"I bought Sinopec , so don't be afraid of life." Sinopec, which was once called a certain arbitrage by stock analysts, has new developments.
November 30, Sinopec announced that as of November 30, 2022, the plan of Sinopec Group to increase its holdings of the company's H shares through its wholly-owned subsidiary overseas subsidiary has been implemented.
Previously, the company also completed the A shares repurchase. On November 25, Sinopec actually repurchased 442 million A-share shares of the company, with a total amount of RMB 1.888 billion.
This repurchase is the first share repurchase in 22 years since Sinopec went public, and it is a big deal. So why does the company make such a big repurchase? What impact does this repurchase have on 's share price ?
repurchase shows "sincerity"
Review of the cycle of the petrochemical industry, the entire industry is showing a downward trend, but it can occasionally rise. And it is hard to say when this "occasional" will come and how long it will last.
Take our recent cycle. It was around 2015. Our cycle was the beginning. By 2019, this cycle had lasted for three or four years. The reasons behind it are very complicated, not only due to oil prices, but also due to supply and demand imbalance.
. The many phenomena shown in the development of the industry and the trend of economic operation of indicate that the cyclical top of the petrochemical industry is coming with rapid growth in performance. Naturally, the risks will gradually increase.
At present, the market generally believes that the trough of this cycle is likely to occur between 2023 and 2024, and the new round of industry cycle highs may have to wait until after 2025. It is precisely because of this uncertainty that Sinopec is not favored by investors.
In general, the petrochemical industry is an important pillar industry of the national economy. It has a high degree of industry correlation and a wide product coverage, which plays an important role in stabilizing economic growth, improving people's lives, and ensuring national defense security. Therefore, as China's largest petrochemical enterprise, Sinopec has relatively good development prospects.
Although this repurchase has not fluctuated much to the stock price of Sinopec, for investors, especially those who are optimistic about Sinopec for a long time, it is the stabilization needle in their hearts.
Source: Petroleum and Chemical Park
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