the company’s value and market attractiveness for competent listed companies to increase the net asset value per share by repurchasing some shares and canceling them. At present, this mode of operation of China’s stock market is rare. He called on powerful companies to take positive action.
