\u3000\u3000 Muyuan Foods Co.Ltd(002714) (002714)
Event: the company issued the 2022 restricted stock incentive plan (Draft) on February 11, which plans to encourage 6093 employees including directors, senior managers and core managers of the company. The number of restricted shares to be granted under the plan is 81080700 shares, accounting for 1.54% of the total share capital of the company at the time of signing the incentive plan. Among them, 64.8645 million shares were granted for the first time, accounting for 80% of the total amount of restricted shares granted this time; 16.2162 million shares are reserved, accounting for 20% of the total amount of restricted stock grants. The first proposed grant price of restricted shares in this incentive plan is 30.52 yuan / share.
Comments:
The incentive scope of the company’s restricted stock incentive plan in 2022 has been greatly expanded compared with 2019. The incentive objects granted by the company’s 2022 restricted stock incentive plan (Draft) include 6093 employees, including directors, senior managers, core managers, core technicians and core business personnel. The incentive scope of the 2019 restricted stock incentive plan previously released by the company includes 914 directors, senior managers, core managers and core technicians. Compared with 2019, the incentive scope of the company’s restricted stock incentive plan in 2022 has been greatly expanded. A wide range of incentives can effectively stimulate employees’ work enthusiasm, bind the interests of core talents, and provide a solid guarantee for the smooth development of the company’s follow-up business.
The objectives of the restricted stock incentive plan inject new impetus into the subsequent development of the company. The incentive plan issued by the company for the first time grants restricted shares. The assessment year for the lifting of restrictions on sales is two fiscal years from 2022 to 2023, and one assessment is made in each fiscal year. The performance assessment objectives are based on the pig sales in 2021, and the growth rate of pig sales in 2022 shall not be less than 25%; Based on the pig sales volume in 2021, the growth rate of pig sales volume in 2023 shall not be less than 40%. The restricted stock incentive plan has established and improved the incentive and restraint mechanism of the company, injected new impetus into the subsequent development of the company, and is conducive to the long-term and healthy development of the company.
Pay attention to the process of capacity removal and actively grasp the inflection point of pig cycle. The number of pigs sold by the company in 2021 was 40.263 million, with a year-on-year increase of 122.26%, ranking first in the industry. With the continuous expansion of pig production capacity, pig prices have fallen rapidly since 2021, and pig breeding enterprises generally entered the loss range in the third quarter of 2021. As a leader in the pig breeding industry, the company achieved positive growth in operating revenue in 2021 with its competitive advantage. In 2021, the operating revenue of the company’s pig breeding business was 75.090 billion yuan, a year-on-year increase of 36.27%. Overall, the current supply of the pig industry is relatively surplus, and the industrial chain is in a trend downward channel. In the follow-up, we need to actively pay attention to the process of capacity removal and grasp the inflection point of the pig cycle.
Maintain recommended ratings. It is estimated that the company’s earnings per share in 2021 / 2022 will be 1.97 yuan and 1.89 yuan respectively, and the corresponding PE valuation will be 31 times and 32 times respectively. As a leader in the pig breeding industry, the company’s 2022 restricted stock incentive plan (Draft) released this time combines the interests of employees with the interests of the company, stimulates the enthusiasm of employees and is conducive to the realization of the company’s strategic objectives. Optimistic about the long-term development of the company in the future and maintain the “recommended” rating of the company.
Risk warning. National policies, large-scale outbreaks of African swine fever, avian influenza and other diseases, lower than expected production capacity, lower pig prices, intensified market competition and so on.
