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China Fortune Financial News reported on September 26th (Reporter Zhang Chenjing) following the "bold" repurchase by Wens Foodstuff Group (300498.SZ), the pig farming leader Muyuan Foods (002714.SZ) also announced a maximum 4 billion yuan share repurchase plan today.

Tonight, Muyuan Foods announced that the company plans to repurchase shares through centralized competitive trading, with a repurchase amount of 3 billion yuan to 4 billion yuan, funding sources from self-owned funds, self-raised funds, with a repurchase period within 12 months. The repurchased shares will be used for employee shareholding plans or stock-based incentives. If the maximum repurchase amount of RMB 4 billion in this repurchase is fully utilized, the repurchase amount would account for approximately 2.09% of the company's total assets, about 6.24% of the equity attributable to the shareholders of the listed company.

A share buyback typically indicates stabilizing stock prices, and the proposed maximum repurchase price in this announcement does not exceed 58.60 yuan per share, 46.72% higher than the current price. Muyuan Foods' stock price has been weak in the past six months, hitting a near six-month low on September 23. As of today's close, Muyuan Foods' stock price was reported at 39.94 yuan per share.

In the announcement, Muyuan Foods stated that the share repurchase is based on confidence in the company's future sustainable development and recognition of the company's value. The repurchased shares will be used for employee shareholding plans or stock-based incentive plans, further improving the company's governance structure, establishing long-term incentive and restraint mechanisms, ensuring the achievement of the company's long-term operating goals, and enhancing the overall value of the company.

It is worth mentioning that several investors had suggested on interactive platforms days before the announcement of this repurchase plan that the company initiate a repurchase to boost the stock price.

In fact, this is Muyuan Foods' second large-scale repurchase plan in the past two years. In 2023, the company repurchased shares with its own funds close to 2 billion yuan, the controlling shareholder and actual controller's son, some executives and core personnel voluntarily increased their stock holdings by over 2 billion yuan.

Regarding this, muyuan foods stated: "In the future, the company will adhere to deepening its main business, continue to do a good job in operations and management, constantly improve the quality of development, and reward investors with good performance. Currently, the company has entered a stable development stage, capital expenditures will remain at a low level, cash flow will become more abundant. While enhancing its own operational quality, the company will better coordinate the dynamic balance between performance growth and shareholder returns, establish a 'long-term, stable, sustainable' multi-channel shareholder return mechanism, and share the company's development achievements with shareholders."