Zhejiang Supor Co.Ltd(002032) (002032)
Event: 1) Equity Incentive: the company issued the restricted stock incentive plan for 2021. The number of restricted shares to be granted in the incentive plan is 1209500 shares, accounting for about 0.15% of the total share capital of the company at the time of announcement of the draft incentive plan. The total number of incentive objects shall not exceed 293, Including the middle and senior managers and core technologies who worked in the company when the company announced the draft incentive plan (business) personnel, as well as other employees identified by the board of directors as requiring incentives. The grant price of restricted shares is 1 yuan / share. The incentive plan will lift the restrictions on the sale of restricted shares granted in two phases according to the company's performance, the achievement of the performance of the business unit of the incentive object and the individual performance evaluation results of the incentive object, and 50% in the first phase (24 months from the date of completion of grant registration), 50% of phase II cancellation (36 months from the date of completion of grant registration). Performance assessment objectives: the first target of lifting the restriction period is that the net profit attributable to the parent company in 2022 is not less than 105% of that in 2021, and the second target of lifting the restriction period is that the net profit attributable to the shareholders of the parent company in 2023 is not less than 105% of that in 2022. Note: the impact of M & A and major asset disposal on profit and loss in the current period is excluded.
2) Repurchase: the company plans to use its own funds to repurchase some public shares in the form of centralized competitive trading to implement the equity incentive plan. The maximum price of the shares to be repurchased shall not exceed RMB 67.68/share. The number of shares to be repurchased this time is 1209500 shares. The term of this share repurchase is within 6 months after the board of directors deliberates and adopts this plan.
3) Carry out prepayment financing business: in 2022, the company plans to carry out prepayment financing business, with a total business credit line of no more than 70 million yuan and an annual total scale of no more than 140 million yuan after rolling use of the credit, so as to solve the capital demand problems encountered by high-quality dealers in the business process.
Event comments: the incentive plan is implemented, and the cost is expected to be repaired next year
In terms of price, the grant price is 1 yuan / share, Far lower than the current share price (65.2 yuan); from the perspective of the awarding object, the awarding object includes the company's general manager, chief financial officer, deputy general manager and other middle and senior managers and core technologies (business) personnel. Therefore, this incentive is mainly to encourage and reward the core members of the company and deeply bind the core employees with the interests of the company. In addition to the assessment of the overall profit level, the company will split the business unit for assessment. If the relevant performance of the business unit fails to meet the basic objectives, the restricted shares that can be lifted will be repurchased and cancelled, which is conducive to improving the division Enthusiasm for class growth.
We believe that the announced equity incentive target of no less than 5% year-on-year growth of net profit attributable to parent company in 22-23 years is the bottom line target. Affected by the rising price of raw materials this year, the profit side of the company is under pressure, and the gross profit margin of export sales has decreased significantly. According to the data disclosed in the 21h1 interim report, the export gross profit margin is only 14%. Next year, the company may reprice with the OEM parent company SEB, and the gross profit margin is expected to return to about 18% in previous years, driving the improvement of the overall gross profit margin. At the same time, in terms of domestic sales, driven by factors such as product structure upgrading and terminal price rise, the gross profit margin will be stable this year. If a large amount of decline next year, there may be additional profit contribution. According to our calculation, we expect the company's performance in 22-23 years to be RMB 2.44/2.81 billion, a year-on-year increase of 21% / 15%.
Investment suggestion: the company's equity incentive plan is implemented to deeply bind the core employees with the interests of the company. The company's domestic and foreign sales profit is expected to recover in 22 years. We have slightly raised the gross profit margin of the company's domestic and export sales next year. It is estimated that the net profit in 21-23 will be RMB 2.02, 2.44 and 2.81 billion (the previous value is RMB 2.02, 2.32 and 2.6 billion), and the corresponding dynamic valuation will be 26.2x, 21.6x and 18.8x respectively, maintaining the "buy" rating.
Risk tips: the sales of new products are less than expected, the risk of rising raw material prices, and the overseas demand is less than expected.
