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In recent years, thanks to the positive guidance of regulatory policies, China's capital market has gradually matured. Especially after the promulgation and implementation of the new "Nine Articles" policy, the pace of high-quality development of the capital market has significantly accelerated. The new "Nine Articles" policy particularly highlights the key role of the shareholder return mechanism and strongly advocates that listed companies adopt measures such as cash dividends and share repurchases to enhance returns for investors. Against this backdrop, HealthGen (600380.SH) has actively implemented various methods such as cash dividends and share repurchases to share the fruitful results of the company's development with its shareholders. Its series of high-frequency measures in the field of shareholder returns in recent years are particularly noteworthy.

Simultaneously Implementing Stock Repurchases and Cash Dividends

Public information shows that HealthGen mainly engages in the research, development, production, and sales of pharmaceutical products and health products. In recent years, the company has steadily advanced its "innovative drugs + high-barrier complex preparations" dual-drive strategy, achieving significant results. For example, in the field of high-barrier complex preparations, the company's salmeterol/fluticasone propionate inhalation powder is the first domestically produced generic drug. This product has a good market competitive landscape and broad growth prospects. In terms of innovative drugs, the company's new anti-influenza drug TG-1000 has a long effective treatment period and has been submitted for production in August 2024. After its future listing, it is expected to quickly increase in volume, injecting strong momentum into performance growth.

While continuously promoting its own vigorous development, HealthGen pays particular attention to optimizing the shareholder return mechanism. For many years, the company has been a leader in repurchasing shares, with its total repurchase amount repeatedly reaching and reaching the preset upper limit, achieving full execution of the repurchase plan. According to statistics, the actual repurchase amount completed by HealthGen has accumulated to tens of billions of yuan, and almost all of these repurchased shares have been cancelled. Some market analysts pointed out that HealthGen's strategy of implementing share repurchases and subsequent cancellations for consecutive years not only has a positive impact on improving core financial indicators such as earnings per share and return on net assets per share, but also helps optimize the capital structure, enhance shareholder value, and convey confidence in the company's future development and recognition of the stock price to the market, thereby enhancing investor confidence.

As is well known, cash dividends are an important part of shareholder returns. Listed companies return profits to shareholders in cash through cash dividends, which is a powerful embodiment of protecting investor rights and strengthening shareholder returns. Continuous and stable cash dividends are not only a signal of the stable operation and financial condition of listed companies, but also an important reference for investors to evaluate the company's value. While making large-scale repurchases for a long time, HealthGen also adheres to long-term cash dividends to continuously boost market confidence. According to Wind data, since its listing in 2001, HealthGen has distributed cash dividends to all shareholders a total of 20 times, with a cumulative dividend amount exceeding 3.6 billion yuan, and a dividend payout ratio of 106%.

Therefore, HealthGen has consistently used cash dividends and share repurchases for many years "real money" to reward investors, while continuously improving investor returns, it also highlights its determination to actively implement the "improving quality and efficiency, focusing on returns" strategy, and has injected a strong stimulant into the market.

Launch of the Fifth Large-Scale Share Repurchase Plan with Cancellation

It is reported that HealthGen recently launched its fifth large-scale repurchase. In early September, amid market fluctuations, HealthGen announced the launch of a new round of repurchases to boost shareholder confidence. According to the company's "Repurchase Report" issued on September 26, based on its confidence in its future development and recognition of the company's value, and in order to effectively protect the interests of all shareholders, enhance investor confidence in the company, promote the reasonable return of the company's stock value, and implement the company's "improving quality and efficiency, focusing on returns" action plan, the company plans to implement a stock repurchase of 300 million to 500 million yuan, with a repurchase price not exceeding 15.40 yuan/share (inclusive), and the repurchase will be used to reduce registered capital.

In terms of the current repurchase progress, according to the company According to the announcement released on the evening of October 10, HealthGen repurchased a total of 377,715 shares through the centralized bidding trading method on that day, with a total payment of 4.2842 million yuan (including handling fees). Based on the closing price on October 16, the upper limit of HealthGen's repurchase price of 15.40 yuan is still more than 40% higher than the current price, further confirming the company's view that its own stock price is seriously undervalued.

Moreover, HealthGen continues to return to shareholders with a stable dividend policy. In July this year, the company distributed a cash dividend of 1.8 yuan per 10 shares for 2023, with a dividend amount of 340 million yuan. In addition, because HealthGen simultaneously carried out stock repurchases and cancellations while distributing cash dividends, combining the funds repurchased in 2023, the company's profit distribution amounted to 811 million yuan, accounting for 56.22% of the company's net profit attributable to the parent company for the current period.

Currently, under the impetus of the new "Nine Articles," HealthGen's relaunch of a new repurchase plan is not only a positive response to the policy, but also demonstrates the company's positive measures to adhere to long-termism and silently protect the interests of shareholders. While conveying confidence to the market, it also creates more value for shareholders, and the value attributes of the company itself are becoming increasingly brilliant.

This article is reproduced from: Securities Market Weekly