Nisun International Announces Additional Share Repurchases Under It's $15 Million Buyback Program

Rhea-AI Summary

Nisun International (NASDAQ: NISN) has announced additional share repurchases under its $15 million buyback program launched on October 9, 2024. As of December 17, 2024, the company has repurchased 121,341 shares at an average price of $8.68 per share, totaling $1.05 million.

The company believes its stock is currently undervalued, trading at a significant discount to book value and at a P/E ratio below industry average. The buyback is expected to be accretive to earnings per share. CEO Xin Liu highlighted recent expansion into new sectors including rubber supply chains, traditional Chinese medicine, and campus catering through strategic partnerships. The company sees favorable conditions for growth supported by Chinese government stimulus measures.

Positive

• Implemented $15 million share buyback program
• Completed $1.05 million in share repurchases at $8.68 per share
• Expected EPS accretion from share reduction
• Expansion into new business sectors (rubber, medicine, catering)
• Strong cash position enabling share repurchases

Negative

• Stock trading significantly below book value
• P/E ratio below industry average indicating potential market concerns

Insights

Financial Analyst

The $1.05 million share repurchase at $8.68 per share represents a strategic move that directly impacts shareholder value. With a market cap of $26.28 million, this buyback accounts for approximately 4% of the company's value. The program still has $13.95 million remaining, suggesting potential for significant future repurchases. The company's rationale citing trading below book value and industry P/E multiples indicates management's confidence in the stock's undervaluation. The buyback's EPS accretion effect should provide immediate mathematical benefit to shareholders, though the relatively small size of current purchases limits near-term impact. The expansion into new sectors like rubber supply chains and traditional Chinese medicine diversifies revenue streams, potentially justifying management's valuation stance.

Market Research Analyst

The timing of this buyback amid China's economic stimulus measures appears strategic. Management's emphasis on trading below book value suggests a compelling valuation proposition, though investors should note this represents only 7% of the announced $15 million program. The expansion into new sectors like rubber supply chains and traditional Chinese medicine indicates a diversification strategy that could reduce business risk. However, the relatively modest initial repurchase volume might suggest cautious execution or market liquidity. The company's focus on technology-driven supply chain solutions in emerging sectors, combined with government support for business growth, positions it well for potential market revaluation.

SHANGHAI, Dec. 17, 2024 /PRNewswire/ -- Nisun International Enterprise Development Group Co., Ltd. ("Nisun International" or the "Company") (Nasdaq: NISN), a technology and industry driven integrated supply chain solutions provider, today announced additional share repurchases under its $15 million share buyback program, which was announced on October 9, 2024.  

As of December 17, 2024, the Company has repurchased a total of 121,341 shares at an average price of $8.68 per share, for a total of $1.05 million. These repurchases demonstrate Nisun International's ongoing commitment to enhancing shareholder value by strategically deploying capital.

The buyback reflects the Company's belief that the current market price undervalues the Company's intrinsic value as the Company stock is currently trading at a significant discount to its book value and at a price-to-earnings (P/E) ratio lower than the industry average. The repurchases are expected to be accretive to earnings per share (EPS), benefiting existing shareholders as the Company's outstanding shares are further reduced.

"We remain committed to enhancing shareholder value through the execution of our long-term strategy," said Mr. Xin Liu, CEO of Nisun International. "Recently, we expanded our supply chain service operations into several new sectors, including rubber supply chains, traditional Chinese medicine, and campus catering, through strategic partnerships. These developments underscore our ability to identify and capitalize on opportunities in dynamic and high-growth industries by taking advantage of our capital, industrial experience, advanced technology, and strong connections with our customers. "

"Additionally, the recent improvements in the Chinese economy, supported by government stimulus measures, provide a more favorable environment for business growth and innovation. Our confidence in the Company's future growth is further reinforced by these additional share repurchases, which represent a strategic and efficient use of our capital to create long-term value for our shareholders."

About Nisun International Enterprise Development Group Co., Ltd.

Nisun International Enterprise Development Group Co., Ltd. (NASDAQ: NISN) is a technology-driven, integrated supply chain solutions provider focused on transforming the corporate finance industry. Leveraging its industry experience, Nisun International is dedicated to providing professional supply chain solutions to Chinese and foreign enterprises and financial institutions. Through its subsidiaries, Nisun International provides users with professional solutions for technology supply chain management, technology asset routing, and digital transformation of tech and finance institutions, enabling the industry to strengthen and grow. At the same time, Nisun International continues to deepen the field of industry segmentation through industrial and financial integration. Focusing on industry-finance linkages, Nisun International aims to serve the upstream and downstream of the industrial supply chain while also assisting with supply-side sub-sector reform. For more information, please visit http://ir.nisun-international.com/

Cautionary Note Regarding Forward-Looking Statements

This press release contains information about Nisun International 's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. Nisun International encourages you to review other factors that may affect its future results in Nisun International 's registration statement and in its other filings with the Securities and Exchange Commission. Nisun International assumes no obligation to update or revise its forward-looking statements as a result of new information, future events or otherwise, except as expressly required by applicable law.

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SOURCE Nisun International Enterprise Development Group Co., Ltd.

FAQ

How many shares has Nisun International (NISN) repurchased as of December 17, 2024?

Nisun International has repurchased 121,341 shares at an average price of $8.68 per share, totaling $1.05 million.

What is the total value of NISN's share buyback program announced in October 2024?

The total value of Nisun International's share buyback program is $15 million.

Which new sectors has Nisun International expanded into recently?

Nisun International has expanded into rubber supply chains, traditional Chinese medicine, and campus catering sectors through strategic partnerships.

What is the average price per share NISN paid in its recent buyback?

Nisun International paid an average price of $8.68 per share in its recent buyback program.

How will NISN's share buyback program affect earnings per share?

The share buyback program is expected to be accretive to earnings per share (EPS) as it reduces the number of outstanding shares.