\u3000\u3 Shengda Resources Co.Ltd(000603) 179 Jiangsu Xinquan Automotive Trim Co.Ltd(603179) )
Core view
Event: the company announced that it had completed the stock purchase of the second phase of the employee stock ownership plan.
The second phase of the ESOP stock purchase was completed on schedule, escorting the long-term and stable development of the company. The company announced on March 11 that it had completed the purchase of the underlying shares of the second phase of the employee stock ownership plan. The company has purchased 8607700 shares of the company’s shares through centralized bidding trading and block trading, with a transaction amount of about 300 million yuan (excluding transaction costs), and the average transaction price is about 34.84 yuan / share. The number of shares purchased accounts for 2.30% of the company’s total share capital, and the lock-in period is from March 12, 2022 to March 11, 2023 for 12 months. According to the company’s previous announcement, the actual number of participants in this ESOP is 496, including 11 executives and 485 other core employees. The successful completion of the employee stock ownership plan will closely integrate the interests of employees with the long-term development of the company, help the company establish and improve the long-term effective incentive and restraint mechanism, fully mobilize the enthusiasm of management and core employees, improve the cohesion and competitiveness of employees, and escort the long-term and stable development of the company.
Actively expand new energy related businesses, and the new energy vehicle business has full orders. The company closely follows the development trend of new energy vehicle industry and continuously expands the business related to new energy vehicles. In 2021, the company will realize the supporting projects of new energy models under international well-known electric vehicle enterprises, Byd Company Limited(002594) , Weilai, ideal, Geely, great wall, SAIC, GAC new energy and other brands. With the continuous development of the new energy vehicle industry, the company’s new energy vehicle business is expected to continue to obtain new orders and become an important growth point of the company’s revenue and profit.
Steadily promote the construction of China’s raised investment projects and adhere to the internationalization strategy. In 2021, the company will continue to promote the construction of Xi’an production base, Shanghai intelligent manufacturing base and Shanghai R & D center projects, which will improve the company’s production capacity and R & D innovation ability after reaching the production capacity; In order to better explore the international market and serve the company’s customers, the company has steadily promoted its internationalization strategy. In 2019, the company established a joint venture and a production base in Malaysia, a production base and a wholly-owned subsidiary in Mexico in 2020, a wholly-owned subsidiary in the United States in 2021 and increased US $30 million to the Mexican subsidiary to build a production base, The completion of the project will further strengthen the company’s competitiveness in the North American market
Profit forecast and investment suggestions
It is estimated that eps1 will be in place from 2022 to 202452, 2.07 and 2.71 yuan. According to the 22-year PE valuation and referring to the valuation of comparable companies, 30 times PE in 2022 is given, and the target price is 45.6 yuan, maintaining the buy rating.
Risk tips
The demand of passenger car industry is lower than expected, and the supporting quantity of passenger car and commercial vehicle products is lower than expected
