In September this year, kangji medical (09997) quickly dropped to 4.91 HKD during a "six consecutive declines" at the beginning of the month, with a total drop of 15.20% in the range. However, on September 11, despite a significant drop, this downward trend was stopped the next day, leading to nearly a month of increasing trend, touching a price peak of 6.74 HKD on October 8. The reasons for this rebound, apart from external factors such as the Hang Seng Index's large cap moving, also include the company's continuous share buybacks.

The Zhitong Financial APP observed that on November 22, kangji medical's stock price closed down 5.46%, showing a "three consecutive declines" trend. The company once again chose to boost market confidence through share buybacks. In the following seven trading days, kangji medical's stock price rose again, and how long this upward trend can last is undoubtedly a focus of investor attention.

If the stock price falls, then buy back.

According to statistics from the Zhitong Financial APP, from the beginning of 2024 to the present, kangji medical has accumulated 58 buyback instances, with a total of 7.5075 million stocks bought back and a buyback amount of 44.723 million HKD, accounting for 0.62% of the company's total share capital.

With frequent buybacks, kangji medical's stock price has risen by 12.43% year-to-date. Combining this year's buyback situation and stock price trends, the fluctuations and declines of kangji medical's stock price are closely related to the company's share buyback rhythm.

This year, kangji medical has a total of 5 key nodes for share buybacks, which are on December 22, May 30, September 11, October 16, and November 22, 2023. Among them, the buyback that started in December last year lasted for 17 days and ended on January 18; the buyback starting on May 30 lasted for 29 days and ended on July 18; the buyback starting on September 11 lasted for 9 days and ended on September 25; while the buybacks starting on October 16 and November 22 lasted only 4 days and 3 days respectively.

According to statistics from the Zhito Finance APP, on the 5 trading days before the aforementioned 5 buyback points, the stock price range drop of kangji medical was 10.57%, 6.08%, 9.67%, 8.81%, and 1.35%, respectively. It can be seen that whenever the company's stock price falls, kangji medical generally chooses to boost market confidence and stabilize the stock price through share buybacks.

Share buybacks are usually viewed as a bullish signal since this action indicates that the company is confident about its future prospects and is willing to use its own funds to repurchase shares. This behavior can reduce the number of circulating stocks in the market, increase eps and return on equity, potentially driving the company's stock price up. Statistics from the Zhito Finance APP indicate that the stock price increases for kangji medical during the 5 repurchase periods this year were 2.50%, -8.34%, 8.38%, 3.15%, and 5.60%, respectively. It can be seen that this year, not every share buyback by kangji medical was able to drive the stock price up.

The performance of kangji medical's share buybacks at the aforementioned five time points may reflect changes in the market's attitude. Data shows that in the first two company share buybacks, kangji medical lasted for 17 days and 29 days, repurchasing 1.971 million shares and 4.619 million shares respectively, accounting for 87.78% of this year's buybacks.

Generally speaking, the reaction of the secondary market is positively correlated with the scale of the company's buybacks. If the scale of buybacks is large, the market response may be more significant; conversely, it may be more subdued. However, the performance of kangji medical is clearly contrary to this; excluding the rising trend in September, the company only repurchased 0.275 million shares and 353,000 shares during the two periods in October and November, respectively, quickly stabilizing the stock price, with price increases performing better than after the first two buybacks this year.

Will the stock price continue to rise, or is a washout imminent?

In mid to late September this year, supported by the dual stimulation of the large cap index launch and the share buybacks, the stock price of kangji medical surged rapidly, with the maximum range increase reaching 37.27% from September 11 to October 8.Position cost distribution.It is not difficult to see the frenzy in the secondary market, with the profit ratio of the chips rising sharply from 1.75% to a maximum of 93.64%.

However, as the Hong Kong stocks began to correct overall on October 8, the stock price of kangji medical also plummeted rapidly after reaching the range high on the same day, dropping to a low of 5.66 HKD within seven trading days, with a maximum decline of 16%. The company's stock price broke below the 5-day line on October 16. From the market situation, from October 16 to November 20, kangji medical entered a period of stable consolidation for about a month during which the company's stock price only increased by 1.53%. The consolidation phase was undoubtedly a good opportunity for buyers to accumulate chips.

During this one-month adjustment, many retail investors of kangji medical chose to cut losses, handing over their bloodied chips, and the peak of chips began to gradually cluster near the cost line. At this time, 70% of the chips were concentrated in the 5.60-6.12 HKD range, and the profit ratio was once again pressed down to 11.20%. It can be seen that on November 21, the market trading volume of kangji medical significantly decreased to only 0.2375 million shares, in stark contrast to the volumes over a million shares in the two trading days before and after, indicating that there were few sell orders in the market and most of the chips were locked in by block orders.

Therefore, after the company announced a new round of share buyback plans on the night of November 22, on November 25, the main funds began to raise the company's stock price out of the cost range due to the bullish news. A significant characteristic of this round of the market is the rapid disappearance of bottom chips, while the top chips easily crossed the cost line, forming a dense peak above it.

However, it is worth noting that during the four trading days from November 28 to December 3, the trading volume of kangji medical continued to expand, but the turnover ratio did not show significant growth. Even on December 3, when the trading volume was the largest, the turnover ratio was only 0.39%. A low turnover ratio usually indicates that both parties have basically reached a consensus, and the main funds have no intention of selling in the short term, so the stock price generally maintains its original running trend for further development.

From 'Cowboy' to the dairy industry giant, Niugen Sheng entered the cowshed at the age of 20 and worked at a cattle farm. Five years later, he entered Yili and started as a bottle washer. He was later promoted to workshop director. Starting in 1992, he served as the vice president of operation at Yili. In 1999, he left and created Mengniu.MACDFrom the perspective of indicators, since the MACD red column reversal appeared on December 2, it indicates that the current bullish trend has been confirmed.technical aspectsThis is an entry signal, and in the subsequent three trading days, although kangji medical experienced fluctuations in volume, the MACD red column continued to rise, indicating that the probability of its stock price increasing in the future is growing.

From the brokerage buy and sell positions, in the last 5 days, the largest buyer of kangji medical has been interactive brokers, which bought 1.4174 million shares as the largest buying seat; while the top three sellers were HSBC and two Hong Kong Stock Connect channels, selling 0.4342 million shares, 0.4265 million shares, and 263,000 shares respectively.

Although interactive brokers has been the largest buyer of kangji medical in the last 5 and 20 days, on the most recent trading days of December 4 and 5, Citibank and CITIC Lyon alternated in taking the first buyer position, buying 0.7532 million shares and 852,000 shares respectively.

From the real-time capital flow of kangji medical, on December 5, while m funds continued to inflow and large orders and small orders saw slight outflows, l funds showed a significant inflow, thus driving the overall capital to continue net inflow, with a net inflow of 5.8428 million Hong Kong dollars for kangji medical on that day.