Autel Intelligent Technology Corp.Ltd(688208) (688208)
Event: December 16, The company issued the restricted stock incentive plan (Draft) for 2021, which is intended to be distributed to the company’s senior managers, core technicians and technicians A total of 216 subjects, including (business) backbones, were granted 6.2 million restricted shares, accounting for 1.38% of the company’s total share capital. The grant price of equity incentive was 52.00 yuan, 67% of the latest closing price. In the next three years, 30%, 40% and 40% were unlocked respectively. Among them, the attribution condition of the highest level was that based on the operating revenue or gross profit in 2021, the growth rate of the company’s revenue or gross profit from 2022 to 2024 was not less than 50% 、125%、238%。 In addition, the company announced the introduction of venture partner shareholding platform for its subsidiaries and innovative energy, and the employee shareholding ratio reached 40%. The two measures fully bind the interests of core employees, inject a booster into the market and strengthen the company’s confidence in vigorously developing new energy business.
The release of high standard equity incentive has stabilized the core team and consolidated development confidence. From the perspective of incentive objects, this equity incentive covers a total of 240 objects, including senior managers, core technicians and technical business backbones, which have a great impact on the company’s business performance and future development. The number is increased compared with the equity incentive plan in 2020, further expanding the coverage of incentive objects and playing a positive role in stabilizing core employees, It is conducive to the long-term development of the company. In terms of attribution conditions, since the probability of completing the assessment index of Grade A of equity incentive in 2020 is extremely low, this equity incentive will be divided into two levels of assessment objectives based on the revenue or gross profit in 2021. Grade A and grade B + respectively correspond to the compound growth rate of revenue or gross profit from 2022 to 2024, which shall not be less than 50% and 30% respectively. Combined with our revenue forecast for the company in 2021, the company’s revenue targets for 2022-2024 are 3.46 billion yuan, 5.18 billion yuan and 7.79 billion yuan, which re mobilize the enthusiasm of employees to sprint for higher goals and demonstrate the company’s good confidence in future development.
Introduce the shareholding platform of venture partners and add weight to the new energy business. On the same day, the company announced that it agreed to increase the capital of its subsidiary innovation energy and introduce the venture partner shareholding platform. The venture partner shareholding platform increased the capital of innovation energy with a total cash of 29.2 million yuan and obtained 40% of its equity. The scope of staff participating in the partner plan mainly includes the company’s directors, executives Core employees and core technical business backbone of new energy business. We believe that the company’s new energy business is in a critical period of start-up and development. The introduction of ESOP platform is an important measure to add weight to the company’s new energy business. It is expected to fully stimulate the entrepreneurial spirit and innovation power of core employees and establish a value distribution system of CO creation, sharing and sharing, which is conducive to the rapid expansion of business and the promotion and Realization of the company’s long-term strategy.
New energy products have been mass produced one after another, and the second curve has been expanded smoothly. Aiming at the core pain points of new energy vehicles such as “poor vehicle repair timeliness and difficult charging and installation compatibility”, combined with the needs of third-party maintenance stores and consumers, in September 2021, the company officially released the new energy “diagnosis, inspection, charging and storage” digital integrated solution, mainly including full matrix new energy inspection system tool chain and intelligent charging pile products. The core of the product is still the advantage extension of the testing technology and compatible technology accumulated by the company for many years. The AC charging pile has been shipped and delivered in Q4, and the high-power DC charging pile and new energy maintenance tool chain will be mass produced successively in 2022, superimposed with the strong demand in the overseas market and the company’s rich downstream channel resources, which is expected to be put into mass production quickly in the future.
Profit forecast and investment suggestions. Considering the firm overweight new energy strategy and sufficient equity incentive of the company, it is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 490 million yuan, 760 million yuan and 1.18 billion yuan respectively. Although 2021 is greatly disturbed by expenses, in the long run, the company’s growth logic has not been weakened, the original products are still highly competitive, new energy products are expected to be produced in large quantities quickly, and the profits have large flexible release space. We are optimistic about the company for a long time and maintain the “buy” rating.
Risk warning: risk of deterioration of international trade situation; Exchange rate fluctuation risk; Rising prices of raw materials; The R & D and expansion of new products are less than expected, and the industry competition is intensified.
