Zhejiang Supor Co.Ltd(002032) (002032)
Event: the company issued a restricted stock incentive plan and planned to grant 1209500 restricted shares, accounting for about 0.15% of the total share capital of the company. The restricted stock plan is unlocked in two phases, and the performance assessment requires that the growth rate of net profit attributable to the parent company from 2022 to 2023 shall not be less than 5%. From the perspective of incentive objects, there are 293 incentive objects, including general manager Zhang Guohua, chief financial officer Xu Bo, deputy general manager and Secretary Ye Jide, as well as core management and technical personnel, accounting for 5% / 3.7% / 1.6% / 89.7% of the incentive shares respectively.
The assessment mechanism is refined to fully boost the enthusiasm of employees. In terms of unlocking conditions, compared with the incentive schemes in 2013 and 2017, the company’s performance assessment requirements continue the previous stable style. The 5% incentive target is not the company’s performance guidance, but more the bottom line target of the company’s growth. From the detailed rules of the assessment, the assessment of the incentive scheme is more subdivided. It not only requires the overall performance appraisal, but also requires the business unit and individual level to complete the corresponding appraisal indicators. We believe that refining the assessment to the division level is more conducive to the company’s promotion of category diversification, especially the development of the sanitation, home and kitchen division. The promotion of category diversification strategy has enhanced the driving force of the company’s long-term development. In terms of incentive objects, compared with the previous incentive scheme, the employees covered this time are more extensive, including 293 middle and senior managers and core technicians of the general manager, chief financial officer and deputy general manager. We believe that the incentive scheme covers a wider range and is more conducive to the stability of the company’s core management team.
Effective channel adjustment and good operation. After 1-2 years of adjustment, the company’s online channel operation has achieved remarkable results. On the one hand, the company has gradually improved its online layout, promoted the transformation from official flag to self operation and dealers, optimized its online operation efficiency, and its online operation performance is better than that of the whole industry; On the other hand, the company continued to promote the diversification of categories, and steadily launched new products such as cleaning appliances and kitchen power, which is expected to provide new increment for the company’s revenue. As the leader of traditional small household appliances, the company diversified its categories, opened up new revenue growth points, upgraded its channels, optimized its operating efficiency, and looked forward to better business performance in the future.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2023 will be 2.85/3.21 yuan respectively. Considering that the company, as a leading enterprise of small household appliances, has perfect channels and continuously rich product lines. With the steady recovery of consumption outside China, the operation is expected to improve and maintain the “hold” rating.
Risk warning: raw material price or large fluctuation risk, market demand is less than expected risk.
