Zheng Quan Shi Bao·2025-07-29 18:28Core Viewpoint - Regulatory bodies have introduced multiple policies to encourage listed companies to repurchase and cancel shares, leading to a significant increase in the importance placed on buybacks by these companies [1] Group 1: Buyback Activity - In July, the total amount of share repurchases by listed companies reached 14.01 billion yuan, a month-on-month increase of 12.06%, marking the fourth consecutive month with monthly buybacks exceeding 10 billion yuan, indicating a clear rise in enthusiasm for buybacks [2] - Year-to-date, the total repurchase amount has reached approximately 88.99 billion yuan, with 27 companies repurchasing over 1 billion yuan in July, including Midea Group, TCL Technology, Guotai Junan, and Baosteel, each exceeding 500 million yuan [2] - Midea Group has announced two repurchase plans totaling up to 13 billion yuan, with 9.73 billion yuan and 1.51 billion yuan repurchased to date [2] Group 2: Sector Analysis - The most active sectors in share repurchases since July include home appliances, basic chemicals, electronics, and pharmaceuticals, each with repurchase amounts exceeding 1 billion yuan [2] - Despite a weaker performance in the home appliance sector, which saw a 2.33% increase in its index, companies in this sector are demonstrating confidence in long-term development through buybacks [2] Group 3: Financing Support - The People's Bank of China and other regulatory bodies have introduced a policy to establish special loans for stock repurchases, significantly reducing financing costs for companies and encouraging them to manage their market value [3] - Year-to-date, companies have accessed a maximum of 91.92 billion yuan in special loans for repurchases, with 59.51 billion yuan specifically allocated for share buybacks, accounting for 64.74% of the total [3] - Among the 323 companies that obtained these loans, private enterprises represent the majority, with 238 companies, reflecting strong policy support for the private sector [3] Group 4: Valuation Insights - A total of 553 listed companies have announced share repurchase plans this year, with 30 companies planning to repurchase amounts of 1 billion yuan or more, including Midea Group, CATL, and Kweichow Moutai with maximum repurchase amounts of 13 billion yuan, 8 billion yuan, and 6 billion yuan respectively [4] - The share repurchase plans are often initiated when companies believe their market value is undervalued, which can positively impact stock prices and support future valuation recovery [4] - Among the companies that have announced repurchase plans, 32 have a current price-to-earnings ratio below the 30th percentile for the year, indicating they are relatively undervalued [4] Group 5: Performance Outlook - Seven undervalued companies have released performance forecasts, with five expecting year-on-year growth in net profit, suggesting further potential for valuation reduction [5] - Baofeng Energy has announced a repurchase plan with a range of 1 billion to 2 billion yuan, expecting a net profit of 5.4 billion to 5.9 billion yuan for the first half of the year, representing a year-on-year increase of 63.39% to 78.52% due to increased production and sales of its olefin products [5]