On October 9, about 10 companies listed on the Shanghai Stock Exchange (SSE) submitted the "Corporate Value and Return Enhancement" Action Plan. Up to now, the number of the SSE companies that have launched an Action Plan has reached 1,085, accounting for 47% of the SSE companies, including 738 private enterprises and 347 central and state-owned enterprises, covering a market value of about RMB 32.69 trillion. The coverage rate of the SSE 180 Index companies is nearly 80%.
According to the disclosed Action Plan, the SSE listed companies have elaborated their development goals and key initiatives based on analyzing the current business situation, including improving business quality, increasing investor returns, and strengthening investor communication. Among them, some companies have specified the minimum dividend percentage for the next three years, while some have proposed to implement multiple dividends a year, pre-dividends, and other measures.
Under the impetus of the special action, listed companies have gradually consolidated the investor-oriented development concept, and have changed from focusing on the scale of business and growth rate to focusing on improving the quality of operation and investor returns. Hebei Huatong Wires and Cables Group Co., Ltd. clarified in its Action Plan that the Company's current main business involves the two industries of wire and cable and oil services, and that it has been deeply engaged in these two fields for many years with strong market competitiveness. The Company practices the globalization strategy layout of "giving equal importance to both domestic and foreign markets, and expanding its presence in both developed countries and emerging markets". On the basis of continuously expanding domestic market share, it has been exploring overseas markets since 2005. It has successively built production bases in Tanzania, Cameroon, South Korea, Panama and other places to expand its sales scope and market share. In the future, the Company will continue to focus on its core business, expand and extend the industrial chain, improve the global market layout, promote technological innovation and industrial upgrading, and enhance product quality and competitiveness.
Under the frequent tailwinds of the M&A and restructuring policy, Wuchan Zhongda Group Co., Ltd. indicated in the Action Plan that, under the premise of conforming to the strategic orientation, the Company will highlight the new advantages of the industry through investment and mergers and acquisitions, setting up a new industrial pattern that is scientific, reasonable, counter-cyclical, steadily growing and sustainable.
Market value is a visual reflection of a listed company's stock price and reflects the market's expectations of the company's growth potential and profitability. The SSE companies have actively conveyed the concept of market value management in the "Corporate Value and Return Enhancement" Action Plan to enhance the value of investment and strengthen their competitive advantages. Inner Mongolia North Hauler Joint Stock Co., Ltd. stated that it will convey its investment value to the market in a variety of ways to promote the growth of intrinsic value and market value; Zhejiang Chint Electrics Co., Ltd. announced that it will continue to improve the multi-dimensional, multi-level and multi-form management of investor relations, and establish a sound and benign communication mechanism with investors; Shanghai Yanpu Metal Products Co., Ltd. indicated that it will continue to strengthen the management of investor relations, set up a scientific view of the market value, strengthen the interaction and communication with investors, and continuously enhance the investors' recognition of its strategy and long-term investment value.
Overall, since the launch of the Action Plan, the SSE companies have significantly improved their operating ability, governance level, return ability and investment value. In 2024, the SSE companies ushered in a blowout period in terms of medium-term dividends. There were 337 companies that paid dividends, up 343% year on year, with a total dividend amount of nearly RMB 500 billion, up 156% year on year. Since 2024, more than 600 new repurchase plans have been added by the SSE companies, with an upper limit of the proposed repurchase amount exceeding RMB 90 billion. More than 370 additional holding plans for entities such as major shareholders, directors, supervisors and senior management members have been added, with an upper limit of about RMB 33 billion.
The above information is provided for reference purposes only and does not constitute investment advice.
