Shenzhen Business Daily Reading Client Reporter Zhong Guobin
Towards the end of the year, A-share buybacks continued to heat up. On the 13th, Gree Electric announced that as of the 11th, the company had repurchased a total of 6137 through the special ** account for repurchase810,000 shares, with a total repurchase amount of 201.3 billion yuan. On the same day, 10 listed companies, including Nanshan Aluminum, Bairun Co., Ltd., and Credit Testing Standards, also disclosed repurchase-related matters.
This is just a microcosm of the recent new wave of buybacks. As of the 14th, 329 A-share companies have repurchased in December, with a repurchase amount of 7.8 billion yuan. Since the beginning of this year, a total of 1,316 A-share companies have repurchased, with a cumulative number of 83 shares3.7 billion shares, with a repurchase amount of more than 80 billion yuan.
A number of industry leading stocks have recently repurchased. Gree Electric repurchased 25.79 million shares in December, with a repurchase amount of 84.9 billion yuan;CATL repurchased 333 in the same period390,000 shares, with a repurchase amount of 57.6 billion yuan. In addition, 16 companies such as Aier Ophthalmology repurchased more than 100 million yuan in the same period.
Judging from the number of companies that have issued repurchase plans, the scale of subsequent buybacks may still be further expanded. Poly Development announced on the 11th that it intends to repurchase 1 billion to 2 billion yuan, and the repurchase ** does not exceed 15$19 shares. In December, 134 companies have issued board plans or proposed buybacks, corresponding to a total amount of about 160300 million yuan. If these buybacks are implemented before the end of the year, the amount of buybacks this year is expected to exceed 100 billion yuan.
While the scale of the buyback continues to expand, the buyback price also continues to rise. Recently, the upper limit of the proposed repurchase of many companies such as Xinhua Shares, Huazhi Liquor Company, Tongwei Shares, and Shengxin Lithium Energy is higher than the latest ** price. For example, Shengxin Lithium Energy intends to repurchase and cancel a total of 520,000 shares that have been granted but have not yet been lifted, and the upper limit of repurchase ** is 2786 yuan shares, while its latest ** price is 21$87 shares. The upper limit of Xinhua share repurchase** is 4859 yuan shares, the latest ** price is 31$5 shares.
It is worth noting that a number of listed companies have recently announced that they intend to cancel the repurchased shares to reduce the registered capital.
For example, Midea Group recently announced that it plans to repurchase the remaining 6980 in the proposal on February 23, 2021The purpose of the 790,000 repurchased shares was changed to "for cancellation and reduction of the company's registered capital." ”
Coincidentally, Sen Kirin disclosed on the 12th that it intends to change the use of repurchased shares from the later implementation of equity incentives to "cancel and reduce registered capital" and cancel 520 shares560,000 shares. According to incomplete statistics, on the evening of December 12 alone, 16 companies such as Qizheng Tibetan Medicine, Chujiang New Materials, and Huilv Ecology announced that they planned to cancel part of the repurchased shares.
The cancellation of repurchased shares by some companies is related to the failure or early suspension of the equity incentive plan. For example, Jiajiayue repurchased 899 in 2020 and 2021990,000 shares, the company said that it has not yet used the repurchased shares to implement equity incentives, and the corresponding shares will be cancelled. Yuanshang shares recently announced that combined with the company's current industry market environment and the company's future development plan, the incentive plan will be terminated, and the repurchase and cancellation of restricted **1.06 million shares.
Yang Chao, a strategic analyst at the China Galaxy Research Institute, said that the increase in the number of companies repurchasing shares for cancellation is one of the important signals of the bottom of the market. The high number of shares repurchased means that the company's share price is currently undervalued, and listed companies are taking steps to increase the value of their investments. Buybacks are used for cancellation and corresponding reduction of registered capital, which can increase the earnings per share of listed companies, which is conducive to boosting the company's stock price and investor confidence.