Nari Technology Co.Ltd(600406) (600406)
Event: the company issued the restricted stock incentive plan (Draft) for 2021, granted restricted shares to 1300 people including directors, secretaries, deputy general managers and chief engineers, and made provisions on the performance evaluation from 2022 to 2025.
comment:
Strengthen confidence in growth and set an assessment standard that the net profit is not less than 5 times the average value of benchmarking enterprises
There are 1300 incentive objects, including senior managers of the company and its subordinate units, and core backbone at different levels such as R & D, engineering and marketing. The assessment conditions include that the rate of return on net assets in the four sales restriction lifting periods from 2022 to 2025 shall not be less than 14%, and shall not be lower than the 75th percentile level of the benchmarking enterprise; 22-25 the compound growth rate of annual net profit compared with that since 2020 shall not be less than 10%, and not less than 5 times of the average net profit of the benchmarking enterprise; The compound growth rate of annual R & D expenses shall not be less than 5% compared with that since 2020; annually Δ EVA is greater than 0. A total of 18 benchmarking enterprises were selected, including Tbea Co.Ltd(600089) , Dongfang Electric Corporation Limited(600875) , State Grid Yingda Co.Ltd(600517) , Jiangsu Linyang Energy Co.Ltd(601222) , Sieyuan Electric Co.Ltd(002028) .
Double carbon, new power, high prosperity, and steady growth of power grid equipment
China Southern Power Grid proposed to invest 670 billion yuan during the 14th Five Year Plan period, an increase of 51% over the actual investment in the 13th five year plan. The State Grid said that it plans to invest 350 billion US dollars in the upgrading of the power grid during the 14th Five Year Plan period. With the increase of the installed proportion of new energy, the growth of emerging load and the access of matching power electronic equipment, new requirements are put forward for the stability and flexibility of the new power system, and the investment in smart grid is expected to achieve structural growth.
Set up a new power system joint laboratory to focus on the “double carbon” goal
In the first three quarters of 2021, the company achieved an operating revenue of 23.232 billion yuan, a year-on-year increase of 15.59%; The net profit attributable to the parent company was 3.193 billion yuan, a year-on-year increase of 25.27%. The company continued to increase R & D investment. In October, the company signed and unveiled a new power system joint laboratory project with the University of science and technology of China, promoted basic research, forward-looking technology and key common technology research related to new energy application, electrochemical energy storage materials, artificial intelligence, big data, Internet of things and intelligent sensing, and accelerated the integrated development of industry, University, research and application.
Investment suggestion: under the background of “carbon neutralization”, the rapid increase of new energy installation puts forward new requirements for grid side stability. The company issued an equity incentive plan to bind the interests of core personnel and highlight long-term growth confidence. We maintained the company’s profit forecast of RMB 6.04/7.02/7.91 billion for 21-23 years, corresponding to EPS of RMB 1.09/1.27/1.43 for 21-23 years, and the current stock price corresponding to PE of 22 years was 34 times, maintaining the “buy” rating.
Risk tip: the power grid investment is less than expected, the operation risk of overseas business and the risk of intensified competition.
