China Heavy Industries has intensified its restructuring efforts after three rounds of increase in holdings and then throw back the repurchase plan

category:Finance
 China Heavy Industries has intensified its restructuring efforts after three rounds of increase in holdings and then throw back the repurchase plan


Buy-back increases confidence

According to the announcement, as of December 31, 2018, the total assets audited by China Heavy Industries were 186.2 billion yuan, and the net assets attributed to shareholders of listed companies were 84.4 billion yuan. Assuming that the maximum repurchase capital limit of 600 million yuan has been used up, according to the financial data of December 31, 2018, the repurchase capital accounts for about 0.32% of the total assets of the company and 0.71% of the net assets of shareholders of listed companies.

Regarding the purpose and use of repurchase, China Heavy Industries said that based on confidence in the companys future development and recognition of the companys value, it focused on the companys long-term and sustainable development, and based on the companys value growth.

A reporter from Securities Daily called the Ministry of Heavy Industry and Securities as an investor. Staff members said that in recent years, the market of the whole ship market is not very good, but the company is still optimistic about the development of the next few years. At the same time, some repurchase measures have been introduced because of the consideration that the companys value is undervalued. At present, the companys repurchase funds still exist, will not bring operational pressure.

In fact, in addition to repurchasing shares, the controlling shareholders of China Heavy Industries also release confidence to the market by increasing their holdings. From August 8, 2018, China Shipbuilding Heavy Industries Group Co., Ltd., the controlling shareholder of China Heavy Industries, has been carrying out three rounds of increasing shareholding plan. It has accumulated 325 million shares of China Heavy Industries, accounting for 14238% of the companys total equity, with an average increase of 438 yuan per share and a total increase of 1.348 billion yuan. Among them, the third round of shareholding increase was implemented from Dec. 10, 2018 to Jan. 3, 2019, totaling 92.81 million shares, accounting for 0.4056% of the companys total equity, with a cumulative increase of 390 million yuan.