Source of this article: Times Finance Author: Gao Wenxun
Image source: Tuchong
"This is going to start a reorganization, I'll do it first, you can do it!" An investor joked in the stock bar of Sinopec (600028.SH) that his so-called "solidification" is Sinopec's huge repurchase plan.
htmlOn the evening of September 19, Sinopec disclosed an announcement stating that the company plans to use no less than 1.25 billion yuan and no more than 2.5 billion yuan of its own funds through the Shanghai Stock Exchange system through the Shanghai Stock Exchange system. The repurchase price is not higher than 150% of the average trading price of the company's stock in the 30 trading days before the board of directors passed the share repurchase resolution. The term of this share repurchase will not exceed 3 months from the date of approval of the board of directors. All the repurchased shares will be cancelled and the registered capital will be reduced.A basic chemical researcher in a securities firm told Times Finance that Sinopec's repurchase plan was disclosed on August 29. "The information disclosed now mainly tells everyone that the dedicated account for Sinopec's share repurchase has been established, which means that the repurchase can start at any time."
As the recent stock market adjustment, industrial capital has " bottom-up " A-share listed companies.
Wind data shows that since September this year, 16 A-share listed companies, including Hikvision (002415.SZ), Hotspot Bio (688068.SH), and Gaode Infrared (002414.SZ), among which Hikvision's proposed repurchase amount is the largest, "not less than 2 billion yuan, no more than 2.5 billion yuan."
Sinopec may be undervalued
was stimulated by good news for repurchase. In the early trading of September 20, Sinopec opened high at 4.23 yuan, but fell back in the afternoon, and finally rose 0.96% to close at 4.22 yuan.
However, in Sinopec's stock bar, investors are talking about repurchase plans.
Some people think that "most of the repurchases are in the call auction for at the end of trading, and the good show is at the end of the day", but some investors believe that "it is likely that dealer knew to repurchase yesterday. It was shipped sideways at a high level today." Some investors are worried, "Everyone shouted for the rise, but I feel that it is not stable"...
Regarding the purpose of this repurchase, Sinopec stated in the announcement, "Because the closing price of the company's stock is lower than the company's latest net assets per share," Maintain the company's value and shareholders' rights, enhance investor confidence, and comprehensively consider factors such as the company's financial status, future development and reasonable valuation level. It plans to use its own funds to repurchase shares to promote the matching of the company's stock market price with its intrinsic value."
Wind data shows that in the past three years and the first half of this year, Sinopec's debt-to-asset ratio was 50.04%, 49.02%, 51.51% and 54.77% respectively; net assets per share were 6.11 yuan, 6.13 yuan, 6.40 yuan and 6.50 yuan respectively.
However, Sinopec's current share price is only 4.22 yuan, which is indeed far lower than the net assets per share of 6.50 yuan.
Regarding the repurchase plan and stock price performance, on September 20, a staff member of the Securities Department of China Petroleum and Chemical Corporation said to Times Finance , "We are not convenient to accept media interviews, and the information shall be subject to announcements."
From the performance, China Petroleum and Chemical Corporation achieved operating income of 1612.13 billion yuan in the first half of this year, an increase of 27.9% year-on-year; net profit attributable to shareholders was 43.53 billion yuan, an increase of 10.4% year-on-year.
Everbright Securities Research report believes that Sinopec is the leading domestic petrochemical industry, with capital support continuing to increase, gradually increasing the layout of new energy, and broad growth prospects. It is expected that the company's net profit attributable to shareholders from 2022 to 2024 will be 734/754/77.8 billion yuan respectively.
"Sino-Petrochemical's value is indeed slightly underestimated. It just implemented the dividends in the semi-annual report on September 19, and now it is conducting stock repurchase. Overall, the company still wants to do things." The above-mentioned basic chemical researcher of the securities firm told Times Finance that according to the dividend of 0.16 yuan per share of Sinopec, the dividend yield can reach 8%, "This is very valuable for investment."
repurchase stimulates stock prices different
stock repurchase first originated in US capital market . After years of development, it has become a common method in the capital market. It is widely used to optimize capital structure, enhance company value, or transmit positive signals when the company's stock price is undervalued.
Founder Securities research report believes that whether from a theoretical perspective or from the historical experience of US stock or A-shares, stock repurchase can indeed support the stock price to a certain extent and even drive the stock price to rise. This means that under the same profit situation, stock repurchase will be beneficial to the stock prices of listed companies.
this year 9 Since the beginning of the month, A-share market has continued to adjust, and some listed companies have begun to disclose stock repurchase plans one after another, but the market reactions are different.
For example, Jiuzhou Pharmaceutical (603456.SH) took the lead in disclosing the "Announcement on the Repurchase of Company Shares through Centralized Bidding Trading" on September 1. The total amount of funds to repurchase shares of the company is "not less than 50 million yuan, not more than 100 million yuan", and the repurchase price will not exceed 60 yuan per share.
However, the share price of Jiuzhou Pharmaceutical rose in the morning of September 1 for only less than 30 minutes and began to decline. Finally, it rose by 0.80% in a single day to close at 41.38 yuan. As of the closing on September 20, the stock has fallen to 37.09 yuan.
Wind data shows that more than ten listed companies including Guanghui Energy (600256.SH), Kailaiying (002821.SZ), Gaode Infrared, Rejing Bio, Hikvision, etc. have also disclosed stock repurchase plans one after another. Among them, Hikvision's planned repurchase funds are the highest, "not less than 2 billion yuan, not more than 2.5 billion yuan"; Guanghui Energy's planned repurchase funds are the first, "not less than 800 million yuan, not more than 1 billion yuan"; Kailaiying's planned repurchase funds are the first, "not less than 400 million yuan, not more than 800 million yuan"...
Data comes from wind, Times Finance Tabulation
From the market performance, after Guanghui Energy disclosed the stock repurchase plan on September 3, its stock price once hit 15 .20 yuan has a high price, but it has fallen back to 12.85 yuan recently; Kelley Ying's stock price has hit a low price of 139.01 yuan since the disclosure of the repurchase plan on September 6; Hikvision disclosed the stock repurchase plan on September 16, the stock price rose slightly to 30.23 yuan...
However, on the evening of September 19, Sichuan Yi Co., Ltd. (603100.SH) also disclosed the stock repurchase plan, intending to repurchase the stock at an amount of "not less than 62 million yuan, no more than 124 million yuan". The stock quickly reached the daily limit in the early trading on September 20, and the above rose 9.99% to close at 23.68 yuan.
"The circulating trading of each stock is different, and you cannot think it is a good thing as soon as you see the stock repurchase plan. "A person from a private equity fund in Jiangsu told Times Finance that most of the purpose of listed companies repurchasing stocks is to send positive signals to the market, but they are basically two uses.
"One is to directly cancel after repurchase, which is a good thing, because the total amount of stocks is small, and the net profit will not change for the time being, so the earnings per share increase. For example, Sinopec is to directly cancel after repurchase; the other is to be used for equity incentives or employee stock ownership plans. This operation method will not reduce the total number of stocks. Stocks are only transferred from shareholders in the secondary market to the hands of company executives and employees. After they complete their performance goals, they can choose to sell these stocks to cash out. Therefore, I personally believe that equity incentives for listed companies' stock repurchases are not a big benefit. "
In his opinion, compared with equity incentives, Sinopec's "shares repurchased this time are more favorable than those used for equity incentives.
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