To The Moon

$Kanzhun Limited(BZ)$ skyrocketed by 20% in a day, in addition to the performance exceeding expectations, the company's announcement of repurchase is also an important reason.

The purpose of stock repurchase by listed companies is usually to manage market value, provide equity incentives, stabilize stock prices, and enhance EPS and ROE, etc.

Stock repurchases in the US stock market are important factors supporting the market. Although enterprise repurchase activities fell sharply in 2020 due to the impact of the COVID-19 pandemic, the total repurchase amount of US stocks reached $1.025 trillion in 2023.

$Apple(AAPL)$ as a model of repurchase and dividend in the capital market, distributed a total of $132 billion in dividends from 2012 to 2022, repurchased a total of $554.4 billion, and the total amount of the two reached $686.4 billion.

Although Chinese concept stocks have performed poorly in the past few years, some companies with good asset conditions have also announced stock repurchase plans.

Most Chinese companies pay attention to the following:

• This is the amount announced for repurchase, which does not represent the actual repurchase amount. In other words, this is the upper limit.

• The time announced is the time of the latest updated plan, not necessarily the time the plan starts, it may be to increase the repurchase amount.

• The repurchase proportion is calculated based on the total market value at the current price, which is relatively high for companies with higher repurchase amounts.

• Some companies have used most of the repurchase quota in the plan, but it does not rule out that companies with good asset quality will continue with new repurchase plans.

  

In addition, companies listed on the Hong Kong stock market will announce the repurchase amount daily after repurchase. Several major Chinese concept stocks have not had low actual repurchase amounts over the past two years. $TENCENT(00700)$ $Alibaba(BABA)$ $Baidu(BIDU)$ $MEITUAN-W(03690)$

Furthermore, some companies with lower market value, such as $Sohu.com(SOHU)$ , with an overall market value of only $300 million, have a high repurchase plan of up to $150 million, which in fact is a very high proportionate investment.