According to the Futu Securities APP, since October, China's largest fruit retail operator, Pagoda GP (02411), has frequently used gold and silver to repurchase shares. According to Pagoda GP's announcement, on November 12, 2024, the company spent 0.4259 million Hong Kong dollars to repurchase 0.28 million shares. It is worth noting that since October, Pagoda GP has successively repurchased company shares in the market sixteen times, with a cumulative repurchase of 15.28 million shares so far.

On January 11 this year, Pagoda GP announced an H-share repurchase plan, planning to use up to RMB 0.634 billion to repurchase no more than 0.118 billion H-shares, equivalent to 10% of the total number of H-shares issued at the time of the shareholders' meeting.

For the market and investors, share buybacks convey Pagoda GP's confidence in future development prospects, helping to boost investor confidence. Through share buybacks, the company can also optimize its capital structure, reduce financial costs, and improve the company's financial health. In addition, share repurchases reduce supply in the market, which usually leads to an increase in stock prices, benefiting investors.

In the second half of this year, Pagoda GP launched the 'High-Quality Cost-Effective Word-of-Mouth Campaign', introducing high-quality and cost-effective 'Repay Fruits' every month, allowing more consumers to enjoy the wonderful experience brought by high-quality fruits. The first phase 'A-grade - Zespri SunGold Kiwifruit (large fruit)', the second phase 'A-grade Autumn Pearl Pear (large fruit)', and the third phase 'Signature Green Fruits of the Pagoda' quickly became the 'hot-selling items' of the period, receiving positive feedback from the market.

Specifically, on November 6, Pagoda GP successfully concluded the third phase of the 'Good Fruit Repayment - Signature Green Fruits of the Pagoda' event. It is understood that during the activity period from October 17 to November 6, large fruits priced at 3.9 yuan/each and some medium fruits priced at 2.9 yuan/each in some stores won the favor of consumers with high cost-effectiveness and high-quality taste, with a total sales volume exceeding 5.63 million, a year-on-year increase of 69.2% compared to the same period last year. At the same time, the 'National Trend Good Fruit Health Season' themed flash activity paired with it has been well received by many young people.

The 'National Trend Good Fruit Health Season' event showcases the deep integration of domestic fruits and intangible cultural heritage to consumers. This year, Pagoda GP specially invited Zhang Duotang, curator of the 'Traditional Chinese Paper Cutting Art Museum', an inheritor of intangible cultural heritage, to create a co-branded packaging for the 'Signature Green Fruits of the Pagoda', allowing consumers to personally experience the extraordinary intangible heritage craftsmanship and the deliciousness of domestic kiwifruit, significantly enhancing the popularity and recognition of the Signature Green Fruits of the Pagoda.

Industry insiders analyze that the successful promotion of 'Mizong Green Fruit' not only benefits from its breakthroughs in marketing innovation and cultural integration, but also relies on Pagoda GP's unremitting efforts in deepening its cultivation in the fruit industry. Since 2009, Pagoda GP has been rooted in the soil of 'Shaanxi Zhouzhi,' one of the original habitats of kiwi fruit. By transforming the orchard's ecological environment and continuously improving planting technology, the flagship 'Mizong Green Fruit' was officially launched in 2017, symbolizing the 'ancestor of kiwifruit.' The golden sweet and sour ratio of 'eight sweet, two sour' is more suitable for the Chinese palate, earning the title of 'national treasure' in the fruit industry.

First Shanghai Securities pointed out that considering the solid leading position of Pagoda GP's fruit chain retail, as well as the significant advantages of integrated industry chain and brand, with the gradual deepening of the company's global strategy adjustment, coupled with the steady progress of direct sales business and overseas C-end business, the company's profit level is expected to continue to rise.