Zhejiang Supor Co.Ltd(002032) (002032)
event:
The company plans to implement an equity incentive plan for 293 core employees such as the general manager, chief financial officer and secretaries. The number of restricted shares to be granted is 1209500 shares, accounting for about 0.15% of the total share capital of the company. The source of restricted shares is stock repurchase in the secondary market, and the maximum price of shares to be repurchased shall not exceed 67.68 yuan / share.
comment:
This incentive award covers a wider range of people and the assessment objectives are more pragmatic. The assessment objective of this equity incentive is that the year-on-year growth rate of the company’s net profit attributable to the parent company from 2022 to 2023 shall not be less than 5% (China’s nominal GDP growth rate will be 3.0% in 2020), and it is expected that there will also be corresponding assessment indicators at the internal business unit and individual level. The grant price of incentive shares is 1 yuan / share, which is more conducive to attracting, retaining and motivating core backbone talents and closely connecting the interests of incentive objects with the value of shareholders. The number of equity incentive shares granted by the company in 2017 is 4.3 million shares, which are granted There are 189 people, and the assessment period is 2017-2020. The exercise goal of 100% completion rate is that the annual ROA is ≥ 18%, and the compound growth rate of domestic sales revenue is ≥ 10.6%, The compound growth rate of domestic sales operating profit is ≥ 12.4% (the growth rate of China’s nominal GDP in 2016-2017 was 8.4% / 11.5%), and the grant price is 1 yuan. Compared with the previous incentive scheme, this equity incentive is granted to a wider range of people, but the assessment objectives are more pragmatic and close to the current macroeconomic environment.
The channel system reform is effective, and the profit space is gradually opened. Since the new management took office, Zhejiang Supor Co.Ltd(002032) channel reform has undergone benign changes: 1) the online inventory system has been gradually improved: self operated and dealer sales have achieved unified warehouse and distribution. The company expects to achieve inventory of most businesses in the first half of 2022, reduce logistics costs and alleviate the financial pressure of dealers; 2) Increase in store direct sales system: tmall and JD pop flagship stores have been directly operated since 2020. In 2022, the company will continue to increase investment in direct sales system and further improve the company’s profit space. 3) Increased investment in e-commerce channels: on the one hand, the number of e-commerce employees has increased, the management of data centers, R & D centers and other links has been more refined, and the inventory efficiency has been optimized; Tiktok is the only small appliance company that tiktok orders to Jingdong warehouse, and the company is responsible for most of the channel promotion costs, training and marketing personnel, and online revenue growth is faster than the whole.
Profit forecast, valuation and rating: channel efficiency release + overseas profit elasticity, maintaining the “buy” rating. Since 2021, the company has continuously launched new products, such as air fryer, frying pan, automatic cleaning range hood, washing and towing all-in-one machine, expanded clean appliances while consolidating advantageous categories, and realized channel changes such as e-commerce agent transferring to direct sales + building emerging channels. Considering the positive factors such as the thickening of China’s e-commerce profits + the recovery of overseas gross profit margin, we raised the company’s net profit from 2021 to 2023 to 2.05 billion yuan (+ 2.2%), 2.43 billion yuan (+ 10.6%), 2.74 billion yuan (+ 11.8%), and the current price corresponding to PE is 26, 22 and 19 times, maintaining the “buy” rating.
Risk tip: the expansion of new products is less than expected, overseas sales are weak, and the price of raw materials is higher than expected.
