- 2024,11,05
On October 9th, Cheng Yi Pharmaceutical (603811) announced that the company plans to use its own funds of no less than RMB 50 million (inclusive) and no more than RMB 100 million (inclusive) to repurchase company shares, intended for equity incentives or employee stock ownership plans. The repurchase period is within 12 months from the date of approval of the share repurchase plan by the board of directors.
The stock price has risen, and the determination to maintain confidence remains unchanged. On October 8th, the company repurchased 2.403 million shares of the company for the first time through centralized bidding trading, accounting for 0.73% of the company's current total share capital. The highest repurchase price was 8.36 yuan/share and the lowest price was 8.03 yuan/share, with a total payment of approximately 19.7862 million yuan (excluding transaction fees).
Market analysts believe that daring to allocate large amounts of funds for the acquisition of company shares to some extent demonstrates the management's confidence in the company's value and optimism about its prospects. At the same time, the repurchased shares will be used to improve the company's incentive mechanism, which will be conducive to fully mobilizing the enthusiasm of company employees, enhancing their cohesion, promoting the long-term stable development of the company, effectively linking the interests of shareholders, the company, and employees, and enabling all parties to work together to promote the long-term, stable, and sustainable development of the company.
It is reported that Cheng Yi Pharmaceutical is a high-tech enterprise specializing in the field of medicine and health. The company relies on Dongtou as a demonstration zone for the development of marine economy and vigorously develops marine biopharmaceuticals. At present, the company can produce more than 70 types of drugs and health foods. During the 14th Five Year Plan period, it will focus on planning the "two strong and one large" projects of Asia's largest annual production of 2000 tons of glucosamine raw materials and 1000 tons of super fish oil industry, accelerating the transformation and upgrading from "generic drugs" to "innovative drugs".
The company's core product, joint drugs, has achieved steady revenue growth in recent years, with sales exceeding 400 million yuan in 2023. With the intensification of the aging trend in society, it is expected that the market demand for joint drugs will further expand in the future, providing a solid market foundation for the company's long-term development. In addition, a 1000 ton high-purity EPA production line is steadily under construction, with 97% purity EPA being the first FDA approved lipid-lowering EPA drug with high technical barriers. Cheng Yi Pharmaceutical, with its first mover advantage in this field, has become one of the earliest active pharmaceutical ingredient companies to undergo domestic and international certification. With the implementation of production capacity, Sincere Pharmaceutical is expected to open up new business growth points with high-purity EPA.
Zhongtai Securities pointed out in its research report that the pharmaceutical sector, as one of the sectors with the largest decline in the past three years, is experiencing a major rebound, and the pharmaceutical sector has strong aggressiveness. The adjustment of sufficient recovery logic and the growth logic driven by technological innovation are expected to attract strong capital inflows. Analysis suggests that the pharmaceutical sector is expected to become one of the strongest sectors in the market rebound. （CIS）
Reprinted from: Company E