Hutchmed Share Price (HCM)

FTSE once again pushes through 8000 mark, several global markets making new highs too!

Its a bull run in all but name..

I think the BB rules may be different in HK, I think there is a mandate in the company articles that allows the Board to make a BB and to hold shares in treasury…..they do this to meet share options and other staff awards rather than just issue new shares and this is relatively minor in terms of $ values.

I assume that a major BB program would need to be announced to the market and purchases disclosed regularly…they would also need to buy from CKHH in a connected transaction to maintain the % holding so it would be quite a complex disclosure environment and would not happen quietly….

(touched ‘post message’ before adding “?” )

If the company is buying back, at what time scale, it should be made known to the shareholders?

Quietly buying back

The Board will need to formulate a dividend / leverage/ capital policy and be prepared to implement it in 2025/26. I think they were asked this by an analyst at the FY results call.

They currently have about USD 800m / £600m/ HKD 6bn in cash / equivalents of which I suspect 50-60% could be considered surplus to current operational needs

A hk$1 dividend (10p) would cost about £85m

A buy back of 5% of shares £125m

M&A includes product in-licensing, they have o/s commitments for Taz in this respect, but have headroom for further deals.

China was encouraging companies to enhance their value…..and not to sit on cash….

I dont expect anything to change this year.