Xlinmen Furniture Co.Ltd(603008) (603008)
The company issued the 2021 employee stock option incentive plan (Draft), it is proposed to grant 4 million stock options to 167 employees including middle managers and core technical backbone, accounting for about 1.03% of the total share capital of the company, including 3.2 million stock options for the first time, accounting for about 0.83% of the total share capital of the company, accounting for 80% of the total number of shares to be granted under the incentive plan. The stock options first granted under the incentive plan will be divided into three phases after 12 months from the date of authorization The proportion of exercise in each period is 40%, 30% and 30% respectively. The income assessment objectives for 22-24 years are 93.35/116.96/14.621 billion respectively, and the profit assessment objectives are 714/9.25/1.207 billion respectively. Each period of assessment shall meet one of the two conditions of income / profit. The exercise price is 31.16 yuan per share, and the amortization cost of equity in 22-24 years is expected to be 596.6/340.14/1610300 yuan respectively.
The company also issued the employee stock ownership plan for 2021, with 42 participants including directors, supervisors, senior executives and core managers. The scale of the stock ownership plan does not exceed 6766600 shares, accounting for about 1.75% of the total share capital. The stock source is the shares previously repurchased by the company. The performance assessment objectives of the employee stock ownership plan are the same as those set in the stock option incentive plan. We believe that issuing the option incentive plan and employee stock ownership plan at the same time can deeply bind the interests of the core team and improve the team cohesion,
Mobilize the enthusiasm of employees and promote the high-speed and high-quality development of the company.
Independent brands Wuxi Online Offline Communication Information Technology Co.Ltd(300959) increased in all channels, and the proportion continued to expand, promoting the improvement of profitability. The revenue in the first three quarters was RMB 5.043 billion, a year-on-year increase of + 46.05%, of which Q3 achieved a revenue of RMB 1.936 billion, a year-on-year increase of + 31.06%. The net profit attributable to the parent company in the first three quarters was RMB 374 million, a year-on-year increase of + 107.47%, of which Q3 achieved RMB 156 million, a year-on-year increase of + 13.42% respectively. With the continuous enhancement of the company’s brand strength, the proportion of independent brands continued to increase. As of 21h1, the retail business of independent brands had achieved a revenue of 1.992 billion yuan, a year-on-year increase of + 107%, compared with 19h1 + 98%, accounting for 64% of the total revenue, a year-on-year increase of about 16pct. Among them, offline sales amounted to 1.57 billion yuan, a year-on-year increase of + 114%, compared with 19h1 + 88%; Online sales reached 422 million, a year-on-year increase of + 87%, compared with 19h1 + 141%. Compared with the OEM business, the profitability of independent brands is better, which promotes the continuous optimization of the company’s profitability. In the first three quarters, the parent net interest rate was 7.4%, year-on-year + 2.2pct, of which the parent net interest rates of Q1 / Q2 / Q3 were 6.8% / 7.2% / 8.1% respectively, showing a quarterly recovery trend.
Offline continues to seize high-quality store resources, and “double 11” online multi platforms have continuously won the sales champion.
The categories of the company are gradually improved. We believe that the rich product matrix is conducive to meeting the one-stop shopping needs of consumers and promoting systematic sales, so as to improve the customer unit price. On the other hand, it is conducive to opening a series of stores in the stores in a multi category mode to seize the high-quality traffic entrance. By the end of June, the company had 2576 / 898 / 54 / 489 Xlinmen Furniture Co.Ltd(603008) / Ximian / xiatu / M & D stores respectively, with a net increase of 374 in 21h1, and most of the new stores were in class a high-quality positions in home stores, further occupying the offline transaction scene. At the upper end of the line, the “double 11” topped the pre-sale list of tmall and jd.com. Tmall’s pre-sale exceeded 100 million in only 19 minutes, and the sales volume of one hour’s pre-sale reached the first in the whole category. The sales volume of single 4dpro comfortable beds reached 34259.
Constantly explore new channels, promote brand transformation and upgrading, and firmly position “deep and good sleep”.
In addition to the layout of traditional Ka stores, the company tries to explore new modes of cooperation. In July, it signed a strategic cooperation agreement with Ctrip. It plans to cover 1-1.5 million rooms in 50000 hotels in the next three years, continuously expand the depth of sleep scene service and explore new growth points. The company has newly developed the campus mattress business, entered the campus for promotion in the school season, established a student sleep research center, paid attention to the sleep status of students, developed and launched student mattresses with antibacterial and mite prevention functions, and established brand awareness from the student era. Guan Xuan Yang Yang, as the brand spokesperson, named and sponsored popular variety shows such as running brothers, followed the trend of generation Z and strengthened the implementation of the brand rejuvenation strategy.
Profit forecast and Valuation: as the leader in the mattress industry, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels continue to expand and the influence of independent brands is gradually established. With the continuous optimization of the industry competition pattern, under the background of the rise of domestic products, the leading position of the company will continue to be consolidated by relying on strong product and channel forces. The employee incentive plan will deeply bind the interests of core employees and improve team cohesion, We raised the profit forecast. It is expected that the net profit attributable to the parent company from 21 to 23 will be RMB 550 / 720 / 940 million respectively (the original value is RMB 525 / 711 / 904 million), a year-on-year increase of + 75.7% / + 30.6% / + 30.4%, corresponding to PE of 22x / 17x / 13X, maintaining the “buy” rating.
Risk tip: the incentive plan can be implemented only after the special resolution of the general meeting of shareholders of the company is considered and approved. The expansion of offline stores is less than expected, the industry competition is intensified, and the price of raw materials fluctuates.
