\u3000\u3 China Vanke Co.Ltd(000002) 126 Zhejiang Yinlun Machinery Co.Ltd(002126) )
Event:
On March 9, the company issued the stock option incentive plan (Draft). The company plans to encourage 388 directors and senior managers with stock options. The total number of stock options to be granted is 51.3 million, accounting for 6.48% of the total share capital. In this regard, our comments are as follows:
Key investment points:
The double-layer assessment of incentive revenue and profit shows the company's confidence in future development: the incentive objects of stock options include 388 directors and senior managers, and the number of stock options to be granted is 51.3 million, accounting for 6.48% of the total share capital. Based on the double-layer performance indicators of revenue (with a weight of 45%) and net profit attributable to parent company (with a weight of 55%), the performance assessment objectives require that the operating revenue from 2022 to 2025 shall not be less than 9 billion yuan, 10.8 billion yuan, 13 billion yuan and 15 billion yuan respectively, the net profit attributable to parent company shall not be less than 400 million yuan, 540 million yuan, 780 million yuan and 1.05 billion yuan respectively, and the exercise price shall be 1.014 billion yuan. This stock option incentive plan focuses on the substantial improvement of the company's profitability, binds the interests of core employees with the company's long-term development, and demonstrates the company's confidence in the future long-term development.
The thermal management of new energy vehicles has developed rapidly and the internationalization process is good: the company has laid out the thermal management field of new energy vehicles earlier, and its products include front-end cooling module, refrigerant coolant integration module, heat pump air conditioning system, battery cooling board, etc., which are affected by the rapid development of global new energy vehicles and the benchmark vehicle enterprises of new energy in North America, Xiaopeng, Weilai, Geely It is expected that the new energy supporting projects of Jiangling Automobile Co., Ltd. will drive the rapid development of new energy management. In addition, the company is firmly committed to the internationalization strategy. The company has successively set up production and technical service platforms in Europe and North America. Last October, the company plans to invest 270 million yuan in the construction of Mexico production base, which mainly produces electric vehicle thermal management modules and oil cooler products for strategic customers in North America. The average annual contribution revenue is expected to reach 422 million yuan. With the good progress of internationalization, it is expected that the company's global competitive advantage is expected to be further strengthened.
Profit forecast and investment suggestion: we estimate that the net profit attributable to the parent company from 2021 to 2023 will be 320 million yuan, 420 million yuan and 570 million yuan respectively, and EPS will be 0.40 yuan, 0.53 yuan and 0.71 yuan respectively. Combined with the closing price on March 9, 2022, the corresponding PE will be 22.6 times, 17.1 times and 12.8 times respectively. Considering the positive role of stock option incentive and the rapid development of new energy vehicle heat management, Upgrade to "buy" rating.
Risk factors: the expansion of new energy vehicle heat management business is less than expected, the progress of globalization is less than expected, the development of traditional business is less than expected, and the development of tail gas business is less than expected.
