The "olong" event will not end because of yesterday's rise, it is precisely the undercurrent that has emerged behind the active period of the index, and even some insiders expect that large funds to suppress the remnants of Everbright Securities has become a new main line of future market operation.

GEM and small and medium-sized board stocks continued to perform actively yesterday, occupying the majority of the position in the daily limit list. Among them, He Xin shares (002343) to buy back 20% of the shares of 300 million yuan, shortly after the opening yesterday, the stock price was sealed to the daily limit, until the close of the day, there were 14.21 million yuan net inflows into the stock.

Hexin shares belong to the rubber and plastic products industry, the main PU synthetic leather products research and development, production, sales and service. In recent years, the prosperity of artificial leather and synthetic leather industry is low, and the company's performance growth is not strong. Some analysis said that in the first half of this year, the company's sales revenue of PU leather increased by 24.45%, PU resin paste, synthetic leather base cloth sales revenue fell 9.7% and 15.9% respectively. From the downstream demand point of view, the downstream demand of artificial leather and synthetic leather mainly includes shoe leather, furniture leather and clothing leather, which is the main downstream industry of artificial leather and synthetic leather industry, because the production growth of downstream leather shoes is very slow, so the sales revenue of artificial leather and synthetic leather industry is difficult to be significantly improved. The main driving force of the company's future performance growth is the release of PU synthetic leather and PU resin slurry production capacity. Fujian PU synthetic leather is expected to be completed and put into operation by the end of August, with a production capacity of 6 million meters and a gross profit margin estimated at about 20%.

Due to the progress of PU leather production capacity release is lower than expected, the company's share price has been on a downward trend. In this context, the company issued an announcement on August 19 that it will invest 300 million yuan in cash to buy back more than 20% of the shares, and the highest price of the buyback is determined to be 7.5 yuan per share, and the number of shares repurchased is about 40 million shares, accounting for about 20.19% of the company's total share capital. Upon completion of the repurchase, the total share capital of the company will be reduced from 198 million to 158 million.

The total share capital and circulating share capital of Hexin shares are not large, and the absolute amount of repurchase is not much, but it is definitely a "big deal" in the proportion of repurchase, accounting for 20.19% of the total share capital of the company, which is currently the highest among the listed companies that have repurchased shares this year. The company expects that after the completion of the buyback, the earnings per share will increase by 25.30%, and the return on net assets will increase by 0.46 percentage points. Yesterday, the stock closed at 8.31 yuan, once the after-market share price fell below 7.5 yuan, it will provide a good opportunity for the company to buy back. Therefore, the buyback price set by the company is expected to form a strong support for the stock price.

Although the share price of Hexin shares fell sharply for two consecutive days last week, the data of capital flow of retail investors and institutions showed that in the last five trading days, large institutions showed a net inflow of 25.53 million yuan; In the last 20 trading days, the net inflow of funds from large institutions reached 33.34 million yuan. After the early strong wash, yesterday the stock closed up limit, for the company's buyback positive made a timely response. However, the buyback of listed companies can not change the long-term trend of stock prices, once the company completed the buyback plan, the long-term trend depends on the company's performance.

Liu Chang, Morning Post reporter

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