As an important part of the three-year action of state-owned enterprise reform, equity incentive, a market-oriented medium and long-term incentive method, has been responded by more and more listed companies controlled by central enterprises.
According to the information statistics of Shanghai Securities News, as of December 28, 27 listed companies controlled by central enterprises have implemented equity incentive plans this year, showing an accelerated trend compared with 22 in 2020.
Throughout the listed companies controlled by central enterprises that launched or implemented the equity incentive plan this year, the performance evaluation objectives are diversified, and the more stringent unlocking conditions of some companies show a strong confidence in performance growth. At the same time, the scope of incentive coverage varies. Some companies have launched “inclusive” incentive plans to lay the foundation for long-term growth.
low benchmark with high growth rate
As of December 28, 56 listed companies controlled by central enterprises have issued announcements related to equity incentive this year. Among them, 26 announced the draft equity incentive plan, another 27 announced that they had been implemented, and 3 equity incentive plans were approved by the SASAC of the State Council.
Among the listed companies controlled by central enterprises with net profit as the core assessment objective, Aluminum Corporation Of China Limited(601600) , Fiberhome Telecommunication Technologies Co.Ltd(600498) and other six companies require deduction of non parent net profit for three consecutive years, with a compound growth rate of more than 30%.
Taking Aluminum Corporation Of China Limited(601600) as an example, according to the draft equity incentive plan released by the company on December 22, based on the deduction of non attributable net profit in 2020, the compound growth rate of non attributable net profit from 2022 to 2024 shall not be less than 110%, 75% and 60% respectively. It is known that in Aluminum Corporation Of China Limited(601600) 2020, the net profit deducted from non parent company is RMB 393 million, so the corresponding net profit deducted from non parent company from 2022 to 2024 should not be less than RMB 1.733 billion, RMB 2.106 billion and RMB 2.576 billion.
The goal of deducting non parent net profit of about 2 billion yuan is just a piece of cake for Aluminum Corporation Of China Limited(601600) in the business cycle. As a holding subsidiary of Chinalco group, Aluminum Corporation Of China Limited(601600) is the largest alumina production supplier in the world. Its main products include alumina, electrolytic aluminum and carbon. Its performance fluctuates greatly and has strong periodicity. In 2021, affected by the recovery of demand and the rise of aluminum price, Aluminum Corporation Of China Limited(601600) performance ushered in an outbreak. In the first three quarters, the net profit deducted from non parent company reached 7.126 billion yuan, a year-on-year increase of more than 45 times, a new high since 2008.
Also based on the performance in 2020, Fiberhome Telecommunication Technologies Co.Ltd(600498) is another look. Fiberhome Telecommunication Technologies Co.Ltd(600498) on December 15, it was announced that the registration of granting restricted stock incentive plan in 2021 was completed. In terms of performance assessment, it is required to take the deduction of non parent net profit in 2020 as the benchmark, and the compound growth rate from 2022 to 2024 shall not be less than 43%. Affected by the epidemic situation, Fiberhome Telecommunication Technologies Co.Ltd(600498) the net profit deducted from non parent company in 2020 is only 62 million yuan, less than one tenth of that in 2019.
high requirements show sufficient confidence
Unlike some companies that choose a lower performance benchmark year when launching equity incentive plans, China Railway Group Limited(601390) chooses a high performance benchmark year and a high target growth rate.
It was announced on December 14 that its restricted stock incentive plan was approved by the SASAC of the State Council. Reviewing the draft incentive plan, the assessment objectives are as follows: the non weighted average return on net assets deducted from 2022 to 2024 shall not be less than 10.50%, 11.00% and 11.50% respectively, and shall not be lower than the average performance level of the same industry or the 75th percentile level of the benchmarking enterprise every year; Based on 2020, the average annual compound growth rate of net profit deducted from non parent company from 2022 to 2024 shall not be less than 12%, and shall not be lower than the average performance level of the same industry or the 75th percentile level of benchmarking enterprises every year; From 2022 to 2024, the economic added value assessment objectives of the SASAC of the State Council for the current year will be completed.
In 2020, China Railway Group Limited(601390) realized a net profit of RMB 21.836 billion, a new high since listing, and the non weighted average return on net assets was 10.17%.
Everbright Securities Company Limited(601788) said that the assessment target of China Railway Group Limited(601390) was based on 2020, and the assessment target deducting the non weighted average return on net assets increased marginally year by year, reflecting the company’s confidence in development and performance growth.
China Railway Group Limited(601390) is a super large enterprise group integrating survey and design, construction and installation, industrial manufacturing, real estate development, resources and minerals, financial investment and other businesses, mainly engaged in infrastructure construction. In the first three quarters of this year, the company achieved a revenue of 767.9 billion yuan, a year-on-year increase of 11.86%; The net profit was 20.6 billion yuan, a year-on-year increase of 13.07%. In addition to infrastructure business, the company’s mineral resources, such as copper, cobalt and molybdenum, are abundant and profitable.
Guodian Nanjing Automation Co.Ltd(600268) also chose a high performance benchmark year and a high target growth rate. Guodian Nanjing Automation Co.Ltd(600268) according to the draft restricted stock incentive plan released on the evening of December 28, the assessment objectives are required to take the performance of 2020 as the base year, the compound growth rate of net profit attributable to the parent company from 2022 to 2024 shall not be less than 20%, the return on assets and cash shall not be less than 16%, 16.8% and 17.5% respectively, and the above two indicators shall not be lower than the 75th percentile of the benchmark enterprise.
The courage to formulate such assessment conditions comes from the confidence of the company’s rapid growth in recent years. Guodian Nanjing Automation Co.Ltd(600268) mainly engaged in power grid protection and automation products is a leading enterprise in the smart grid sector, and power grid transformation, as an important part of new infrastructure, is the focus of national policies. Guodian Nanjing Automation Co.Ltd(600268) in the first three quarters of this year, the revenue reached 35.649 billion yuan, a year-on-year increase of 29.11%; The net profit was 90.2496 million yuan, a significant year-on-year turnaround.
inclusive adds impetus to high growth
On the evening of December 24, power semiconductor leader China Resources Microelectronics Limited(688396) launched its first equity incentive plan since its listing. According to the draft incentive plan, the company plans to grant no more than 15069800 shares to 1300 employees, accounting for about 1.14% of the total share capital of the company at the time of the announcement of the draft. The grant price is 34.1 yuan / share.
In terms of performance assessment, the compound growth rate of net profit attributable to parent enterprises from 2022 to 2024 compared with the average net profit attributable to parent enterprises from 2018 to 2020 is required to be no less than 25%, 26% and 27% respectively, and no less than the 50th percentile of benchmarking enterprises or industry average.
Benefiting from the high prospect of the chip industry, China Resources Microelectronics Limited(688396) the performance has increased rapidly since 2019, the net profit attributable to the parent company in 2020 has doubled compared with 2019, and the high growth momentum in 2021 is still strong. Although the compound growth rate of parent net profit required by the performance appraisal is relatively stable, the greater highlight lies in the inclusive nature of the stock grant.
The objects of this grant include the company’s directors and senior executives, core management, technical and operating personnel, etc. Directors and senior executives only accounted for 2.164% of the granted shares, and the backbone of technology R & D accounted for 50.284%, indicating that the company attaches great importance to technology R & D personnel.
(Shanghai Securities News)
