Multiple listed companies jointly announced an increase stake & buy back, with the listed companies under the Cosco Shipping Group taking action. A company insider stated to Cailian Press that theoretically, the buyback cancellation measure should benefit the stock price of listed companies. It is necessary to pay attention to the subsequent buyback progress and the actual amount of accumulated buybacks.

Tonight, Bank of China listed the plans for share buybacks and cancellations for Cosco Shipping Holdings (601919.SH/01919.HK) and Cosco Shipping Development (601866.SH/02866.HK). Meanwhile, Cosco Ship Engy (600026.SH/01138.HK) and Cosco Shipping Specialized Carriers (600428.SH) will receive shareholdings from controlling shareholders.

Cosco Shipping Group stated that this increase stake & buy back plan is based on a firm belief in the future development prospects of the listed company and the recognition of its medium- to long-term value. The plan was formulated after considering factors such as the financial condition of the listed company, future development, and reasonable valuation levels.

According to the plan, Cosco Shipping Holdings intends to repurchase a total number of A shares ranging from 50 million shares to 0.1 billion shares. Based on the A shares repurchase price limit of 20 yuan per share, the estimated A shares repurchase amount is between 1 billion yuan and 2 billion yuan. Concurrently, for H shares, Cosco Shipping Holdings also plans to implement H share repurchases under the general authorization granted at the 2023 annual general meeting and the 2024 first A-category shareholders meeting and the 2024 first H-category shareholders meeting based on the repurchase general authorization given.

Cosco Shipping Development plans to repurchase 40 million to 80 million A shares, with an estimated repurchase amount between 0.1436 billion yuan and -0.2872 billion yuan based on the maximum repurchase price of 3.59 yuan per share. Additionally, the company will implement the repurchase of company H shares based on the general authorization approved at the June 2024 shareholders' meeting.

The shares repurchased by Cosco Shipping Holdings and Cosco Shipping Development this time will be fully cancelled and the registered capital reduced within a period not exceeding 6 months from the date of approval of the buyback share plan at the shareholders' meeting. The source of funds for repurchasing A shares comes from a special loan provided by Bank of China Shanghai Branch and the company's own funds.

At the same time, Cosco Ship Engy and Cosco Shipping Specialized Carriers received a notice on October 18 from their indirect controlling shareholder, Cosco Shipping Group. They plan to increase their A share holdings through centralized bidding from Cosco Shipping Group and its wholly-owned subsidiary, Sinotrans Limited. The implementation period for the increase stake & buy back plan is within 6 months from the announcement date. The total amount of the increase stake is no less than 0.679 billion yuan and no more than 1.358 billion yuan for Cosco Ship Engy, and no less than 0.144 billion yuan and no more than 0.288 billion yuan for Cosco Shipping Specialized Carriers.

The major shareholders increased their holdings of A-shares in Cosco Ship Engy and Cosco Shipping Specialized Carriers with funds provided by Bank of China Shanghai Branch's special loans and the group's own funds. The implementation period is 6 months from the date of announcement.

According to information provided by Cosco Shp Sg Group, as of September 30, 2024, the total market value of 11 listed companies controlled by Cosco Shp Sg Group reached 461.8 billion yuan, an increase of 171% compared to before the group's restructuring in 2016, and a 33% increase from the beginning of this year.

In addition to Cosco Shp Sg Group, companies in the China Merchants Port Group sector also recently announced plans to increase stake and buy back.

Among them, China Merchants Energy Shipping (601872.SH) plans to repurchase shares for an amount ranging from 0.22 billion yuan (inclusive) to 0.443 billion yuan (inclusive) for cancellation; China Merchants Port Group (001872.SZ) plans a total repurchase amount not less than 0.195 billion yuan (inclusive) and not more than 0.389 billion yuan (inclusive).

Nanjing Tanker Corporation (601975.SH) shareholder China Yangtze Shipping Group plans to increase the company's A-shareholding, with an overall increase proportion of no less than 1% of the total share capital and no more than 1.72% of the total share capital, with an implementation period of 6 months from the date of announcement; Sinotrans Limited (601598.SH) major shareholder China Foreign Shipping Long Shipping Group plans to increase the company's A-shareholding within 6 months from the date of announcement, with a total amount not less than 0.25 billion yuan (inclusive) and not more than 0.5 billion yuan (inclusive); as for Liaoning Port (601880.SH), its major shareholder Dalian Port Group plans to increase the company's A-shareholding, with a total amount not less than 0.25 billion yuan (inclusive) and not more than 0.5 billion yuan (inclusive), with a term of 12 months from the announcement date.