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In 2022, a number of listed companies will continue to increase the repurchase of shares, and the decline in market value will further trigger a wave of
corporate buybacks.
corporate buybacks.
According to flush data, since the beginning of this year, nearly 200 listed companies in the Hong Kong stock market alone have implemented share buybacks
.
As of October 17, Hong Kong stock companies have repurchased HK$73 billion in 2022, which is close to twice the total amount of repurchases in 2021 and a record high
.
.
As of October 17, Hong Kong stock companies have repurchased HK$73 billion in 2022, which is close to twice the total amount of repurchases in 2021 and a record high
.
In fact, listed companies in the pharmaceutical sector are undoubtedly "regulars"
of the buyback list.
of the buyback list.
Recently, a number of listed pharmaceutical companies in both the Hong Kong stock market and the A-share market have repurchased their own shares heavily, and driven by many listed companies such as WuXi Biologics, JD Health, Hengrui Pharmaceutical, and AdBiologics, the recovery of the pharmaceutical sector may promote the capital market to become active
.
In addition, there are many companies such as Zhaoyan New Drug, Health Yuan, etc.
, although they have not yet implemented the repurchase operation, they have also issued repurchase plan announcements
.
.
In addition, there are many companies such as Zhaoyan New Drug, Health Yuan, etc.
, although they have not yet implemented the repurchase operation, they have also issued repurchase plan announcements
.
Affected by multiple factors, the overall performance of the biomedical sector is obviously not satisfactory
to investors.
Is this round of buyback boom a financial decision by companies to take the initiative to maintain the market value of stock prices, or is it a Jedi counterattack after market confidence has fallen to the bottom?
to investors.
Is this round of buyback boom a financial decision by companies to take the initiative to maintain the market value of stock prices, or is it a Jedi counterattack after market confidence has fallen to the bottom?
01.
Large "shots" of funds
Large "shots" of funds
Pharmaceutical companies continue to buy back shares
Since the beginning of 2022, China's top pharmaceutical listed companies have accelerated the pace of repurchase, and earlier industry analysts pointed out that in the first quarter of 2022 alone, more than 30 pharmaceutical companies announced stock repurchase plans and repurchase progress
.
.
It is worth noting that Hengrui Pharmaceutical mentioned in the repurchase plan that it intends to use 6-1.
2 billion yuan to repurchase shares for employee stock ownership plans or equity incentives; In the first quarter of this year, Mindray Medical, which took only half a month to become a 1 billion repurchase plan
released at the beginning of the year.
2 billion yuan to repurchase shares for employee stock ownership plans or equity incentives; In the first quarter of this year, Mindray Medical, which took only half a month to become a 1 billion repurchase plan
released at the beginning of the year.
According to incomplete statistics from the New Media Center of "Medical Economic News", in the past month, WuXi Biologics has been active in repurchases, with a total of nearly 1 billion Hong Kong dollars invested in eight repurchase executions and more than 20 million shares repurchased (data as of the close of the market on October 14).
JD Health has also made several moves to stabilize its market value in the past month, spending more than 230 million Hong Kong dollars to buy back about 5.
2 million shares
.
2 million shares
.
Tongce Medical repurchased about 740,000 shares
in September with nearly 90 million yuan.
in September with nearly 90 million yuan.
In fact, throughout 2022, pharmaceutical companies have issued repurchase plan announcements that far exceed the above statistics
.
.
WuXi Biologics' plan mentions that it will repurchase up to 425,926,547 shares at a price not exceeding US$300 million, representing approximately 10%
of WuXi Biologics' issued shares.
At present, the enterprise with the highest planned amount in the major statistical pharmaceutical sector is converted into about 2.
1 billion yuan (the exchange rate is calculated according to 1:7.
21 on October 17).
of WuXi Biologics' issued shares.
At present, the enterprise with the highest planned amount in the major statistical pharmaceutical sector is converted into about 2.
1 billion yuan (the exchange rate is calculated according to 1:7.
21 on October 17).
According to incomplete statistics from the New Media Center of "Pharmaceutical Economic News", dozens of medical sector companies have announced repurchase plans in 2022 (some companies announced the date of the second half of 2021, but the implementation period is 2022 or covering 2022), and about 8 companies intend to invest more than 100 million yuan to prepare to repurchase their own shares
in 2022.
in 2022.
In addition to the above three enterprises, two enterprises, such as Changchun High-tech and Healthyuan, plan to invest 600 million yuan to repurchase shares, most of which are planned to act as internal equity incentives
.
.
The industry view believes that from the perspective of market capital, this seems to reveal that companies are dissatisfied with the low valuation of their own stock prices, which also indicates that some companies have good revenue benefits and low financial pressure; Share repurchase is a means for enterprises to effectively allocate funds, and enterprises will use equity to buy back shares as a means of storage or employee incentives when they have excess funds on hand
.
.
"When the stock price rises, the company lacks funds, or the incentive option is withdrawn, the relevant shares are sold, so as to achieve the purpose of
effectively financing funds and scheduling financial revenue and expenditure.
" In general, this all represents good news
such as the company's confidence in self-growth and the belief that its own stock price is close to the trough rebound window.
”
effectively financing funds and scheduling financial revenue and expenditure.
" In general, this all represents good news
such as the company's confidence in self-growth and the belief that its own stock price is close to the trough rebound window.
”
Some enterprises plan to carry out share cancellation
after share repurchase.
Some insiders interpret that listed companies use their own capital to buy back their shares listed on the market, and then cancel them; After the cancellation of the relevant shares, it has a significant effect on the company's earnings per share or financial figures, which is beneficial to
stabilizing the market value of the listed company.
