Yanker Shop Food Co.Ltd(002847) (002847)
Event: on January 3, the company issued an announcement to adjust the performance evaluation objectives of the restricted stock incentive plan in 2021.
Key points supporting rating
The equity incentive plan was adjusted and the assessment objectives were lowered. (1) This adjustment is mainly aimed at the company level performance assessment objectives in 2022 and 2023 in the company’s restricted stock incentive plan in 2021. The specific adjustments are as follows: compared with 2020, the revenue growth target in 2022 is adjusted from 62% to 38%, and the net profit deduction target is adjusted from 101% to 31%; In 2023, the growth target of revenue was adjusted from 104% to 66%, and the growth target of net profit deducted from non parent company was adjusted from 186% to 101%. (2) If calculated according to the achievement of the assessment objectives, the income and net profit deducted from non parent company in 2022 are expected to reach RMB 2.70 billion and RMB 250 million, and the income and net profit deducted from non parent company in 2023 are expected to reach RMB 3.25 billion and RMB 380 million.
After the scheme adjustment, the assessment objectives are more matched with the actual situation of the company, and the incentive effect is strengthened. When formulating the current equity incentive plan, the company set high assessment objectives based on the then industrial environment and the company’s growth expectation. However, the business environment of offline channels has changed greatly in 2021, and the company’s operation has been affected. If the assessment is carried out according to the original objectives, the incentive effect of the incentive plan will be weakened. We believe that the adjusted scheme assessment objectives are more matched with the actual situation of the company, both achievable and challenging, which will strengthen the incentive role of the equity incentive plan.
Outlook: marginal improvement is expected in 2022 and high targets will be hit in 2023. From the adjustment range of assessment objectives, the goal setting in 2022 is relatively conservative, and the goal in 2023 is more ambitious. We believe that in 2022, the company will continue to adjust and reform its products and channels, explore the most suitable path, strive to achieve steady growth on the revenue side, and is expected to show high growth under the influence of low profit base. If the adjustment effect is reflected, it will be more confident to impact the goal of 2023.
Valuation
We adjusted the previous profit forecast and estimated that the EPS of 21-23 years will be 1.24, 2.09 and 2.85 yuan, with a year-on-year increase of – 33.7%, + 68.4% and + 36.8%. The company’s short-term performance growth is under pressure. In 2021, the company made multi-directional active adjustment. The adjustment of the assessment objectives of the equity incentive plan once again strengthened the incentive effect. We judge that the company’s performance is expected to improve significantly and maintain the buy rating.
Main risks of rating
The promotion of new products is less than expected, the cost of raw materials fluctuates, and food safety problems
