China Resources Microelectronics Limited(688396) (688396)
event:
On December 24, 2021, the company issued the draft stock incentive plan, which plans to grant no more than 15069800 shares to 1300 employees, accounting for about 1.14% of the company’s total share capital of 1.32 billion shares at the time of announcement of the draft plan. Among them, the shares granted for the first time accounted for 80% and the reserved shares accounted for 20%. The grant price of restricted shares granted for the first time is 34.10 yuan / share.
comment:
Equity incentive binds the core backbone to attract and motivate excellent talents
In order to consolidate and maintain the leading position of the company’s products and technologies, it is necessary to retain existing talents through equity incentive and attract external talents. This equity incentive is granted to 1300 people, accounting for 12.10% of the total number of employees of the company, including 6 senior managers, 12 core technicians, 875 technology R & D backbones and 407 other backbones. The performance assessment objective requires that the compound growth rate of the net profit attributable to the parent company from 2022 to 2024 compared with the average net profit attributable to the parent company from 2018 to 2020 shall not be less than 25% / 26% / 27% respectively, and not less than the 50th percentile of the benchmarking enterprise or the industry average.
New sicmosfet was launched, and the performance of cutting-edge power products continued to grow
Power device is the core of power conversion and switching control in electronic system, and the company’s cutting-edge products continue to achieve breakthroughs. On December 17, following the launch of SiC diode products, the company announced the launch of 1200vsicmosfet, which is mainly used in the fields of new energy vehicle OBC, charging pile, industrial power supply, photovoltaic inverter, wind power generation and so on. Compared with the same period last year, the company’s IGBT business grew by more than 70%, and it is expected to grow significantly in 2022.
Earnings forecast, valuation and rating
It is estimated that the company’s operating revenue in 2021-23 will be 92.12/107.13/12.56 billion yuan respectively, and the net profit attributable to the parent company will be 20.11/23.52/2.761 billion yuan respectively, corresponding to 41 / 35 / 30 times of PE. Considering the company’s advantageous position in the power semiconductor field, 50 times of PE will be given, the target price will be 76.17 yuan, and the “buy” rating will be given.
Risk statement
Risks such as lower than expected downstream demand and lower than expected capacity expansion.
