Zhejiang Supcon Technology Co.Ltd(688777) (688777)
event:
The company issued the 2021 restricted stock incentive plan (Draft) on the evening of December 15, 2021.
comment:
The company plans to provide equity incentives to senior executives and core backbone, and put forward assessment requirements for income and performance
According to the draft, the company plans to grant 2993500 restricted shares to incentive objects, accounting for 0.61% of the total share capital of the company. There are 1003 incentive objects, accounting for about 20.55% of the total number of the company, including senior managers and core backbone employees of the company. The grant price of this equity incentive is 39.50 yuan / share, and the assessment period is from 2022 to 2026. The performance assessment objectives of each year are as follows: with 2021 as the base period, the growth rate of operating revenue and net profit shall not be less than 20%, 40%, 60%, 80% and 100%. In addition to the performance appraisal at the company level, the company also sets up a performance appraisal system for individuals to determine the actual number of shares according to the achievement rate of strategic objectives and performance appraisal results of incentive objects.
Equity incentive is expected to effectively improve employees’ enthusiasm and promote long-term operation
Based on the closing price on December 15, assuming that the grant is completed in early January 2022, the amortization amount of incentive cost from 2022 to 2026 is 550869, 3172.56, 1979.65, 115624 and 5244600 yuan respectively. The amortization of equity incentive expenses will have a certain impact on the company’s performance in the future. However, after the implementation of incentive, it will further improve the cohesion of employees and team stability, and effectively stimulate the enthusiasm of the management team, so as to improve business efficiency, reduce agent costs, and actively promote the long-term improvement of the company’s business performance and internal value.
Release a new generation of intelligent control system, DCS breaks through the global chemical giant BASF
In early November, at the 2021 China International Petrochemical conference, the company officially released a new generation of intelligent control system dcs4 0, it can realize the cooperation between control application and production management, deterministic real-time control and simulation prediction, escort production and create customer success. DCS4. 0 decouples the conventional mode of the original “HMI DCS controller communication module standard IO module”, supports diversified data acquisition and multi application integration. Recently, the kick-off meeting of the company’s first cooperation with BASF in the field of control system was successfully held in Hangzhou. The project is subordinate to BASF Care Chemicals (Shanghai) Co., Ltd. with the establishment of the project teams of both parties, the project has successfully entered the design and construction stage, and is the first DCS landing project of production plant.
Investment advice and profit forecast
The company is committed to meeting the needs of “industry 3.0 + industry 4.0” of process industry enterprises. Through years of development, the company has grown into an overall solution provider of intelligent manufacturing, and there is a broad growth space in the future. It is predicted that the operating revenue of the company from 2021 to 2023 will be RMB 4091, 5033 and 5985 million, the net profit attributable to the parent company is predicted to be RMB 544, 677 and 815 million, and the EPS will be RMB 111, 1.38 and 1.66/share, corresponding to 70.15, 56.41 and 46.86 times of PE. At present, the company is in the stage of rapid development, with more market opportunities and more investment in R & D and market expenses. Therefore, the net profit margin is low, and the PS valuation method is more appropriate. Since listing, the company’s PS has mainly operated in the range of 10-20 times, maintaining the company’s target PS of 11 times in 2022, with the corresponding target price of 111.40 yuan. Maintain the “buy” rating.
Risk statement
Covid-19 recurrent pneumonia; The promotion of industry 4.0 business is less than expected; Core parts supply risk; Demand fluctuation of downstream industries such as chemical, petrochemical and pharmaceutical industries; DCS R & D and promotion are not as expected.
