news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

China Fund News reporter Wu Jun

"King Ning" keeps buying and buying back his own stocks.

Battery leader CATL announced on the evening of August 1 that as of the end of July, the company had repurchased 15.9915 million shares through centralized bidding transactions, with a total transaction amount of 2.711 billion yuan. The stock price has risen by more than 13% this year, with the latest share price at 180.30 yuan per share, and the total market value is about 793.1 billion yuan.

Share repurchases have the functions of optimizing the capital structure of listed companies, maintaining the investment value of companies, and conveying confidence to investors. This year, the A-share market has set off a "repurchase wave", and listed companies such as WuXi AppTec, San'an Optoelectronics, CATL, and SF Holdings have repurchased more than 1 billion yuan this year.

CATL's cumulative repurchase amount exceeds 2.7 billion yuan

The stock price has risen by more than 13% this year.

On the evening of August 1, CATL issued an "Announcement on the Progress of Repurchasing the Company's Shares". It stated that as of July 31, 2024, the company had repurchased a total of 15.9915 million shares of the company through the Shenzhen Stock Exchange's stock trading system in a centralized bidding transaction, accounting for 0.3635% of the company's current total share capital, with the highest transaction price of 194.10 yuan per share, the lowest transaction price of 146.31 yuan per share, and the total transaction amount of 2.711 billion yuan (excluding transaction fees).

It is understood that CATL reviewed and approved the "Proposal on the Repurchase of Company Shares" at the 25th meeting of the third board of directors held on October 30, 2023, agreeing that the company will use its own funds to repurchase part of the company's shares through centralized bidding transactions for the later implementation of equity incentive plans or employee stock ownership plans. The total amount of funds used for this repurchase shall not be less than RMB 2 billion (including principal) and not more than RMB 3 billion (including principal), the upper limit of the repurchase price is RMB 294.45 per share, and the repurchase period is within 12 months from the date on which the company's board of directors deliberates and approves the share repurchase plan. In view of the fact that the company's 2023 annual equity distribution has been implemented, the upper limit of the repurchase price will be adjusted from RMB 294.45 per share to RMB 289.44 per share from April 30, 2024.

Since the number of shares repurchased disclosed by CATL on June 30 was 14.4838 million shares and the total repurchase amount was 2.446 billion yuan, it can be seen that the number of shares repurchased in July reached 1.5077 million shares and the repurchase amount reached 265 million yuan.

Wind data shows that as of the end of July, CATL has repurchased 11.8485 million shares this year, and the repurchase amount has reached 1.951 billion yuan.

Judging from the company's financial situation, the 2024 semi-annual report disclosed by CATL two days ago showed that the company achieved operating income of 166.767 billion yuan in the first half of this year, a year-on-year decrease of 11.88%; the net profit attributable to shareholders of listed companies was 22.865 billion yuan, a year-on-year increase of 10.37%; basic earnings per share was 5.20 yuan.

According to SNE Research data, in the field of power batteries, CATL ranked first in the world in terms of power battery usage for seven consecutive years from 2017 to 2023. From January to May 2024, the company's global market share of power battery usage was 37.5%, an increase of 2.3 percentage points from the same period last year, still ranking first in the world; in the field of energy storage, the company ranked first in the world in terms of energy storage battery shipments for three consecutive years from 2021 to 2023. From January to June 2024, according to statistics from relevant institutions, the company's energy storage battery shipments continued to maintain the world's first market share.

In terms of stock price performance, CATL has increased by 13.14% this year. In January this year, the company's stock price once fell to 137.04 yuan per share, and then continued to fluctuate and climb. In May, it rose to 211.70 yuan per share, and then adjusted again. During this process, CATL continued to buy and repurchase its own stocks. As of August 1 this year, the stock closed at 180.30 yuan per share, and the latest total market value was about 793.1 billion yuan.

This year, the amount of repurchases by listed companies is about 116.6 billion yuan

Fund managers are optimistic about buybacks boosting stock value

As a basic institutional arrangement of the capital market, share repurchase plays a role in optimizing capital structure, maintaining the company's investment value, conveying confidence and increasing shareholder returns.

The "Several Opinions on Strengthening Supervision, Preventing Risks and Promoting High-Quality Development of the Capital Market" issued by the State Council in April this year proposed to study the inclusion of market value management of listed companies into the internal and external assessment and evaluation system of enterprises. Guide listed companies to repurchase shares and cancel them according to law. In May this year, the CSRC revised and issued the "Regulations on Strengthening the Supervision of Listed Securities Companies", which proposed to encourage the formation of a mechanism for implementing share repurchases, and actively improve shareholder returns and optimize governance structures through multiple dividends and repurchase cancellations in one year.

This year, the A-share market has seen a "buyback wave". Wind data shows that as of August 1, 1,796 companies have disclosed information on share buybacks this year, with a total buyback amount of 116.552 billion yuan and a total number of 11.748 billion shares. The buyback amount has significantly exceeded the total for the whole of last year.

Among them, 280 A-share listed companies repurchased funds of no less than 100 million yuan this year. Ten listed companies including WuXi AppTec, San'an Optoelectronics, CATL, SF Holdings, Baosteel, iHealth, Will Semiconductor, Hebang Biopharmaceuticals, Tongwei Co., Ltd., and Kaley Robotics all repurchased funds of more than 1 billion yuan this year.

A public fund manager said that he is optimistic about listed companies that are willing to pay dividends or repurchase stocks. The repurchase will bring confidence to investors, which means that the long-term investability of the stock market has improved. In addition, many listed companies choose to cancel their stock after repurchasing it, which is conducive to reducing the circulating share capital, increasing earnings per share, return on shareholders' equity, etc., thereby enhancing the intrinsic value of listed companies' stocks.

Editor: Captain

Review: Chen Mo

Copyright Notice

"China Fund News" enjoys the copyright to the original content published on this platform. Reproduction without authorization is prohibited, otherwise legal liability will be pursued.

Contact person for authorized reprint cooperation: Mr. Yu (Tel: 0755-82468670)