The compound growth rate of net profit in 8 years is 51%.

Recently, a number of A-share listed companies, including Hengtong Optoelectronics, Tongding Interconnection, Tianwo Technology and Antarctic E-commerce, have disclosed the latest progress in repurchasing their shares. The reporter of Securities Daily noticed that Donghua Energy, the leading domestic LPG enterprise, also ranked among them.

On August 1, Donghua Energy announced the progress of share repurchase. As of July 31, 2019, the company had repurchased 580.277 million shares, accounting for about 3.52% of the company's total share capital, with a maximum transaction price of 901 yuan per share and a minimum transaction price of 794 yuan per share, with a total turnover of 478 million yuan. On August 31, 2018, Donghua Energy announced a plan to buy back its shares. Reporters learned that this repurchase is the company's first repurchase. According to the plan, all the funds for the share repurchase come from the company's self-financing. The total amount of funds for share repurchase will not be less than 600 million yuan, not more than 1.05 billion yuan, and the number of shares repurchased will not exceed 5% of the company's total equity. The price of the repurchased shares does not exceed 12.7 yuan per share. The repurchased shares are all used in the company's equity incentive or employee stock ownership plan. The repurchase period is 12 months from the date of the adoption of the repurchase plan by the shareholders'meeting of the company.

Regarding the repurchase situation, the reporter of Securities Daily called Donghua Energy Director's Secretariat Office many times, but failed to get through. After that, the reporter sent an interview outline to his open mailbox in the form of e-mail. Up to the time of submission, the company still did not reply. At the end of 2018, Donghua's energy and monetary fund balance was about 8.5 billion yuan, excluding the minimum demand for maintaining the normal operation of the company in 2018, which was about 5.1 billion yuan. The remaining Monetary Fund held was about 3.4 billion yuan, and the monetary fund was relatively abundant. Therefore, without affecting the cash needed for operation, the implementation of share repurchase is conducive to protecting the interests of investors, enhancing investors'confidence in the company, and consolidating the company's image in the capital market. An unnamed analyst told the Securities Daily in an interview. Journalist noticed that after the release of the aforementioned plan, Donghua Energy had twice revised the plan. On November 7 last year, the company revised its repurchase plan. The original number of shares to be repurchased did not exceed 5% of the company's total equity. After modification, the number of shares to be repurchased shall not exceed 10% of the total equity of the company.

On March 27 this year, Donghua Energy re-adjusted its repurchase plan. The original purpose of the proposed share repurchase includes, but is not limited to, employee stock ownership plans or equity incentives, corporate bonds convertible from shares to shares issued by listed companies, and laws and regulations that are necessary to safeguard the value of the company and the rights and interests of shareholders. Xu's situation. After the modification, 20% of the total share repurchase will be used for employee stock ownership plan or equity incentive, and 80% of the share repurchase will be used for convertible corporate bonds issued by listed companies.

In this regard, the independent director of Donghua Energy has said that the company's adjustment of share repurchase is to safeguard the company's value and shareholders'rights and interests, and the corresponding adjustment and prudent decisions made in the light of the company's actual situation and strategic development are conducive to safeguarding the actual interests of the vast number of investors, without damaging the legitimate rights and interests of shareholders. 

In recent years, Donghua Energy has successfully transformed from LPG trade to deep processing industry. Through channel resource integration and mergers and acquisitions, it has achieved a deep grasp of international raw material resources upstream. In the middle reaches, it has formed a full logistics channel layout of ocean fleet+warehousing base+wharf shoreline, and a deep processing industry of downstream alkane resources. The development has played a solid supporting role, and the advantages of the whole industrial chain are obvious. In 2018, the company's LPG trade volume was about 10.7 million tons, of which about 4.7 million tons were imported and about 5.37 million tons were re-exported. The total volume reached a new high, and the leading position of the industry was increasingly consolidated.

Reporter combed the last eight years'earnings and learned that Donghua's energy revenue and net profit have maintained a rapid growth trend. According to the statistics of Oriental Wealth Choice, the compound growth rate of total operating income in the past eight years reached 46.87%, the compound growth rate of net profit attributable to the shareholders of the parent company reached 50.67%, and the compound growth rate of non-net profit deducted reached 46.38%.

According to the latest performance forecast, in the first half of 2019, Donghua Energy is expected to earn 624 million yuan to 763 million yuan, an increase of - 10% to + 10% over the same period. For the first half of the performance changes, Donghua Energy said that in the first half of the chemical sector maintained stable growth, profitability has improved. However, due to the fluctuation of LPG entrepot trade market and the downturn of domestic LPG market in the second quarter, the profitability of the trading sector has declined. The company will gradually adjust its business structure to reduce the impact of fluctuations in profitability of the trading sector on the overall profitability of the company.

"From the recent profitability, Donghua Energy is growing more prominently. The company has foreign oil and gas resources, transportation capacity of refrigerated vessels, own ports, warehousing equipment and rich industry experience. It has a greater voice in the industrial chain from LPG to PDH, and has a certain competitive advantage. The above analyst told the Securities Daily reporter, "From the global perspective, the two major resource centers of the United States and the Middle East are the main exporters of LPG, while China still has a certain degree of dependence on LPG. With the release of mitigation signals from the Sino-US trade war, imported LPG is expected to usher in a turning point. As the leader of domestic LPG trade, the company is expected to be accepted."