Baogang spent 5billion yuan to launch the first bl

2022-07-25
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Baogang spent 5billion yuan to launch the "first shot" of blue chip buyback

Baogang spent 5billion yuan to launch the "first shot" of blue chip buyback

China Construction Machinery Information

Guide: Baosteel shares has now responded positively to the statement that the regulatory authorities support and encourage listed companies to repurchase. Baosteel Co., Ltd. disclosed today that in order to safeguard the interests of the majority of shareholders, enhance investor confidence and maintain the company's share price, the company analyzed and compared the ways of giving back to shareholders such as dividends and buybacks. After comprehensive consideration, the company invested

Baosteel has responded positively to the regulatory authorities' support and encouragement of the repurchase of listed companies

Baosteel Co., Ltd. disclosed today that in order to safeguard the interests of the majority of shareholders, enhance investor confidence and maintain the company's share price, the company analyzed and compared the ways of giving back to shareholders such as dividends and buybacks. After comprehensively considering the suggestions of investors and the company's financial situation, it now plans to buy back its "own shares" at a price of no more than 5 yuan per share, with a total buyback amount of no more than 5billion yuan

due to the continuous downturn of the A-share market, the share price of Baosteel has been fluctuating and falling since May. The latest closing price is only 4.07 yuan. In contrast, the upper limit of the repurchase price is as high as 5 yuan/share. The high premium of 22.85% fully reflects the company's "support" for its own shares

according to Baosteel Co., Ltd., under the condition that the total repurchase fund does not exceed 5billion yuan and the repurchase price does not exceed 5 yuan, it is estimated that about 1billion shares will be repurchased this time, accounting for about 5.7% of the total share capital of the company and 22.8% of the public shares

a big background that cannot be ignored is that at the beginning of this month, the head of the relevant department of the CSRC publicly stated that although the total consumption of flame retardants in China is higher than the world average level, there are no policy and legal obstacles for "broken" listed companies to repurchase their shares, and the regulatory authorities support and encourage qualified Potential listed companies buy back their shares because this approach can create a win-win situation and boost investor confidence

according to the data, as of July 31 this year, 71 companies in the two cities had "broken the net", including large cap blue chips such as Bank of communications, Shanghai Pudong Development Bank, Baosteel, China Communications Construction Corporation and China Railway. Before Baosteel Co., Ltd., Changan Automobile, Lutai and CSG have successively introduced or started repurchase programs this year, but the repurchase targets are mainly concentrated in B shares

analysts pointed out that as a leader in the domestic steel industry, Baosteel's use of huge funds to repurchase a shares is of exemplary significance. Whether other large blue chips will "follow up" in the future is worth investors' attention

according to Baosteel Co., Ltd., the board of directors of Baosteel Co., Ltd. has recently considered and adopted the proposal on Baosteel Co., Ltd. building Zhanjiang iron and steel base project. The proposal that will be submitted to the general meeting of shareholders for deliberation on this day indicates that once the Zhanjiang iron and steel base project to be carried out by Baosteel Co., Ltd. is successfully constructed, it will form a "time when users of dual manufacturing bases purchase and use aluminum alloy cables" in both East and South China. "Two wheel drive" is conducive to further consolidating and strengthening Baosteel's leading position in the field of high-quality carbon steel flat products and enhancing the company's long-term competitiveness

it is understood that the Zhanjiang iron and steel base project, which has been operated by Baosteel Group and local departments in Guangdong in the early stage, has a high starting point, focusing on the combination of resources and market. The iron and steel project is located on the East Island, which is an ideal place for building an iron and steel base. Zhanjiang is located at the junction of Guangdong, Guangxi and Hainan and at the forefront of the Pearl River Delta and Pan Pearl River Delta. It is a bridge and link between Guangdong Province and regional economic circles such as ASEAN, the great southwest, Beibu Gulf and Hainan Special Economic Zone. It is close to the steel consumption market. The geographical location and deep-water conditions of Zhanjiang port are very conducive to the import of overseas iron ore. As an area with a concentration of steel for automobiles and household appliances, Guangdong's self-sufficiency rate of steel is only about 40%, of which the self-sufficiency rate of plate is 33%, with a gap of 30 to 40 million tons. Therefore, the construction of Zhanjiang iron and steel project will effectively meet the market demand for a variety of steels in this region

Baosteel Co., Ltd. plans to spend 5billion yuan to buy back Baosteel Co., Ltd. announced the interim report last night. Benefiting from the asset sale, the company's net profit in the first half of the year increased by 89.19%

Baosteel Co., Ltd. took the lead in responding to the regulatory authorities' call for listed companies to buy back shares. Last night, the company announced that, in order to safeguard the interests of shareholders, enhance investor confidence, maintain the company's share price, and comprehensively consider the suggestions of investors and the company's financial situation, the company plans to repurchase the company's shares at a price of no more than RMB 5.00 per share, with a total repurchase amount of no more than RMB 5billion. Baosteel Co., Ltd. is also the first listed steel enterprise to state that it will repurchase its shares

the net breaking rate has reached 33.8%

5billion yuan repurchase has supported the stock price

since this year, the continuous downturn of the stock market and the serious depression of the industry have made the steel sector a net breaking "heavy import increased by 61.3% year-on-year". Data show that as of August 27, 78 stocks in the two cities had broken the net, of which 16 were steel stocks. Among them, Anyang Iron and steel is the "king of breaking the net", with a market to net ratio of only 0.516 times. Baosteel also ranked among the top ten in the "net breaking" list. Comparing its closing price of 4.07 yuan on August 27 with the net assets per share of 6.1529 yuan at the end of the first quarter of this year, the price to book ratio was 66.15%, and the net breaking ratio was as high as 33.85%

in fact, in order to support the declining share price, Baosteel Co., Ltd. has increased its shareholding from major shareholders to senior executives. According to the data, since 2011, Baosteel Group has increased its shareholding in Baosteel on September 28, 2011 and January 17, 2012, with a total of 175million shares, accounting for about 1% of the total issued shares of the company; In addition, a total of 9 senior executives successively increased their holdings for 22 times, with a total of 478800 shares and about 2.817 million yuan from their own pockets

however, it seems that at least the increase in shareholding does not significantly support the share price of Baosteel. From the beginning of 2011 to the present, the share price of Baosteel has dropped from about 6.5 yuan to about 4 yuan, a drop of more than 30%. The market will have to wait and see whether the repurchase of up to 5billion yuan can improve the share price of Baosteel

it is reported that Baosteel will hold a shareholders' meeting on September 17 to consider this matter

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