①A-shares have started a new round of buybacks in June, with 18 listed companies proposing to repurchase more than 100 million yuan (see attached image); ②After Guangdong Songyang Recycle Resources announced a buyback notice on Wednesday night, its stock price rose for two consecutive days (see attached image); ③Ten listed companies including Beijing-Shanghai High Speed Railway announced plans to repurchase shares and cancel them (see attached image).
Recently, a new round of share repurchase wave has erupted in the A-share market. According to incomplete statistics by Cailian Press, as of June 15, a total of 18 listed companies including Beijing-Shanghai high-speed railway, Ningbo Shanshan, Hualan Biological, Zhongyin Babi Food, Beijing SuperMap Software, Tianjin You Fa Steel Pipe Group Stock, Liqun Commercial Group, Shanxi Lanhua Sci-Tech Venture, Shanghai DZH Limited, Yixintang Pharmaceutical, Liaoning Port, Teyi Pharmaceutical Group, Chongqing Iron & Steel, Hubei Biocause Pharmaceutical, Anhui Genuine New Materials, Chongqing Iron & Steel, WPG (Shanghai) Smart Water Public Co.,Ltd, and Aurora Optoelectronics announced their plans to repurchase shares, with the highest repurchase amount reaching 100 million yuan. The specific situation is shown in the figure below:
Among them, Beijing-Shanghai high-speed railway with a total market value of over 250 billion yuan ranked first in the amount of repurchase with 1 billion yuan. On June 13, Beijing-Shanghai high-speed railway announced that it planned to use 1 billion yuan of its own funds to repurchase shares. The repurchased shares will be used for the cancellation and reduction of the company's registered capital, and the repurchase price will not exceed 5.87 yuan/share. Haitong International Securities said in a research report on May 8 that as a transportation corridor and economic bridge connecting the north and south, Beijing-Shanghai high-speed railway has golden route assets, which provide a good foundation for stable and robust performance. In addition, market-oriented pricing will contribute to the elasticity of our line business, while the constant improvement of high-speed rail networks will contribute to the growth of cross-line businesses.
Shanshan, a global leader in negative electrode materials and polarizers, ranks second with the highest repurchase amount of up to 400 million yuan. On June 6th, Shanshan announced that it plans to repurchase shares with an amount of 200-400 million yuan, and the repurchase price shall not exceed 16.6 yuan/share. The purpose of the repurchase is to maintain the company's value and protect shareholder rights. According to data, Shanshan's sales of negative electrode materials reached 264,400 tons in 2023, up 44.55% year-on-year. Its production of synthetic graphite negative electrode materials has ranked first in the world for three consecutive years. According to CINNO Research, Shanshan's share of shipments of large-size (including TFT-LCD TVs/displays/notebook computers) polarizers will increase from 30% in 2022 to 33% in 2023, maintaining its global leading position. Zhang Lei and others at Zheshang Securities said in a research report on June 1 that Shanshan's fast-charging consumer products continued to lead the market share. The company has achieved batch shipments of 5C products and ton-level supply of 6C products. The power-type fast-charging products have achieved large-scale supply of 4C and 5C products, and the client standardization of 6C products has been completed. The company's technical advantages in fast-charging products have been further expanded, and its cooperation with leading global battery companies has been deepened.
Lanhua Sci-Tech Venture, a coal chemical concept stock with a total market value of over 14 billion yuan, announced on June 11 that it plans to repurchase company shares of 100-200 million yuan, with a repurchase price not exceeding 15 yuan/share, for the cancellation and reduction of registered capital. Zhoutai and others at Minsheng Securities said in a research report on April 23 that Tongbao and Qinyu mines went into operation in November 2023 and January 2024, respectively, and Basheng Coal Industry with annual production of 900,000 tons started joint trial operation in March 2024. The second phase of the Luhe Coal Industry project with annual production of 900,000 tons is also making orderly progress and aiming for joint trial operation in September 2026. In 2023, Tongbao and Qinyu mines were still in a loss-making state, but with the gradual release of production capacity in 2024, their profitability is expected to improve.
Hualan Biological, a leading producer of flu vaccines with a total market value of over 11 billion yuan, announced on June 6 that it plans to repurchase shares of 100 million to 200 million yuan, with a repurchase price not exceeding 31.88 yuan/share, in order to maintain the company's value and protect shareholder rights. On the secondary market, Hualan Biological's stock price has fallen by a cumulative maximum of 51% since October last year. Wang Ruizhe at Qunsheng Securities said in a research report on January 24 that China's current flu vaccination rate is only around 3%, much lower than that in Europe and the United States. As flu epidemics in recent years have become more frequent, residents' awareness of getting flu vaccines will gradually increase, and the company is expected to benefit gradually. In terms of production capacity, Hualan Biological currently has six influenza vaccine workshops, with a production capacity reserve of 100 million doses of quadrivalent flu vaccines per year, compared to the general production capacity of 30 million doses among competitors, and has greater growth potential.
It is worth mentioning that Guangdong Songyang Recycle Resources (Songyang Resource) surged two consecutive limits after announcing the repurchase of shares on June 12. The company's stock price had hit seven consecutive downward limits from June 3 to June 12, with a cumulative maximum drop of 67% since May 23. The announcement showed that Songyang Resource plans to repurchase shares of 15 million to 30 million yuan, with a repurchase price not exceeding 20 yuan/share, all of which will be used for the implementation of Employee Shareholding Plan or Stock-Based Incentive Plan. According to data, Songyang Resource is mainly engaged in R&D, production, and sales of environmentally friendly recycled paper. It has been operating at a loss for two consecutive years. As of the end of the first quarter of this year, its current liabilities amounted to as much as 669 million yuan.
Except for Beijing-Shanghai high-speed railway and Shanxi Lanhua Sci-Tech Venture, according to Caixin Global's incomplete statistics, as of June (June 1 to June 15), the A-share listed companies that repurchased shares for cancellation also included Liqun Commercial Group, Shanghai DZH Limited, Yixintang Pharmaceutical, Hubei Biocause Pharmaceutical, Ningbo Bird Co.,Ltd., Top Resource Energy, Zhejiang Sunriver Culture Tourism, Guoli Commercial Group, and Lingdian Youshu. See the details below:
