Shares of CSPC Pharmaceutical Group Ltd (CSPC PHARMA) surged as much as 9.17% on Thursday, propelled by the company's announcement of a share buyback plan worth up to HK$5 billion (approximately $640 million).
In a statement released on Wednesday, CSPC PHARMA said it would repurchase its shares on the open market using the company's available cash resources over the next 24 months. The buyback program is aimed at enhancing shareholder value and reflects the company's confidence in its future prospects.
Share buybacks are typically viewed as a positive signal by investors, as they reduce the number of outstanding shares and can potentially boost earnings per share and stock valuations. The move by CSPC PHARMA suggests that the company believes its shares are undervalued, presenting an attractive investment opportunity.
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