Oriental Venture's stock price has long fallen below net asset value, triggering a valuation enhancement plan, with share buybacks postponed and high dividends implemented simultaneously

On the evening of February 12, Orient Corporation disclosed an announcement that, due to the company’s stock being in a long-term undervalued state, it officially launched a valuation enhancement plan for 2026. On the same day, the share repurchase measures included in the valuation enhancement plan were also implemented.

Stock price breaking below net asset value for 12 consecutive months triggered the valuation enhancement plan, with the share repurchase extension also being executed simultaneously

According to the company’s announcement, the launch of Orient Corporation’s valuation enhancement plan this time is driven by the rigid trigger condition of the stock being in a long-term undervalued state. The announcement shows that from January 1, 2025, to December 31, 2025, the company’s stock fluctuated at a low level, with the closing price each trading day for 12 consecutive months below the audited net asset per share for the most recent fiscal year. Specifically, from January 1 to April 24, 2025, the daily closing price was below the audited net asset per share of 8.26 yuan for 2023; from April 25 to December 31, 2025, the daily closing price was below the audited net asset per share of 8.60 yuan for 2024. Based on the lowest closing price of 5.78 yuan on April 8, 2025, the company’s price-to-book ratio is approximately 0.7 times; based on the highest closing price of 8.41 yuan on November 3, 2025, the P/B ratio is about 0.98 times, both below 1, indicating the stock was undervalued throughout the year.

According to relevant regulations in the “Guidelines for the Supervision of Listed Companies No. 10—Market Value Management,” when a stock remains undervalued for a long period, the listed company must formulate and disclose a valuation enhancement plan. Orient Corporation’s “2026 Valuation Enhancement Plan” was approved by the company’s board of directors on February 11.

This valuation enhancement plan focuses not only on core businesses such as goods trade, modern logistics, and health industries, and strengthening investor relations management, but also emphasizes improving the investor return mechanism, specifically including advancing share repurchases and cancellations, and maintaining high-level cash dividends.

Among them, the company’s ongoing share repurchase plan received new progress on the same day the plan was disclosed. The company announced in late October 2025 that it planned to use self-raised or internally available funds to repurchase shares worth between 50 million and 100 million yuan, all to be canceled to reduce capital. The repurchase period would not exceed three months starting from November 21, 2025 (the date of shareholder approval), and the company officially launched the repurchase on December 11, 2025.

As of February 10, 2026, the company had repurchased a total of 5.8877 million shares, accounting for 0.68% of the total share capital, with a total expenditure of 50.0975 million yuan, successfully reaching the lower limit of the repurchase target. According to the original plan, the repurchase was supposed to end on February 13, but the company announced on the day before the deadline, coinciding with the release of the valuation enhancement plan, that the repurchase period would be extended to May 13. The company stated that it would consider the deviation between the secondary market stock price and the company’s intrinsic value, flexibly adjusting the repurchase pace, and strive to gradually approach the upper limit of 100 million yuan when conditions permit. This move aims to enhance the company’s investment value and also signals management’s firm confidence in the company’s future development.

It is worth noting that all the repurchase funds used by the company come from its own funds. Its net profit attributable to the parent in the first three quarters of 2025 was 180 million yuan. If the final repurchase amount reaches the upper limit of 100 million yuan, will it impact the company’s daily operations, R&D investments, and other activities? A staff member from Orient Corporation’s securities department responded to an investor inquiry, saying, “The company has assessed that the repurchase will not affect normal operations. Currently, all funds are from self-raised sources, but since it has been delayed, if there are relevant developments later, such as loans, the company will issue an announcement. The repurchase plan states that funds can be from self-raised or internally available sources. Future adjustments will depend on market conditions and the company’s situation, gradually approaching the upper limit.”

On the evening of February 13, the company issued another announcement stating that it had obtained a “Loan Commitment Letter,” with a maximum loan limit of no more than 90 million yuan, a term of three years, and the loan purpose limited to repurchasing the company’s stock.

High-level dividend distribution mechanism to continue, can 2025 end the three-year decline in performance?

In addition to share repurchases, maintaining high levels of cash dividends is also an important support for investor returns in this valuation enhancement plan. The company explicitly stated that in 2026, it will generally continue to implement a “annual + mid-term” two-time cash dividend mechanism, and strive to ensure that the cash dividend ratio (including the cancellation of repurchased shares) is not less than 50% of the net profit attributable to the parent company’s shareholders for 2025.

Reviewing past dividend distributions, Orient Corporation has increased its dividend payout since 2024. In 2024, the company implemented both annual and mid-term dividends, with a total payout of 147 million yuan, setting a record high; this accounted for 67.76% of the net profit attributable to the parent company for that year. The mid-term dividend for 2025 was also distributed in early December last year, totaling 25.2856 million yuan, about 14.05% of the net profit attributable to the parent from January to September 2025. Prior to this, the company had maintained an annual cash dividend for many years, with the dividend ratio generally around 30%.

So, is this high dividend payout policy sustainable in the long term, serving as a relatively stable way to reward shareholders? A staff member from the securities department responded, “It’s possible, at least within the regulated range,” emphasizing that the company attaches great importance to shareholder dividends.

Behind the company’s multiple measures to maintain market value is the reality of its recent performance pressure. Public financial data shows that in 2021, the company achieved a net profit attributable to the parent of 381 million yuan, reaching a record high since listing, but thereafter, performance entered a continuous decline.

From 2022 to 2024, Orient Corporation’s net profit attributable to the parent declined for three consecutive years, with 2024’s net profit at 216 million yuan, down approximately 43.31% from the 2021 peak; in the first three quarters of 2025, performance continued to slightly decline, with net profit attributable to the parent of 180 million yuan, a year-on-year decrease of 4.19%.

Regarding the full-year performance in 2025, the staff member said: “As a trading company, Orient Corporation is greatly affected by market conditions, especially with tariffs in 2025. The data for the fourth quarter is not out yet, so the overall situation cannot be disclosed. When asked whether 2025 can end the three-year decline in performance, the staff responded, ‘It looks like we can get through it steadily, but we cannot guarantee because the financial data is not yet available. We expect to have more clarity when the company releases the annual report around April.’”

According to data from iFinD, as of the close on February 13, Orient Corporation’s total market value was 7.446 billion yuan, with a P/B ratio of about 0.97 times, still in a state of undervaluation.

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