327 A-share companies spent nearly 44 billion yuan to buy back shares during the year
Our reporter Wu Xiaolu
After just completing the repurchase plan of over 5 billion yuan at the end of September, Gree Electric recently launched a second round of repurchase plans during the year. It intends to use its own funds of no less than 3 billion yuan and no more than 6 billion yuan in centralized bidding transactions. Repurchase the company's A shares.
In fact, since this year, it is not uncommon for A-share listed companies to implement second rounds of repurchase.
According to the data of Flushing iFinD, a reporter from "Securities Daily" showed that as of October 15, 327 listed companies spent 43.993 billion yuan to implement repurchase during the year, and 12 companies have started the second round of repurchase.
From the perspective of repurchase purposes, over 70% of companies are used to implement equity incentive plans.
Yin Yue, chief market analyst of the Yuekai Securities Research Institute, told the "Securities Daily" reporter that the proposal of the repurchase plan reflects the company’s management’s full confidence in the future development and recognition of the company’s value. The repurchased shares are used for employees. Shareholding plans or equity incentives can help stimulate the subjective initiative of company employees and further improve the corporate governance structure.
As far as the secondary market is concerned, the large-scale repurchase program is conducive to enhancing investor confidence in the short term and positively boosts the company's stock price.
From the perspective of the amount of repurchase implemented during the year, 96 of the 327 companies mentioned above have a cumulative repurchase value of more than 100 million yuan, of which 9 companies have repurchased more than 1 billion yuan, and Gree Electric took the lead with 5.182 billion yuan.
Judging from the latest progress of the repurchase, 185 companies’ share repurchases have been implemented and 142 are in progress.
According to the reporter's analysis, including Gree Electric, 12 companies including Midea Group and Youngor have implemented the second round of repurchase this year. Among them, the second round of repurchase by three companies including Palm Fun Technology, Golden Unicorn, and Yuanwanggu The implementation is complete.
"Gree Electric and other companies implement the second round of repurchase, and the signal of underestimation is more obvious to the market." Wang Chenguang, managing director of the investment banking department of Pacific Securities, told the reporter of "Securities Daily" that the main reasons for listed companies to buy back shares are major shareholders and The management is optimistic about the company's development prospects.
Repurchase is also helpful to boost confidence in the secondary market and maintain stock price stability. It also reflects the company's relatively sufficient cash flow.
From the perspective of repurchase purposes, 248 companies use equity incentives or employee stock ownership plans, that is, implement equity incentive plans, accounting for 75.84%.
"The repurchase of shares is to further improve the company's long-term incentive mechanism, attract and retain outstanding talents, and fully mobilize the enthusiasm of the company's senior management, core and backbone personnel." Most of these companies described in the repurchase announcement.
And most companies said that if they fail to implement equity incentives or employee stock ownership plans within three years of the completion of the share repurchase, the unimplemented part of the shares will be cancelled according to law.
In addition, some listed companies repurchase shares for conversion of convertible bonds, or directly cancel them to reduce the company's registered capital.
Market participants believe that repurchase and cancellation reduce the company's registered capital, reduce the outstanding share capital, and optimize the company's capital structure, which is one of the ways for listed companies to balance the proportion of equity assets and debt assets.
From the perspective of industries (Shenwan First Class Classification), the industries with high cumulative repurchase amounts during the year were household appliances, non-banking finance, and pharmaceuticals, with repurchase amounts of 7.36 billion yuan, 4.828 billion yuan and 3.939 billion yuan respectively.
From the perspective of the number of companies implementing repurchase, the number of companies implementing repurchase in the pharmaceutical, biological, chemical and electronic industries is relatively large, with 40, 25 and 23 respectively.
From the perspective of the sector, among the companies implementing repurchase, there are 159, 107 and 60 companies on the main board, SME board and GEM respectively. The cumulative repurchase amount during the year was 32.86 billion yuan, 7.935 billion yuan and 3.023 billion yuan. .
In addition, the sci-tech innovation board also saw its first repurchase order this year.
According to Tianzhun Technology’s announcement, the company implemented the repurchase at a cost of 175 million yuan from August 27 to September 22. The repurchased shares will be used for employee stock ownership plans or equity incentives. If the share repurchase is not completed 36 If the aforementioned use is implemented within a month, the unused part will be written off according to relevant procedures.
(Securities Daily)