Luzhou Laojiao Co.Ltd(000568) (000568)
event:
On December 29, the company issued a proposal to determine the granting date of restricted shares as December 29, 2021. 6928600 restricted shares were granted to 441 incentive objects for the first time, and the equity incentive was officially implemented. Key investment points:
The equity incentive was promoted smoothly, and the first grant reflected significant progress
On September 27, the company issued the equity incentive plan, which was approved by Luzhou SASAC on December 2. The grant price of the restricted stock incentive plan is 92.71 yuan / share, about 37% of the previous closing price of 254 yuan / share; The number of restricted shares to be granted shall not exceed 8.83 million, accounting for about 0.6031% of the share capital; No more than 521 incentive objects. The first restricted stock grant date is December 29, 2021, and 6.9286 million restricted shares are granted to 441 incentive objects, accounting for about 0.473% of the current total share capital of the company.
It covers a wide range, and the pressure and motivation of assessment objectives coexist, which is conducive to the establishment of a long-term incentive mechanism
This stock incentive covers a wide range and covers a large number of managers and technical backbones. In addition, from the perspective of assessment objectives, there are three assessment conditions for unlocking this time: the non weighted roe deducted in 21-23 years is not less than 22%, and not less than the 75th percentile of the benchmarking enterprise; The growth rate of non net profit deducted in 21-23 years shall not be lower than the 75th percentile of the benchmarking enterprise; The proportion of costs and expenses in operating revenue in 21-23 years shall not be higher than 65%. The non weighted roe deducted by the company for 18-20 years is 21.8%, 25.3% and 28.2%; The net interest rate is 27%, 29% and 36%. In contrast, the overall assessment objectives meet expectations, and the coexistence of pressure and motivation is conducive to the establishment of a long-term incentive mechanism.
Optimistic about the performance improvement expectations brought by the promotion of the company’s reform, and maintain the “buy” rating
As a high-end Baijiu, the company benefits from the expansion of the five demand of the industry, and at the same time, it will make efforts to brand building and contribute to the performance elasticity. Under the channel reform, price increase of some products and structural upgrading, the performance is expected to exceed expectations. Maintain the company’s EPS forecast of 5.19, 6.47 and 8.09 yuan in 2021-23, corresponding to 40, 32 and 25 times of PE. Considering the performance improvement expectation brought by the gradual promotion of the company’s reform, the company is given a valuation of 45 times in 2022, corresponding to the target price of 289 yuan, maintaining the “buy” rating.
Risk statement
The nationwide expansion is less than expected, and the product and channel reform is less than expected
