Goldenhome Living Co.Ltd(603180) (603180)
The company has issued an equity incentive plan and plans to grant 3 million stock options to incentive objects, accounting for 1.94% of the company’s current total shares, highlighting the company’s good plan for long-term development. The company has built a multi category channel layout. Under the catalysis of recent favorable policies, the market share is expected to continue to expand and be raised to the buy rating.
Key points supporting rating
Issue the equity incentive plan for long-term development. The equity incentive plan plans to grant 3 million stock options to incentive objects, accounting for 1.94% of the current total share capital, including 2.8278 million for the first time and 172200 reserved. The awarding objects include 124 senior managers, middle managers and core backbone of the company. The incentive plan is exercised in two times. The first exercise condition is that the net profit in 2022 will increase by no less than 20% year-on-year. The second exercise condition is that the net profit in 2023 will increase by no less than 44% year-on-year in 2021.
Incentives are continuous and demonstrate confidence in long-term development. The company’s equity incentive plan has three highlights. 1) Continuous incentive shows the company’s long-term plan: the company has launched equity incentive for three consecutive times since its listing, and implemented assessment incentive for the performance from 2018 to 2023. The first year of the previous equity incentive plan has been completed, and it is expected that the performance target probability in 2021 can be completed. We believe that the company’s continuous introduction of equity incentive reflects the company’s good planning for long-term development. 2) The incentive objects include the core backbone of each major business unit: the equity incentive objects are 124 executives and core backbone of each major business unit, reflecting the company’s attention to the development of multi category channels. 3) Small impact on amortization of incentive expenses: the company’s incentive expenses are 20.5864 million yuan in total, amortized over three years, which has little impact on the change of the company’s net profit.
The company has built a multi category channel layout and is expected to expand its share by relying on recent favorable policies. At the same time, the company has made great efforts in the “kitchen and clothing wooden door” business, and actively expanded the bulk and packaged business, forming a multi wheel drive trend. Recently, there have been frequent positive policies. We believe that policy signals such as home decoration subsidies to the countryside and a virtuous circle in the real estate industry are expected to accelerate the release of home demand from the dual dimensions of improving rigid demand and consumption capacity, and the pessimistic expectations of the market are expected to be alleviated. Driven by the catalytic superposition of favorable policies and the incentive of the company, the company, as a household leader, is expected to take advantage of the trend and expand market share.
Valuation
Under the current share capital, the expected earnings per share from 2021 to 2023 are 2.1 / 2.7 / 3.4 yuan respectively; The P / E ratio is 17 / 13 / 11 times respectively. Considering that the recent policy inflection point at the financing end of the real estate industry has promoted the bottom of the real estate industry, and the company has launched an equity incentive plan to improve the performance certainty and raised it to the buy rating.
Main risks of rating
Industry competition intensifies, new product expansion fails to meet expectations, and raw material prices fluctuate
