Since this year, listed companies have been enthusiastic about repurchases. Since August, 4 companies have announced repurchase plans, 7 companies have carried out share repurchases, and 10 companies have announced the completion of share repurchases. Data shows that since this year, 879 A-share listed companies have repurchased nearly 68 billion yuan. White horse stocks such as Midea and SF Express have repurchased more than 1 billion yuan in shares. The purpose of repurchasing shares includes employee stock ownership plans, equity incentive plans, conversion or cancellation of convertible corporate bonds issued by listed companies, etc.
In the past few days, Asymchem, Chipai Technology, Rongsheng Petrochemical and Wantai Biotech have released repurchase plans. Among them, Rongsheng Petrochemical announced on the 5th that it plans to repurchase 1 billion to 2 billion yuan. Data shows that since this year, 879 A-share listed companies have repurchased shares, an increase of about 20% compared with the same period last year; the amount of repurchases that have been completed is nearly 67.9 billion yuan, a slight decrease year-on-year. Among them, 586 A-share main board companies repurchased 55.2 billion yuan during the year, accounting for about 80% of the scale, and were the main force in repurchases during the year; from the perspective of industry distribution, companies that implemented share repurchases were mainly concentrated in medicine, biology, electronics and There are nearly 300 companies in the three major computer industries, accounting for nearly 35%.
At present, Hengli Petrochemical has the highest repurchase amount during the year. The company completed two repurchases during the year, with a total repurchase amount of nearly 2 billion yuan. It is worth noting that there are many white horse stocks in the list of share repurchases. On August 1, SF Holding announced that as of July 31, 2022, the company had repurchased a total of 36.7699 million shares of the company through a dedicated securities account for share repurchase through centralized bidding, with repurchase funds of approximately 1.899 billion yuan. Midea Group's new round of repurchases was reviewed and approved by the board of directors on March 10 this year, with the planned repurchase amount not exceeding 5 billion yuan and not less than 2.5 billion yuan. According to the company's announcement on August 2, as of July 31, Midea Group had repurchased a total of 29.447 million shares through centralized bidding, and the total amount paid was 1.638 billion yuan.
Previously, BYD, Vanke, and Mindray Medical completed their share buybacks. BYD announced that as of June 13, this repurchase plan has been completed. The company has repurchased a total of 1.81 billion yuan through a dedicated securities account for centralized bidding transactions. Vanke A announced that as of June 30, the share repurchase plan was completed, and the company had spent a total of 1.292 billion yuan to repurchase 72.956 million shares. Mindray Medical announced in February this year that it had completed a share repurchase plan of 1 billion yuan, and the 3.2499 million shares repurchased were canceled in accordance with the law.
The strategy team of Guolian Securities pointed out that repurchases by listed companies are an important measure to maintain the stability of the stock market, and often indicate that the company's management is optimistic about the company's future development, or that the stock is undervalued. "Although it is impossible to judge the market position through the changes in the repurchase amount and the proportion of the repurchase amount to the total market value of A-shares during the period, the release of the repurchase plan has a positive impact on individual stocks, or may drive the medium- and long-term stock prices out of an independent market." According to statistics in 2020 2 Using data from January to June 2022, the strategy team of Guolian Securities found that 1, 10, 20, 60, 125 and 250 trading days after the listed companies released the repurchase plan, the excess return rate (compared to that of Shanghai and Shenzhen) 300) are 0.55%, 1.08%, 2.03%, 4.74%, 6.37% and 11.01% respectively. In addition, compared with high-valued companies, listed companies in the low-valued range will gain greater excess returns in the long term after issuing repurchase plans.
Some insiders believe that listed companies’ repurchases with real money can boost investor confidence to a certain extent and convey management’s optimism about the company’s intrinsic value and development prospects. However, the stock price trend in the secondary market ultimately depends on the company's development status and profitability.
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