Autel Intelligent Technology Corp.Ltd(688208) (688208)
Event: the company plans to implement the restricted stock incentive plan for 2021. The incentive objects are 216 senior managers, core technicians and technical business backbones of the company. The number of restricted shares to be granted is 6.2 million, accounting for 1.38% of the current total share capital, of which 5.963 million shares are granted for the first time at a price of 52 yuan per share. In addition, the company also released the “daotong new energy venture partner plan” to establish a mechanism for the transformation of core employees from professional managers to partners, so as to further stimulate the innovation and entrepreneurship passion of core employees.
Core view
Wide incentive coverage and high standard assessment objectives highlight the company’s confidence in future growth. The number of objects of the new incentive plan reaches 216, It accounts for 9.06% of the total number of employees of the company (the total number of employees of the company is 2383 as of September 30, 2021). In terms of performance assessment in the next three years, when the operating revenue or gross profit in 22-24 years increases by 50%, 12% and 238% respectively compared with that in 21 years (compound annual growth rate of 50%), unlock 100%, and when the operating revenue or gross profit in 22-24 years increases by 30%, 69% and 120% respectively compared with that in 21 years (annual compound growth rate of 30%), unlock 50%. The company’s high standard assessment objectives not only promote the production vitality of employees, but also reflect the company’s optimistic expectations for future growth.
The competitiveness of the company’s products has been continuously enhanced. The company started with comprehensive automotive diagnostic products. Last year, the company released ultra and other high-end products to complete the product line. In addition, the company has made the software upgrade service of core products online through cloud, and launched new cloud services such as fault guidance, so as to create a more efficient productivity tool for the comprehensive diagnostic instrument.
The business boundary has been continuously widened. The company timely grasped the new pain points generated by users in the trend of automobile intellectualization and electrification, and targeted expanded its product line and business boundary. For example, the company took the lead in launching its ADAS calibration products. At the same time, under the trend of electrification, the company released the new energy strategy, launched the digital integrated solution of “diagnosis, charging and storage”, and continuously opened the growth ceiling.
Financial forecast and investment suggestions
After slightly adjusting the company’s revenue growth rate, gross profit margin and expense rate, we predict that the company’s EPS in 21-23 years will be 1.06, 1.56 and 2.19 yuan respectively (originally predicted to be 1.06, 1.76 and 2.44 yuan). According to the 22-year PE level of comparable companies, the corresponding 22-year PE is 70 times, and the target price is 109.20 yuan, maintaining the buy rating.
Risk statement
Risk that R & D progress is not as expected; Risk of deterioration of competition in the industry; The promotion of new energy strategy is less than expected
