Finance Association, September 28 (Editor Li Chen) This week (September 23 to September 27), the repurchase wave of A-share listed companies continued. According to incomplete statistics from the Financial Federation, including Muyuan Co., Ltd., Meihua Biotech, Chihong Zincgermanium, Beijing Lear, Weimax, Jinhong Gas, Zhenxin Technology, Yawei, Opt, Rifeng, Qingyuan, Changsheng Bearing, Pinot, Hengji Daxin, and Cigu Technology revealed share repurchase plans this week. The details are as follows:

Among them, Muyuan Co., Ltd., a leading pig breeding company with a total market value of over 230 billion yuan, announced on September 26 that it plans to repurchase 3 billion yuan to -4 billion yuan of company shares for employee stock ownership plans or equity incentives. The repurchase price will not exceed RMB 58.60 per share. As of June 30, 2024, the total assets of Muyuan Co., Ltd. were about 191.6 billion yuan, and the monetary capital was 20.36 billion yuan. Net profit attributable to shareholders of listed companies for the first half of 2024 was 0.829 billion yuan. Muyuan Co., Ltd. said that if the maximum repurchase capital of 4 billion yuan is fully used, the repurchase capital will account for about 2.09% of the company's total assets and 6.24% of the company's owners' equity belonging to shareholders of the listed company. Wei Hongmei of Dongguan Securities said in a research report released on September 27 that Muyuan Co., Ltd. is a leader in integrated pig breeding in China. It continues to extend the industrial chain, has significant competitive advantages, and is still continuously improving its internal skills. Looking ahead to Q4 and next year's Q1, China's pig farming profits are expected to remain at a good level, and there is still plenty of room for improvement in the medium to long term scale and concentration of the pig breeding industry. Analysts expect the 2024-2025 EPS of Muyuan Co., Ltd. to be 3.16 yuan and 4.43 yuan, respectively, and the corresponding PE will be 13 times and 9 times, respectively.

It is worth noting that Muyuan Co., Ltd. has implemented repurchase plans to increase its holdings many times before. Muyuan Co., Ltd. announced on October 24, 2023 that some senior directors and supervisors of the company plan to increase their shares by 1 billion yuan to 1.2 billion yuan. Muyuan Co., Ltd. announced on October 19, 2023 that the controlling shareholder and the son of the actual controller intend to increase their holdings by a total of 0.5 billion yuan to 1 billion yuan. Muyuan Co., Ltd. announced on December 12, 2022, that it plans to repurchase the company's shares with a total repurchase amount of not less than 1 billion yuan and no more than 2 billion yuan. The repurchase price will not exceed 72.24 yuan/share, all of which will be used for employee stock ownership plans or equity incentive plans. Coincidentally, another A-share listed company, Kweichow Moutai, also proposed a large repurchase plan last week. On September 20, Kweichow Moutai announced that it plans to repurchase the company's shares with its own capital of not less than 3 billion yuan (inclusive) and no more than 6 billion yuan (inclusive). The share repurchase will be used to cancel and reduce the company's registered capital. The share repurchase price will not exceed 1795.78 yuan/share. Looking further, Tongwei Co., Ltd. announced in April this year that it plans to use no less than 2 billion yuan (inclusive) and no more than 4 billion yuan (inclusive) of its own capital to repurchase the company's shares through centralized bidding transactions to implement employee stock ownership plans or equity incentives.

Meihua Biotech, which is mainly engaged in R&D, production and sales of amino acid series products, announced on September 23 that the company plans to use 0.3 billion to 0.5 billion yuan of its own capital to repurchase the company's shares through centralized bidding transactions. The repurchase price is no more than 12 yuan/share. The repurchased shares will be used to cancel and reduce the registered capital. Sun Xiaohan of Haitong International said in a research report released on September 24 that Meihua Biotech plans to implement a mid-term dividend and distribute a cash dividend of about 0.5 billion yuan (tax included). According to Zhuochuang News's September 23 market update, Meihua Group's latest tax-inclusive cash price for threonine is 1,1800 yuan/ton, mainly for long-term stable customers. This price is higher than the price of threonine of 950 yuan/ton in Hebei on September 23, which is higher than the price of threonine of 1,050 yuan/ton in Shandong on September 23. Analysts believe that this price adjustment will help improve the profitability of Meihua Biotech.

