\u3000\u3000 Wuxi Autowell Technology Co.Ltd(688516) (688516)
Event: on February 23, the company issued the draft of equity incentive in 2022.
Two heavyweight equity incentive drafts within one year, deeply binding core technology and management personnel. On September 1, 2021, the company issued the draft of restricted equity incentive, which plans to grant 471 people and 560000 restricted shares. After that, the company issued the draft of heavy equity incentive again. The incentive plan intends to grant 950000 restricted shares to the incentive objects, accounting for about 0.96% of the total share capital of the company, of which 850000 shares are granted for the first time, accounting for 89% of the total equity granted this time; 100000 shares are reserved, accounting for 11% of the total equity granted this time. The grant price (including reserved grants) is 110 yuan / share, with 850 incentive objects, covering the company’s directors, senior managers and core technicians, accounting for 39% of the total number of employees. It is deeply bound to the company’s core technology and management team.
The performance evaluation target of 2022 equity incentive draft has increased by more than 23% over the years compared with 2021 equity incentive draft. According to the draft of equity incentive in 2022, based on the net profit of 327 million after deducting the impact of equity incentive expenses in 2021, the growth rate of the company’s performance assessment objectives from 2022 to 2025 shall not be less than 50%, 100%, 150% and 200% respectively, and the year-on-year growth rate shall not be less than 50%, 33%, 25% and 20% respectively, That is, from 2022 to 2025, after excluding the impact of equity incentive expenses, the net profit deducted from non parent company shall not be less than 490 million yuan, 650 million yuan, 820 million yuan and 980 million yuan respectively, compared with the performance evaluation target of equity incentive in 2021 (the net profit deducted from non parent company after excluding the impact of equity incentive expenses in 22-24 years is 380 / 53 / 640 million yuan respectively), The company’s performance assessment objectives have increased by more than 23% over the years (28% / 23% / 27% respectively in 22-24 years). Considering the gradual release of various business orders, refined management optimization costs and government subsidies, the actual profit of the company is expected to exceed the performance appraisal target.
Price reduction of silicon materials in 22 years（ β） And company order flexibility（ α） It is expected to double stack, with the attribute of undervalued value + high growth + high certainty. The downstream of the company’s main business is the photovoltaic module customers. The profit and willingness to expand production are highly related to the price of silicon material and silicon wafer. It is expected that polysilicon will gradually turn to the price decline range in 2022, which is expected to release the profit pressure of components and strengthen the competitiveness of the company β Properties. In terms of orders, benefiting from the increased penetration of large-size series welding machines and smbb series welding machines, as well as the company’s layout in fields such as no main grid and IBC series welding, the company’s series welding machine orders are expected to continue to benefit from new technology iterations and maintain the rhythm of high-frequency replacement. Semiconductor bonding machine is expected to continue to break through the verification and orders of key customers in 2022 and become an important main business of the company in the future, following the landing of Wuxi Deli core orders in 2021. In addition, the company’s single crystal furnace, battery equipment, lithium battery and other fields go hand in hand, and the orders are expected to continue to increase sharply in 2022.
Profit forecast: benefiting from the continuation of high-frequency iteration of series welding machine and the promotion of multi platform layout such as bonding machine and lithium battery of the company, it is estimated that the net profit attributable to the parent company of the company from 2021 to 2023 will be RMB 360 / 550 / 720 million, corresponding to PE 55 / 36 / 27 times, maintaining the “buy” rating.
Risk tip: the newly installed capacity of photovoltaic is less than expected, the iteration of module technology is less than expected, and the industry competition is intensified.
