\u3000\u3 China Vanke Co.Ltd(000002) 156 Tongfu Microelectronics Co.Ltd(002156) )
Key investment points
Event overview:
The company issued the announcement of equity incentive plan: it plans to grant 11.2 million stock options to incentive objects, accounting for 0.84% of the total share capital of the company on the announcement date. The incentive objects are the company’s directors (excluding independent directors), senior executives, core technical / business personnel, etc., with a total number of no more than 870, including 5 directors (excluding independent directors) and senior executives. The exercise price of stock options granted by the incentive plan is 17.85 yuan / share. The exercise assessment year is two fiscal years from 2022 to 2023.
Equity incentive shows the company’s confidence in development
1) assessment method: when the growth rate of revenue in 22 years is between 76.04% and 83.38% compared with that in 20 years (corresponding to the revenue range of 19-19.7 billion yuan), the exercise proportion is 80%. If the growth rate is higher than or equal to 83.38%, the exercise proportion is 100%, and if it is lower than 76.04%, the exercise proportion is 0; The increase of 80% exercise proportion triggered in 23 years was 112.72% higher than that in 20 years (corresponding to revenue of 22.9 billion yuan), and the increase of 100% exercise was 120.06% (corresponding to revenue of 23.7 billion yuan). 2) Amortization expenses: according to the closing price of 17.42 yuan / share on March 11, the expenses to be amortized in 22-24 years are 2210 / 1518 / 2150000 yuan respectively. 3) Wide range of incentive objects: among the 870 incentive objects, there are 5 directors and senior executives, and the proportion of granted rights in the plan is 2.5%. The remaining 97.5% is granted to the company’s core technical / business personnel and 865 employees who have a direct impact on performance and future development. 4) Timely launch the incentive plan to demonstrate the company’s confidence in development: according to the company’s performance express, in 2021, the company achieved revenue of 15.8 billion yuan, yoy + 47%, net profit attributable to the parent company of 950 million yuan, yoy + 182%, all of which achieved high growth; The launch of the stock option incentive plan in March 2022 will help stimulate the enthusiasm of employees and further demonstrate the company’s confidence in future development.
Amd22 is expected to increase rapidly and the capacity of high-quality customers will continue to expand
The company adopts the mode of “joint venture + cooperation” with AMD, and nearly 50% of its revenue will come from AMD in 2020. AMD’s latest financial report exceeded expectations, and its 21q4 achieved a revenue of $4.8 billion, exceeding the market expectation of $4.5 billion. Its 22 year revenue guidance is $21.5 billion, yoy + 31%, which is expected to continue the rapid momentum in 2021. The company previously said on the interactive platform that it undertakes 80% of AMD sealing and testing business, and the rapid growth of amd22 is expected to drive the high growth of the company’s overall revenue. On the one hand, the cooperation between Sok and other major customers has been further improved. On the other hand, the company’s performance has been further improved in other areas, such as the growth rate of domestic customers.
Raised investment projects are used to expand production and lay the cornerstone of long-term development
21m9 issued a fixed increase announcement and plans to raise 5.5 billion yuan for the expansion of packaging capacity in the fields of memory chips, HPC and 5g – the scheme was approved by the CSRC in 22m1. The construction period of the five projects involved in the fixed increase is 2-3 years. After completion, the total new after tax profit is about 440 million yuan, accounting for 47% of the net profit attributable to the parent company published in the company’s 21-year express. In the medium and long term, the implementation of the project is expected to enhance the company’s production capacity in potential fields such as storage, HPC and 5g, and “share the same frequency” with the growth rhythm of high-quality key customers in various downstream fields, opening up long-term growth space under the resonance of multiple key customers.
Investment advice
In view of the fact that the net profit attributable to the parent company announced in the company’s 21-year performance express exceeded the expectation, we raised the net profit attributable to the parent company in 2021 / 22 / 23 to 9.5/12.4/1.59 billion yuan (previously predicted to be 9.0/11.9/1.3 billion yuan). The company’s key customers are expected to grow rapidly in 22 years. The expansion of raised investment capacity will help the company grasp the downstream potential areas. We maintain the “buy” rating of the company.
Risk tips
The industry boom was lower than expected, the performance growth of key customers was lower than expected, and the raised investment projects were lower than expected.
