\u3000\u3 China Vanke Co.Ltd(000002) 439 Venustech Group Inc(002439) )
Event:
Venustech Group Inc(002439) issued the 2022 equity incentive plan (Draft), which plans to grant 28 million restricted shares to 1110 incentive objects, accounting for 3% of the total share capital, and the grant price is 12.24 yuan.
Comments:
This equity incentive is the fourth time since the listing of the company to offer shares to employees for incentive, while the first three times are employee stock ownership plans (published in 2015, 2016 and 2020 respectively). Strictly speaking, this equity incentive plan is the first restricted stock incentive plan after the listing of the company, whether in terms of incentive mode, incentive scope There is a big breakthrough in the incentive and assessment objectives compared with the previous ESOP, showing the strong confidence of the management in the future development of the company. At the same time, the interest binding between employees and the company is further deepened, which is conducive to boosting morale and boosting employee morale.
1. From the perspective of incentive methods, the restricted stock incentive plan is the first type of restricted stock, which requires employees to actually invest in the purchase, which essentially increases the holding cost of employees and enhances the incentive effect. Compared with the previous three employee stock ownership plans, we believe that the stock incentive plan not only increases the holding cost of the company’s employees, but also further amplifies the potential benefits brought by the company’s performance growth, which is expected to bring a stronger incentive effect.
2. From the perspective of incentive scope, the number of employees involved in the incentive plan accounts for about 18% of the total number of the company, and the number of shares involved accounts for 3% of the total share capital of the company, which is significantly expanded compared with the third employee stock ownership plan. The number of employees involved in the third phase of the company’s employee stock ownership plan was only 245, accounting for 4.6% of the total number of employees in that year, and the scale of shares involved accounted for 0.44% of the total share capital at that time. We believe that, in comparison, the scope of this incentive is significantly expanded, which reflects the company’s attention to the existing management team and core backbone personnel, and lays a solid talent foundation for the performance sprint.
3. From the perspective of performance assessment objectives, the performance assessment objectives of the incentive plan are set at a high level, jumping out of the comfort zone to show the company’s determination and confidence to overcome the difficulties. The performance assessment target of the incentive plan is based on the income or net profit in 2021, and the income or net profit will increase by 20% / 45% / 70% or 25% / 55% / 85% respectively from 2022 to 2024. In terms of valuation, taking the company’s latest market value of 23.3 billion as a reference, the corresponding current price PE of the company’s net profit incentive target from 2022 to 2024 is 21 / 17 / 14 times respectively, which is at the bottom of the company’s historical peband
Investment suggestion: Based on the performance forecast of 2021 and the performance assessment target of equity incentive issued by the company, we adjusted the previous profit forecast. It is estimated that the operating revenue of the company from 2021 to 2023 will be 4.438/55.48/6.824 billion yuan (the original forecast is 4.704/58.80/7.35 billion yuan), and the net profit attributable to the parent company from 2021 to 2023 will be 885/11.091384 million yuan (the original forecast is 9.87/12.21/1.515 billion yuan), Maintain the “buy” rating.
Risk warning: repeated outbreaks lead to business performance falling short of expectations; Major changes in industrial policies; Market competition intensifies risks; The draft has yet to be deliberated and approved by the general meeting of shareholders of the company
