\u3000\u3 Shengda Resources Co.Ltd(000603) 456 Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) )
Event: on March 2, the company issued the stock incentive plan (Draft), which plans to grant 1.845 million shares to 297 employees, accounting for about 0.22% of the total share capital, and the grant price is 23.82 yuan / share.
Bind the core team and increase team cohesion. This stock incentive plan is intended to grant 6 senior executives such as Mei Yijiang, Wang Bin, Li yuanqiang and Yang Nonggang, as well as 291 middle managers and core technical backbones, all of whom are important members of the company. Sufficient incentive mechanism can effectively enhance team cohesion, retain excellent talents for a long time and enhance the company’s industry competitiveness. In terms of expenses, the company expects to amortize 43.51 million yuan of incentive expenses, and 1885 / 1668 / 653 / 1450000 yuan from 2022 to 2025 respectively.
Set the college entrance examination nuclear standards and release the performance continuously and stably. The assessment period of this incentive plan is set as 20222024. Based on the net profit in 2020, the net profit growth rate in 20222024 is required to be no less than 115%, 180% and 260% respectively. The corresponding net profit in 20222024 is 818 million yuan, 1066 million yuan and 1370 million yuan respectively. Based on the median performance forecast of the company in 2021, the net profit growth rate in 20222024 is 26.5%, 30.2% and 28.6% respectively. The high growth target set by the company, on the one hand, proves the company’s confidence in operation and performance, on the other hand, further binds the company’s core team and lays a solid foundation for rapid performance growth.
Cdmo orders are full, and the capacity matches the orders with rapid growth. As of 2021h1, among the cdmo projects undertaken by the company, 18 have been listed, 41 are in phase III clinical trials and 471 are in phase I and phase II clinical trials, reflecting the company’s cdmo business strength. In terms of high activity API production lines, the company has a number of oeb4 and oeb5 production lines and R & D facilities, and has undertaken R & D and production services of a number of high activity drugs. The all-round advanced production capacity layout provides sufficient guarantee for the company’s expansion in the field of cdmo.
Profit forecast and investment rating: Based on the remarkable results of the company’s transformation to cdmo business and the steady progress of various business lines, we raised the forecast of the company’s net profit attributable to the parent company from RMB 654 / 835 / 1080 million to RMB 650 / 870 / 1154 million in 20212023, with a year-on-year growth rate of 70.7%, 33.9% and 32.7% respectively; The current market value corresponds to 61 / 45 / 34 times of PE from 2021 to 2023, maintaining the “buy” rating.
Risk tip: the increased competition leads to the decline of profitability, the insufficient volume of novozyme is less than expected, and the risk of exchange gain and loss.
