Zhejiang Supcon Technology Co.Ltd(688777) (688777)
Equity incentive is good for the long-term development of the company and maintains the “buy” rating
The company is the leader of Intelligent Manufacturing in China’s process industry, benefiting from the two opportunities of improving the penetration of intelligent manufacturing and domestic substitution, and its long-term performance can be expected. We keep the profit forecast unchanged. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 545, 700 and 895 million yuan, and the EPS will be 1.10, 1.42 and 1.81 yuan / share. At present, the corresponding PE of the stock price is 70.5, 54.8 and 42.9 times, maintaining the “buy” rating.
Event: the company issued the 2021 equity incentive plan (Draft)
On December 15, the company issued the restricted stock incentive plan (Draft) for 2021, which plans to grant no more than 2993500 restricted shares to 1003 incentive objects, accounting for 0.61% of the total share capital, and the grant price is 39.50 yuan / share.
Stabilize the core team and benefit the long-term development of the company
There are 1003 incentive objects in total, Accounting for 20.55% of the total number of 4880 employees (as of November 30, 2021), including Ding Xiaobo, vice president and assistant president of the company (in charge of international business) teokimhock, chief representative of the office pan Shiwen and other senior managers and core technical backbones of the company. The assessment objective is that the growth rate of operating revenue and net profit attributable to the parent after deducting the impact of share based payment from 2022 to 2026 shall not be less than 20%, 40%, 60%, 80% and 100% respectively. We believe that the incentive plan covers a large area and is conducive to stability The core business team supports the release of the company’s long-term performance.
Intelligent manufacturing is connected to many cities, and the localization process of control system is accelerated
Since November 2021, the company has successively signed strategic cooperation framework agreements with Guizhou Donghua, zheneng group, Huayi sanaifuxin, Huiguang technology and other industry leaders. The development of customers in the field of intelligent manufacturing has made positive progress, and large-scale orders can be expected. In November, ecs-700x, a distributed control system independently developed by the company and with 100% national production, realized the operation of petrochemical units, marking the continuous enhancement of the company’s technical strength in product localization and is expected to embrace the opportunity of domestic substitution in the long term.
Risk warning: the company’s R & D is less than expected, the market competition is intensified, and the localization is less than expected