In the long run, in the end, it is necessary to improve the fundamentals of the company and the industry in which it is located to play a role
in raising the stock price.
after share repurchase.
Some insiders interpret that listed companies use their own capital to buy back their shares listed on the market, and then cancel them; After the cancellation of the relevant shares, it has a significant effect on the company's earnings per share or financial figures, which is beneficial to
stabilizing the market value of the listed company.
In the long run, in the end, it is necessary to improve the fundamentals of the company and the industry in which it is located to play a role
in raising the stock price.
02.
Release positive signals
Release positive signals
Biomedicine bottoming out?
In fact, the theme of pharmaceutical innovation is pre-cooled, many biopharmaceutical companies have broken through listings, their market value has been undervalued, their capital market investment enthusiasm is close to the trough, and their confidence in long-term growth is weak.
Recently, a number of brokers, fund companies and investment companies have issued buy ratings and doubled target "value"
to some companies.
Recently, a number of brokers, fund companies and investment companies have issued buy ratings and doubled target "value"
to some companies.
On September 30, Orient Securities gave Hengrui a buy rating
.
From October 13 to 14, Hengrui's share price attracted a sharp increase, and the net purchase of financing on the 14th reached 309 million yuan, ranking first
in the A-share market.
.
From October 13 to 14, Hengrui's share price attracted a sharp increase, and the net purchase of financing on the 14th reached 309 million yuan, ranking first
in the A-share market.
On October 10, after WuXi Biologics was removed from the US "UVL" list, Nomura released a research report maintaining WuXi Biologics' buy rating, giving a price target of HK$97.
79 that almost doubled from WuXi Biologics' price of about HK$
47 per share.
Subsequently, the stock market funds "went south" in a big way that week, and Hong Kong stock funds bought 14.
708 billion Hong Kong dollars, of which WuXi Biologics bought 1.
333 billion Hong Kong dollars
.
79 that almost doubled from WuXi Biologics' price of about HK$
47 per share.
Subsequently, the stock market funds "went south" in a big way that week, and Hong Kong stock funds bought 14.
708 billion Hong Kong dollars, of which WuXi Biologics bought 1.
333 billion Hong Kong dollars
.
On October 12, Oriental Wealth News released that Guojin Securities, Cinda Securities, Zhongtai Securities, Essence Securities and other securities companies believe that Mindray's Q3 performance has grown steadily, coupled with the subsidized loan policy in the general environment to enhance performance potential and other factors
.
Mindray gave a buy rating and then rose
sharply.
The closing price on October 14 rose by more than 10%.
.
Mindray gave a buy rating and then rose
sharply.
The closing price on October 14 rose by more than 10%.
On October 14, MicroPort's first domestic ECMO product "Integrated Membrane Oxygenator" was approved for listing, and a number of capital companies maintained the buy rating
of MicroPort.
In addition, CITIC Securities Research Report pointed out that the medical device sector will gradually usher in a revaluation
due to factors such as favorable policies for collecting favorable policies, subsidized loans, and low allocation in the pharmaceutical sector.
of MicroPort.
In addition, CITIC Securities Research Report pointed out that the medical device sector will gradually usher in a revaluation
due to factors such as favorable policies for collecting favorable policies, subsidized loans, and low allocation in the pharmaceutical sector.
Under the influence of various positive news, the medical sector rose sharply across the board from October 13 to 14, and some companies experienced a violent rise
.
Although some stock prices have corrected after the opening of the market on the 17th of this week, there are industry views that in the context of increased volatility in the global market, the A-share market has been adjusted to a fairly low position, and the overall valuation has a certain cost performance
.
The capital market is generally optimistic about the long-term prospects
of the current capital market.
Long-term investment under the current low valuation is likely to achieve a relatively good positive return
.
.
Although some stock prices have corrected after the opening of the market on the 17th of this week, there are industry views that in the context of increased volatility in the global market, the A-share market has been adjusted to a fairly low position, and the overall valuation has a certain cost performance
.
The capital market is generally optimistic about the long-term prospects
of the current capital market.
Long-term investment under the current low valuation is likely to achieve a relatively good positive return
.
The superposition of various factors seems to indicate that the "cold winter" of the pharmaceutical sector will pass, and the "dawn" and "spring" are coming
.
Industry experts said that from the overall suspension of the stock market correction, the market reaction is more cautious, although some securities companies or capital institutions have given corporate buy ratings and reasonable target stock prices, but have not yet found institutional positions or block trading plans
.
.
Industry experts said that from the overall suspension of the stock market correction, the market reaction is more cautious, although some securities companies or capital institutions have given corporate buy ratings and reasonable target stock prices, but have not yet found institutional positions or block trading plans
.
In terms of market, the pharmaceutical sector has gradually "bottomed out"
in multiple dimensions.
Industrial Securities believes that since the second half of 2021, the pharmaceutical industry has experienced continuous and substantial adjustments, reaching the lowest position in the past ten years, and the current policy bottom, valuation bottom and position bottom characteristics are significant
.
in multiple dimensions.
Industrial Securities believes that since the second half of 2021, the pharmaceutical industry has experienced continuous and substantial adjustments, reaching the lowest position in the past ten years, and the current policy bottom, valuation bottom and position bottom characteristics are significant
.
However, the stock prices of some pharmaceutical listed companies with the recovery of performance, does it mean that the entire sector will usher in a "Jedi counterattack"? The market view believes that the main attention of the market is still concentrated in the leading companies in the industry segment, and the market's optimism about the medical sector in the short term is still insufficient; In the long run, with the continuous promotion of domestic policies and the continuous development of the big health industry, if enterprises can seize the opportunity to base on innovative and high-quality development, the future will usher in a new "spring"
.
.
