It is proposed to launch a repurchase, and it is intended to use its own funds to create value returns. On June 4, 2024, the board of directors decided to exercise the share repurchase authorization to repurchase H shares in the open market in due course. The maximum amount of capital to be used is HK$5.80 billion. It is authorized to repurchase up to 118 million H shares, accounting for 10% of the total number of H shares issued by the company on the day the special resolution was passed at the annual shareholders' meeting, and maintaining sufficient public shareholding. The company plans to use its own financial resources to disburse the funds required for share repurchases, and will not use the proceeds from the listing of H shares on the main board of the Hong Kong Stock Exchange Limited in September 2022.
According to the announcement, Wanwuyun's board of directors believes that under current market conditions, the repurchase of shares will show that the company has full confidence in its own business development and prospects, and ultimately benefit the company and create value returns for shareholders, which is in line with the overall interests of the company and shareholders.
Since December 11, 2023, the company has carried out a series of repurchases of its H shares on the Hong Kong Stock Exchange.
As of April 29, 2024, the company had repurchased a total of 6.027,500 H shares and cancelled a total of 5.5821 million H shares. We believe that the company's current repurchase does not rule out subsequent cancellations, which may further promote the optimization of the equity structure and enhance shareholders' rights and interests.
Employee shareholding adjustments to maintain long-term stability. In order to further strengthen internal supervision and management transparency, enhance the long-term stability of employee shareholding, and promote the company's sustainable development, as of May 31, 2024, the company adjusted the employee shareholding platform structure and set up a management committee to manage the employee shareholding platform. Mr. Zhu Baoquan (Chairman, Executive Director and General Manager of the Company), Ms. Xiang Yun (Chairman of the Company's Supervisory Committee), Mr. Wu Jianxia (Head of the Company's Human Resources and Administrative Service Center and Audit Center) and Mr. Wang Yufeng (head of the company's Xiangying Enterprise Service and Personnel and Financial Sharing Center) were respectively in Shenzhen Yuying Investment Management Co., Ltd. holds 25% of the shares and participates in the daily management decisions of the employee shareholding platform.
Deeply cultivate the three major strategies, and the first-mover advantage has been shown. By the end of 2023, the company had built a total of 621 butterfly city chassis, and carried out a total of 150 butterfly city process modifications, including 1124 residential property projects, of which 112 butterfly city process modifications were added in 2023. The overall efficiency improvement of the remodeled Butterfly City reached 4.5 percentage points. Wanwuliang Bank continued to expand in the five major tracks in 2023, and the customer matrix was further enriched. In 2023, the share of continuous linked transaction revenue between the company and Vanke fell further to 13.5%. In 2023, the number of users of Pineapple No. 1 reached 3.165 million times, and the number of users of Black Cat traffic devices reached 4.12 billion times.
In 2023, the company will combine business with AI, and “Spirit Stone” + “Flying Pigeon” will help continue to improve space efficiency.
Investment advice: “better than the market” rating. Based on the PE valuation and PS valuation, we give a reasonable value range of RMB 47.59 to $53.44 (equivalent to HK$51.72 to $58.08).
Risk warning: The industry faces downside risks and policies falling short of expectations.