Shanghai Bairun Investment Holding Group Co.Ltd(002568) (002568)
Shanghai Bairun Investment Holding Group Co.Ltd(002568) announcement: the company issued the 2021 restricted stock incentive plan (Draft), which plans to grant 3 million restricted shares to 227 incentive objects, accounting for about 0.40% of the total share capital, and the initial grant price is 30.34 yuan / share.
Key investment points:
Steady incentive objectives and share the company’s growth with employees. The assessment objective of this equity incentive is: Based on the revenue of 21 years, the revenue growth of 22-24 years is not less than 25% / 53.75% / 84.50% respectively. If calculated according to the revenue of 2.7 billion in 21 years, the revenue target of 22-24 years is 3.37/41.5/4.98 billion, with a year-on-year increase of 25% / 23% / 20%. The stable equity incentive goal will help to fully mobilize the enthusiasm and creativity of employees, integrate their interests more closely and organically with the long-term development of the company, attract and retain excellent talents, and realize the long-term sustainable development of the enterprise.
Some stocks come from early repurchase. The company once launched the equity incentive plan in 2017, but due to changes in the capital market environment and fluctuations in the company’s stock price, the company terminated the plan at the end of 2018 and changed to repurchase some public shares for subsequent employee stock ownership plans or equity incentive plans. Later, as the company’s share price soon exceeded the repurchase ceiling of 13.28 yuan / share, the company only completed less than 1 / 10 of the total repurchase amount. Among the shares granted this time, 1.02 million shares came from the previous special securities account for repurchase, and the remaining 1.98 million shares were issued to the incentive objects.
Since the second half of this year, due to weak demand and channel changes, the growth rate of mass consumer goods revenue has generally slowed down, and the company still maintains a high-speed growth trend, reflecting good growth. The profit side was mainly affected by the one-time government subsidy of 45 million in the third quarter of last year, and the growth rate after deducting non profits was much higher than that of profits. This year, the company further accelerated the promotion of new products. In addition to continuing to enrich the taste of weijiuzi brand, it also launched a series of products such as refreshing and meizhimei, with a higher degree of layout in the field. The double eleven Rio brand won the first place in the sales of low alcohol liquor on the whole online platform, surpassing the sum of the 2nd-10th places, with obvious competitive advantage. In October, the company’s Laizhou distillation plant was also officially put into operation, laying a solid foundation for the company’s long-term development.
Profit forecast and rating: the company maintains a stable business rhythm according to market changes. The development trend of low alcohol drinks remains unchanged, and the growth attribute of the company is prominent. We expect the company to realize a net profit attributable to the parent company of RMB 790 / 11.0 / 1.49 billion from 2021 to 2023, with a year-on-year increase of + 47% / + 40% / + 35%, EPS of RMB 1.05, 1.47 and 1.99 per share and PE of 54 / 39 / 29 respectively. For the first time, give a “buy” rating.
Risk tips: 1) the promotion of new products does not meet expectations; 2) The production capacity launch progress is lower than expected; 3) The industry competition intensifies, and the investment of sales expenses increases; 4) Food safety risks.