Chihong Zinc/Germanium, which is mainly engaged in the selection, smelting, deep processing, sales and trading of zinc, lead and germanium series products, announced on September 23 that it plans to repurchase shares of 0.145 billion yuan to 0.29 billion yuan to cancel and reduce the company's registered capital. The repurchase price is no more than 5.70 yuan/share (inclusive). Chen Xianlong of Haitong Securities and others said in a research report released on September 3 that Chihong Zinc/Germanium specializes in lead-zinc extraction, smelting, processing and trading. According to the announcement, Chihong Zinc-Germanium plans to increase the amount of lead-zinc metal by no less than 0.35 million tons, higher than the planned extraction amount of 0.33 million tons, and achieve further storage through expedited exploration. In the 20 years since Chihong Zinc/Germanium went public, the cumulative dividend amount was 6.686 billion yuan, with a dividend rate of 70.6%. Among them, the dividend rate exceeded 50% for five consecutive years in 18-22. According to the Chihong Zinc-Germanium dividend plan, the 2024-2026 cash dividend is not less than 30% of the distributable profit achieved in the current year; the cumulative cash dividend is not less than 40% of the average annual distributable profit achieved in the last three years. The Chihong Zinc-Germanium dividend plan is combined with profit forecasts. Analysts believe that the dividend per share of Chihong Zinc-Germanium may increase steadily in 24 years.

In addition to Meihua Biotech and Chihong Zinc and Germanium, according to incomplete statistics from the Financial Association, this week (September 23 to September 27), two listed companies, Valmax and Offshore Protein, announced plans to repurchase the company's shares and use them to reduce the company's registered capital. Vmax, whose main business is R&D, production, sales and technical service of NEV power-range products, announced on September 24 that it plans to repurchase shares between 50 million yuan and 0.1 billion yuan. The shares repurchased are intended to be used for employee stock ownership plans or equity incentives, and to reduce registered capital. Open Source Securities Yin Shenglu and others said in a research report released on September 25 that Vmax is a leading third-party supplier of automotive power supplies. Valmax actively gives back to shareholders through dividends, repurchases, etc., and implements the company's 2024 “Improve Quality, Efficiency, and Heavy Return” action plan. Analysts expect Vmax's net profit to be 0.608, 0.742, and 0.908 billion yuan respectively in 2024-2026.

Offshore Proteins, whose main business is R&D, production and sales of target and factor proteins, recombinant antibodies, enzymes and reagents, announced on September 27 that it plans to buy back shares for 10 million yuan to 20 million yuan to cancel and reduce registered capital. According to the semi-annual report released by Offshore Protein on August 29, the net loss attributable to the owners of the parent company in the first half of the year was 8.9058 million yuan, and the net profit for the same period last year was 12.3603 million yuan, which changed from profit to loss. The offshore protein semi-annual report revealed that during the reporting period, the company gave full play to the collaborative advantages of multiple technology platforms, actively responded to changes in the market industry, integrated technology, products and services, and thoroughly addressed customer needs in multiple aspects throughout the process. In the target and factor protein product line, we continue to enrich many transmembrane target protein products, enhance products related to cell or tissue culture such as stem cells/immune cells/organoids, and add antigen products related to multiple series of diseases. In the enzyme and reagent product line, we continue to enrich raw materials for molecular diagnosis, and develop products in application fields such as early tumor screening, genetic disease diagnosis, pathogen TNGs, animal disease diagnosis, and POCT to meet the diverse needs of customers.