(Yicai) June 3 -- Several Chinese home appliance makers, including Midea Group, are moving forward with share buybacks, signalling confidence and supporting shareholder value at a time when domestic market growth is under pressure.

Midea [SHE: 000333] repurchased about CNY3.4 billion (USD505.7 million) of its Shanghai-listed stock in the two months ended May 31, while Haier Smart Home [SHA: 600690] and Roborock Technology [SHA: 688169] have stepped up their buybacks in recent weeks, according to company filings.

Midea had bought about 43 million shares by the end of last month, the Foshan-based company said late yesterday. Haier Smart Home repurchased more than 49.4 million from March 27 to the end of last month, while Roborock acquired the first under its latest initiative on June 2.

Buybacks are often used to support stock prices, absorb excess cash, or fund employee incentives. These buybacks come as China’s home appliance market slows despite ongoing policy support, while exports have generally held up better than domestic sales.

Midea ended little changed at CNY82.61 (USD12.20) per share today. Haier Smart Home lost 2 percent to CNY20.70, while Roborock gave up 1.1 percent to CNY104.87 (USD15.50).

Midea’s board approved its repurchase plan on March 30, by which the company will spend between CNY6.5 billion and CNY13 billion (USD961 million to USD1.9 billion) within a year to buy back shares for an equity incentive plan and/or employee stock ownership plan.

The repurchase price is capped at CNY100 per share, and so far Midea has paid between CNY75.58 and CNY83.30.

Haier Smart Home said late on June 1 that it had spent CNY1 billion acquiring more than 49.4 million of its own stock, equal to 0.5 percent of its total share capital. The shares will also be used for employee stock ownership plans or equity incentives.

Roborock said late yesterday that it repurchased 113,700 shares through centralized bidding on June 2, equal to 0.04 percent of its total equity, paying CNY12 million (USD1.8 million).

China’s home appliance segments diverged sharply in April, with household air conditioner production and sales falling from a year earlier, refrigerator output and sales hitting record highs, and washing machine output and sales edging up, according to data released yesterday by market research company ChinaIOL.Com. Exports generally outperformed domestic sales.

With the market under pressure, businesses are using buybacks to signal confidence in their own prospects, Peng Yu, chief operating officer of Zitan Insight Data, told Yicai.

Although the “national subsidy” policy will continue this year, the trend of stratified domestic consumption will also persist, Peng said. Only innovation can break the current bottleneck in overall sales growth in China’s home appliance market, he added.

Editor: Emmi Laine