① The market picked up, and listed companies began to raise repurchase prices; ② 6 companies in the two markets adjusted their repurchase prices due to rising stock prices; ③ the buybacks of Novus and Nengke Technology are still in progress; ④ ST Shimao has reached the minimum repurchase limit and is still promoting repurchases.
Financial Services Association, March 26 (Reporter Luo Yichen) The recovery in the stock market has begun to trigger a chain effect. Due to the recent general rise in stock prices, many companies' repurchase plans have been affected. In order to show the determination of management, New Novus (300765.SZ) and Nengke Technology (603859.SH) announced repurchase price increases one after another, making it a spectacular sight.
According to a Financial Services Association reporter, starting from July 2023, about 6 companies in the two markets have taken the initiative to announce repurchase price increases due to stock price increases exceeding the upper limit. According to Choice data, more than 40 companies raised repurchase prices during this period, but most of them were due to equity distribution, and there are still a few companies that chose to adjust prices due to excessive stock price increases.
Source: Produced by the Financial Services Association
Of these 6 companies, most of the latest closing prices (closing price on March 26) exceeded the initial repurchase price limit. Among them, the stock price trend of functional food manufacturer New Novell was the strongest, causing the company to raise the repurchase price twice. Its latest closing price was 36.41 yuan/share, which is gradually approaching the adjusted repurchase limit of 38 yuan/share. Considering that the repurchase target is far from being achieved, it is not ruled out that the company will also raise the repurchase price for the third time.
According to reports, New Novus's current repurchase plan was reviewed and approved on September 20, 2023. It is proposed to repurchase 10 million to 20 million shares, with a repurchase limit of 21.09 yuan/share. However, since then, the company's stock price has continued to rise, once approaching the 50 yuan/share mark, causing the repurchase plan to progress quite slowly. As of February 29 this year, the company had only repurchased less than 1.4 million shares.
The latest closing prices of Wuxin Tunneling (835174.BJ), Nenco Technology, Honchuan Smart (300964.SZ), and Becken Energy (002828.SZ) have also increased to varying degrees compared to the original repurchase limit. Currently, Nengke Technology's repurchase is still in progress, and the repurchase plans of the other three companies announced their end in January of this year.
The stock price trend of Nengke Technology is quite representative. The company began a repurchase in early February of this year. At that time, the stock price was low. The repurchase was limited to 40 yuan/share, but with the rapid rebound in the market, the company's stock price quickly broke through, so there was this round of increases.
In contrast, ST Shimao (600823.SH)'s situation is quite special. The meaning of using repurchases to stimulate stock prices is even stronger, and the company does not hide that repurchases are just to make a difference in price. According to reports, ST Shimao's repurchase plan was reviewed and approved on June 27, 2023. It is proposed to repurchase 100 million yuan to 200 million yuan, with a repurchase limit of 1.30 yuan/share. After the announcement of the plan, the company's stock price once “rose sharply in volume and price”. Affected by this, ST Shimao announced in August last year that it would raise the maximum repurchase price to 1.80 yuan/share, but then its stock price rose to around 1.80 yuan/share and began to dive. The latest closing price was only 1.11 yuan/share.
It is worth noting that although the repurchase plan has been in progress for more than half a year and the stock price has been below the repurchase limit for more than a month, ST Shimao's repurchase has been slow to complete. As of March 4 this year, the company has repurchased 137 million yuan, reaching the minimum promised limit, but it emphasizes that the repurchase is still not over.