Public companies' buyback programs continue to heat up, with leading firms increasing their efforts signaling a positive outlook

Securities Daily reporter Wang Jingru

Recently, share buybacks in the A-share and Hong Kong-share markets have continued to heat up. Many listed companies have densely disclosed their buyback progress or rolled out large buyback plans, sending positive signals of stabilizing market expectations and strengthening investors’ confidence.

On April 2, a notice from Orbbec Precision Technology Group Co., Ltd. (hereinafter referred to as “Orbbec Precision”) showed that as of March 31, the company had cumulatively repurchased 0.5660 million shares, accounting for 0.14% of the total share capital. It had cumulatively paid RMB 45.2854 million, and the repurchase price range was RMB 74.82 per share to RMB 86.50 per share. Among them, it repurchased 0.2270 million shares in March alone and paid RMB 17.2688 million.

A relevant executive at Orbbec Precision said, “Continuously conducting share buybacks demonstrates the company’s pragmatic actions to stabilize market expectations and safeguard shareholders’ value.”

On the same day, Shenzhen Pet Food (Group) Co., Ltd. announced that it plans to repurchase A-share shares through centralized bidding. The repurchase amount will be no less than RMB 1.0 billion (including this amount) and no more than RMB 2.0 billion (excluding this amount). The funds for this buyback will come from the company’s own funds, and the repurchase price will not exceed RMB 248 per share. Of the repurchased shares, no less than 90% will be used to cancel and reduce registered capital, and the remaining portion is intended for an employee stock ownership plan and/or equity incentives.

Earlier, Midea Group Co., Ltd. (hereinafter referred to as “Midea Group”) unveiled a maximum RMB 13.0 billion share buyback plan. The announcement shows that the company plans to repurchase A-share shares via centralized bidding. The repurchase amount will be no less than RMB 6.5 billion and no more than RMB 13.0 billion, and the repurchase price will not exceed RMB 100 per share. The buyback funds will come from the company’s own funds as well as special loans provided by the Bank of China Shunde Branch (the loan amount will not exceed 90% of the repurchase amount).

SF Holding Co., Ltd. (hereinafter referred to as “SF Holding”) has also increased the intensity of its buybacks. The company announced that it will adjust the total repurchase funds of its 2025—first tranche of A-share buyback scheme from “no less than RMB 1.5 billion and no more than RMB 3.0 billion” to “no less than RMB 3.0 billion and no more than RMB 6.0 billion,” and extend the implementation period to 12 months from the date the board approves the change to the buyback scheme. The intended use of the repurchased shares will change from “to be used for an employee stock ownership plan or equity incentives” to “to be used to cancel and reduce registered capital.”

A relevant executive at SF Holding said, “By proactively increasing the intensity of share buybacks, the company demonstrates its firm confidence in future development. In the future, it will continue to create greater value for investors through measures such as improving operating efficiency and enhancing market value management.”

In the Hong Kong-share market, buybacks are also active. Wind data shows that as many as 37 listed companies conducted share buybacks as of March 30 alone, with a total of 73.3513 million shares repurchased and a buyback amount of HKD 1.495 billion. Industry participants believe that share buybacks have gradually shifted from a phased market value management tool to an important means of serving companies’ long-term strategies.

Zhang Xiaorong, president of the Shenzhen Academy of Technology Research, said in an interview with Securities Daily reporter: “Leading companies have stronger cash flow and financing capabilities, and their buyback actions often carry a demonstrative effect. On the one hand, large-scale buybacks can convey to the market the company’s recognition of its own long-term value. On the other hand, by increasing the proportion used for cancel and reducing the number of tradable shares, it can also help optimize the capital structure and improve earnings per share. In the current market environment, leading companies stepping up buybacks, to some extent, have played a role in stabilizing market expectations and guiding the allocation of medium- to long-term capital.”

Zhu Keli, founder and president of the Guoyan New Economy Research Institute, said in an interview with Securities Daily reporter: “When companies implement buybacks, they should clarify the purpose and strategy. Repurchasing shares is not only to boost the stock price or reward shareholders, but should also serve the company’s long-term development. At the same time, they should strengthen communication with investors and improve internal management and risk controls to ensure buyback conduct is compliant and steady, thereby better achieving value enhancement for the company.”