CAAS.US will repurchase up to $5 million of its stock in the next 12 months.
1min read China Automotive Systems (CAAS.US) announced that its board of directors approved a stock repurchase program with a maximum of $5 million, which will be conducted periodically in the open market at a price not to exceed $5.50 per share within the next 12 months. The news boosted CAAS's shares by more than 6% before the market opened on Monday, trading at $4.33.
The stock repurchase program will end on November 15, 2025, and the timing of the stock repurchases will be subject to various factors, including market conditions. CAAS Chairman Hanlin Chen said: "Our current stock valuation does not reflect our ongoing profitable sales growth, cash generation, technological advancements, and global market position." "Looking ahead, regardless of whether the vehicle is powered by an internal combustion engine, an electric transmission system, or a fuel cell, and whether it has a human driver or is autonomous, steering remains the key to all vehicle performance and safety. CAAS has the best products in the market."
Data showed that CAAS's net sales in the first nine months of 2024 were $462.2 million, and its net profit attributable to parent common stockholders was $20.9 million. As of September 30, 2024, cash and cash equivalents and pledged cash were $138.8 million.