\u3000\u3000 Jinhua Chunguang Technology Co.Ltd(603657) (603657)
Event: the company issued the restricted stock incentive plan for 2022. The number of restricted shares to be granted to incentive objects in the incentive plan is 4026200 shares, accounting for about 3.00% of the company's total share capital of 130 million shares. Among them, 3221000 restricted shares were granted for the first time, accounting for about 2.40% of the total 130 million shares of the company's share capital and 80% of the total number of restricted shares to be granted under the incentive plan; 805200 restricted shares are reserved for grant, accounting for about 0.60% of the company's total share capital of 130 million shares and 20% of the total number of restricted shares to be granted under the incentive plan.
Incentive objects: a total of 118 people, including senior managers and key employees who worked in the company (including subsidiaries) when the company announced the incentive plan. Grant price: 12.21 yuan / share.
The company level performance assessment objective of the restricted shares granted for the first time: Based on the operating income of 21 years, the revenue growth rate in 22 / 23 / 24 years is not less than 30% / 60% / 90%, that is, the average annual growth rate in 22 / 23 / 24 years is not less than 30% / 23% / 19%, and the CAGR from 2021 to 2024 is 24%.
The reserved part is divided into two types. The first one is granted before September 30, 2022 (including September 30, 2022). The assessment objective is to take the operating income of 21 years as the base, and the revenue growth rate of 22 / 23 / 24 years is not less than 30% / 60% / 90%, that is, the average annual growth rate of 22 / 23 / 24 years is not less than 30% / 23% / 19%. The second is granted after September 30, 2022. The assessment objective is to take the operating income of 21 years as the base, and the revenue growth rate of 23 / 24 years is not less than 60% / 90%, that is, the average annual growth rate of 23 / 24 years is not less than 23% / 19%.
In addition, the company has performance appraisal requirements at the individual level. The proportion of individual lifting the sales restriction is a (100%), B (80%), C (60%) and D (0%). On the premise of achieving the company's performance objectives, the individual incentive object can lift the sales restriction limit in the current year = the individual plans to lift the sales restriction in the current year × Proportion of individual lifting of sales restrictions.
Investment advice
The company's equity incentive plan has set a high minimum target for medium-term income growth. We believe that, on the one hand, the company is the leader in China's clean electrical hose and accessories industry. Relying on the advantages of technology and products, the company has long served high-quality customers at the b-end, adopted leading technology and created scale advantages to reduce costs and increase efficiency. On the other hand, the company has arranged the whole machine field through the acquisition of vacuum cleaner enterprises at home and abroad. It is expected that the long-term revenue will grow steadily and the cash flow will be good. With the steady growth of the scale of the clean electrical hose business and the further release of the whole machine capacity, the performance is expected to grow further. We will not adjust the previous profit forecast for the time being. It is estimated that the net profit of the company from 2021 to 2023 will be attributable to the parent company, and the net profit will be RMB 150 / 2.2 / 290 million respectively; The corresponding dynamic valuations are 22x, 15x and 11x respectively. Maintain the "buy" rating.
Risk warning: raw material price fluctuation risk; Market competition risk; Risk of substitute products; exchange-rate risks; The OEM penetration rate is lower than expected.
