\u3000\u3 Shengda Resources Co.Ltd(000603) 456 Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) )
Events. The company announced the 2022 equity incentive plan (Draft).
\u3000\u30001. Quantity: 1845000 shares, accounting for about 0.2216% of the company’s share capital at the time of announcement of the draft incentive plan.
\u3000\u30002. Grant price: 23.82 yuan / share.
\u3000\u30003. Number of persons granted: the total number is 297, including directors, senior managers, middle managers and core backbone of the company.
\u3000\u30004. Lock up period: if the incentive objects are directors and senior managers of the company, the shares they transfer each year during their tenure shall not exceed 25% of the total shares they hold, and they shall not transfer their shares within half a year after their resignation; Sell the stocks it holds within 6 months after buying, or buy them again within 6 months after selling, and the income from this shall belong to the company.
\u3000\u30005. Assessment requirements: Based on the deduction of non net profit in 2020, the growth rate of deduction of non net profit from 2022 to 2024 shall not be less than 115% / 180% / 260%.
\u3000\u30006. Amortization of incentive expenses: the total expenses to be amortized are about 435051 million yuan, and it is estimated that 188522166770/652.5814502 million yuan will be amortized respectively from 2022 to 2025.
Comments: the normalization of equity incentive plan is promoted, and the minimum growth rate is expected. The probability will continue to exceed the expected growth.
\u3000\u30001. The normalization of equity incentive plan is conducive to long-term development. The incentive plan includes 297 directors, senior executives, middle managers and core backbone of the company, further improve the company’s long-term incentive and restraint mechanism, attract and retain excellent talents and fully mobilize enthusiasm. The company has launched the equity incentive plan for three consecutive years to promote the normalization of the equity incentive plan, which is conducive to the long-term development of the company.
\u3000\u30002. Equity incentive provides a minimum growth expectation, and the probability will continue to grow faster than expected. The non net profit deducted by the company in 2020 is 322 million yuan. According to the requirements of equity incentive assessment, the minimum net profit of the company from 2022 to 2024 is 692 million yuan / 902 million yuan / 1159 million yuan respectively, with a compound increase of about 30%. We believe that the equity incentive assessment requirements are the minimum expectation of the company’s performance, mainly to retain the core backbone, and the actual growth rate will continue to exceed the expected growth.
Profit forecast and valuation. It is estimated that the company’s operating revenue from 2021 to 2023 will be 3.613 billion yuan, 4.777 billion yuan and 6.197 billion yuan respectively, with corresponding growth rates of 36.5%, 32.2% and 29.7% respectively; The net profit attributable to the parent company was 651 million yuan, 903 million yuan and 1.206 billion yuan respectively, with corresponding growth rates of 71.2%, 38.6% and 33.6% respectively, and corresponding PE of 61x, 44x and 33x respectively. Maintain the “buy” rating.
Risk warning: price fluctuation risk of API; The product volume of Novartis is lower than the expected risk; The company’s new project promotion is less than the expected risk.
