\u3000\u3 China Vanke Co.Ltd(000002) 126 Zhejiang Yinlun Machinery Co.Ltd(002126) )
The company launched a stock option incentive plan and plans to grant 51.3 million stock options to incentive objects
On March 9, 2022, Zhejiang Yinlun Machinery Co.Ltd(002126) launched the draft stock option incentive plan, which plans to grant 51.3 million stock options to incentive objects (including 49.78 million for the first time and 1.52 million reserved), accounting for 6.48% of the total share capital of 792 million shares of the company, and the exercise price is 10.14 yuan / share. The total number of incentive objects of this equity incentive plan is 388, including directors, senior managers, core backbone employees, etc. The equity incentive plan includes four exercise periods from 2022 to 2025. The net profit attributable to the parent company and operating income are set as the assessment indicators. The exercise conditions are as follows: (1) the net profit attributable to the parent company in 2022 to 2025 shall not be less than RMB 4.0/5.4/7.8/1.05 billion respectively; (2) From 2022 to 2025, the company’s revenue shall not be less than 9 / 108 / 130 / 15 billion yuan respectively. Equity incentive binds the incentive object and the interests of the company, which is convenient for the company to carry out comprehensive management optimization reform. Considering the sharp rise in the price of raw materials, the rise in sea freight and other factors, we lowered the company’s profit forecast for 20212023, and estimated that the net profit attributable to the parent company in 20212023 will be 240 (- 1.1) / 4.2 (- 1.4) / 550 (- 100) million yuan respectively, EPS is 0.31 (- 0.13) / 0.53 (- 0.17) / 0.70 (- 0.12) yuan / share. The current share price corresponds to 29.7/17.3/13.1 times of PE from 2021 to 2023. The accelerated volume of the company’s new energy and industrial heat exchange business has brought high growth and maintained the “buy” rating.
Management optimization + new energy vehicle enterprise customer new projects continue to increase in volume, and the company is expected to welcome both volume and profit
According to the assessment indicators of net profit attributable to parent company and operating income set in the company’s equity incentive plan, the growth rate of net profit attributable to parent company from 2023 to 2025 is 35% / 44% / 35% respectively, and the growth rate of revenue is 20% / 20% / 15% respectively. The growth rate of net profit is much higher than that of revenue, which shows the determination and confidence of the company to optimize management in an all-round way and focus on profit assessment objectives. In recent years, the company has focused on the assessment of revenue and share. The performance level shows that increasing revenue does not increase profit. With the change of assessment objectives and management optimization, the profitability of the company is expected to be improved. In addition, the company has successively obtained the air conditioning box project of North American new energy benchmark car enterprises, Xiaopeng automobile refrigerant coolant integration module project, Weilai front-end module and refrigerant coolant integration module project, etc. the industrial heat exchange business is also accelerating customer expansion. The continuous supply of fixed-point projects supports the rapid growth of the company’s new energy heat management / industrial heat exchange business, The company is expected to usher in a new round of high growth cycle with both volume and profit.
Risk tip: the demand for automobiles at home and abroad is less than expected, the price of raw materials fluctuates sharply, and the development of new projects is less than expected.
