Key Takeaways:
- Weichai Power repurchased 50.25 million A shares for RMB 761 million.
- The buyback represents 0.58% of the company's total share capital.
- Shares rose over 6.7% following the repurchase announcement.
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Weichai Power Buys Back 50.25M Shares for RMB 761 Million
Weichai Power repurchased 50.25 million A shares for approximately RMB 761 million as of March 31, boosting investor confidence.
The share buyback, conducted via centralized bidding, was announced after the company disclosed its annual results showing a slight profit decline.
The repurchased shares account for 0.58% of Weichai's total share capital. The buyback price ranged from RMB 14.57 to RMB 15.43 per share, with the total consideration amounting to RMB 761 million.
Weichai Power's stock (02338.HK) jumped 6.74 percent on the news. The repurchase is seen as a move to support the stock price after annual profits fell 4.1 percent to RMB 10.93 billion.
By reducing the number of shares outstanding, the buyback program can increase earnings per share, making the stock more attractive to investors. The move signals that management believes the company's shares are undervalued, a common strategy to restore market confidence, especially following a dip in profitability. The company also announced a dividend of RMB 3.74 per 10 shares.
This article is for informational purposes only and does not constitute investment advice.
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