\u3000\u3000 Anhui Korrun Co.Ltd(300577) (300577)
The release of the employee stock ownership plan shows confidence, adds long-term development momentum and maintains the “buy” rating
On January 25, the company issued the draft of the fifth phase of the employee stock ownership plan. The stock source of the employee stock ownership plan is the shares repurchased by the company’s special account for repurchase. The number of shares is 278038, accounting for about 0.12% of the current total shares of the company. The participants of this employee stock ownership plan are the core backbone employees of the company, excluding the directors, supervisors and senior executives of the company, with a total of no more than 41. The holder of this shareholding plan is an important executor of the company’s strategy. The shareholding plan will fully mobilize and stimulate the work enthusiasm of the company’s talents. We maintain the profit forecast. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 223 million yuan, 305 million yuan and 404 million yuan respectively, corresponding to EPS of 0.93 yuan, 1.27 yuan and 1.68 yuan respectively. The current share price corresponds to PE of 22.9/16.8/12.7 times, maintaining the “buy” rating.
Several equity incentives, retain the backbone of outstanding talents and seek the long-term development of the company
On September 25, 2017, the company issued the first draft of the employee stock ownership plan. The total number of employees participating in the plan is no more than 300, and there are two directors, supervisors and senior executives. The maximum amount of funds raised by the employee stock ownership plan is 153 million yuan, the self raised funds of the company’s employees are no more than 51 million yuan, and the loan support provided by Mr. Fan Jinsong is no more than 102 million yuan. On October 12, 2020, the company issued the draft of phase II and phase III ESOP, and plans to withdraw special incentive funds with a total amount of no more than 25.07 million yuan and 2.53 million yuan respectively, with a total amount of no more than 27.6066 million yuan, for this ESOP. The main participants are senior executives, middle-level core backbone personnel and excellent employees, with a total of no more than 62 people. On June 22, 2021, the company issued the fourth draft of the employee stock ownership plan. The stock source of the stock ownership plan is the shares repurchased in the company’s special account for repurchase, and the number of shares is 389283.
Investment highlights: the business space of end B is broad, and the marginal change of end C is good
From the perspective of B2B business supply, the company’s capacity in Indonesia is expected to be released steadily, and new capacity will be released in 2022h1 and 2023h1. In terms of demand, the company’s top two customers, Nike and decathlon, have maintained high growth. We expect orders from Nike to increase by 20% +, decathlon to increase by 30% and VF to increase by 100% in 2022. At present, adidas has completed the fabric + garment factory inspection, Puma has completed the fabric factory inspection, and the development of new customers is smooth. In terms of B2C business, 90 points further optimizes the product structure, steadily improves the gross profit margin, and is expected to achieve breakeven in 2022. In terms of Xiaomi brand, the company adjusted its strategy to reduce some products that pursue the ultimate cost performance, increase the distribution channels in China and overseas, and adjust the expansion point from box to package, so as to further improve the operation quality.
Risk tip: the epidemic caused the travel market to recover less than expected, and the brand operation was less than expected.
