\u3000\u3 Shengda Resources Co.Ltd(000603) 236 Quectel Wireless Solutions Co.Ltd(603236) )
Key investment points
Event: the company issued the 2022 stock option incentive plan (Draft), which plans to grant 2.896 million stock options to 148 incentive objects, including senior managers and core technical / business personnel, accounting for about 1.99% of the company's total share capital of 145 million shares. The performance assessment requirements of the equity incentive plan are as follows: in 2022 / 2023 / 2024 / 2025, the operating income shall not be less than 14.9 billion yuan (+ 32.9%), 19.3 billion yuan (+ 29.5%), 24.1 billion yuan (+ 24.9%), 30.2 billion yuan (+ 25.3%) respectively. The exercise price of stock options is 177.57 yuan per share.
In 2021, the performance Express reported high growth. In 2021, the company achieved an operating revenue of 11.21 billion yuan, a year-on-year increase of 83.6%, and a net profit attributable to the parent company of 350 million yuan, a year-on-year increase of 86%. The high growth of the company's performance is mainly due to the strong demand for the downstream Internet of things, the company's diversified products and the continuously optimized product structure.
At present, the company has formed a one-stop solution including cellular communication module, Wi Fi & BT module, GNSS module, antenna and cloud platform. In 2021, the company has achieved high revenue growth in vehicle, intelligent security, gateway, wireless payment, notebook computer and other fields. At the same time, in the face of the market environment of core shortage and rising raw material prices in 2021, the company realized internal fine management and improved operation efficiency, with a net interest rate of about 3.12%, an increase of 33 percentage points over 2020.
The high exercise goal demonstrates the company's confidence. The company issued the equity incentive plan for 2022, and the performance evaluation target is that the compound growth rate of revenue from 2022 to 2025 will reach 28.1%. Specifically, in 2022 / 2023 / 2024 / 2025, the operating revenue will not be less than 14.9 billion yuan (+ 32.9%), 19.3 billion yuan (+ 29.5%), 24.1 billion yuan (+ 24.9%) and 30.2 billion yuan (+ 25.3%) respectively. The incentive plan is for 148 financial directors and 147 core technical / business personnel. It is proposed to grant 2.896 million stock options, accounting for about 1.99% of the company's total share capital of 145 million shares. The exercise price of stock options is 177.57 yuan per share. We believe that the equity incentive plan has high assessment objectives and sufficient incentives, which shows the company's confidence in future performance.
5g PC module is available, and the leading market share is stable. The company and Qualcomm jointly launched Xiaolong X65 and X62 5gm 2 module, while entering the PC market, enables 5g connection between laptop and desktop. According to the data of counterpoint, in 2021, Q3 global cellular Internet of things module shipments increased by 70% year-on-year, of which the market share of moving far reached 31.6%, an increase of 10.4 percentage points over the first half of the year, ranking first.
Profit forecast and investment suggestions. It is estimated that the company's EPS from 2021 to 2023 will be 2.41 yuan, 4.66 yuan and 6.88 yuan respectively, and the corresponding PE will be 73, 38 and 26 times respectively, maintaining the "hold" rating.
Risk warning: the risk that the company's new product research and development is less than expected; The risk of relying on overseas companies for upstream chip supply; Exchange rate fluctuations generate exchange losses and other risks.
