\u3000\u3 Shengda Resources Co.Ltd(000603) 236 Quectel Wireless Solutions Co.Ltd(603236) )
[matters]
The company issued the announcement of 2022 equity incentive plan (Draft). The number of stock options to be granted to incentive objects in this incentive plan is 2895900, accounting for 1.99% of the company’s current total share capital. Each stock option granted under this plan has the right to purchase RMB A-share common shares of the company with an exercise price of 177.57 yuan within the vesting period when the effective conditions and effective arrangements are met.
[comments]
The company issued the announcement of 2022 equity incentive plan (Draft). The number of stock options to be granted to incentive objects in this incentive plan is 2895900, accounting for 1.99% of the company’s current total share capital. Each stock option granted under this plan has the right to purchase RMB A-share common shares of the company with an exercise price of 177.57 yuan within the vesting period when the effective conditions and effective arrangements are met. The total number of incentive objects to be granted in the plan is 148, including senior managers and core technical / business personnel. The stock options granted in the incentive plan will be exercised in four phases after 12 months from the authorization date, and the exercise proportion of each phase is 25%, 25%, 25% and 25%. We believe that the equity incentive plan covers a wide range, which is conducive to the stability and enthusiasm of the company’s core employees.
For the performance assessment objectives at the company level, the company has comprehensively considered the macroeconomic environment, the company’s historical performance, industry development status, market competition and the company’s future development plan, and set the target that the operating revenue from 2022 to 2025 will not be less than 14.9 billion yuan, 19.3 billion yuan, 24.1 billion yuan and 30.2 billion yuan respectively. Based on the company’s performance express data in 2021, the year-on-year growth rate of revenue from 2022 to 2025 will be 32.9%, 29.5% respectively 24.9% and 25.3%, corresponding to a compound annual growth rate of more than 28%, reflecting the company’s confidence in future development under the high prosperity of the Internet of things industry.
The company’s main business is the design, production, R & D and sales services of wireless communication modules and their solutions in the field of Internet of things. It can provide one-stop solution services including wireless communication modules, antennas and cloud platform management of Internet of things. The company has strong comprehensive competitiveness, rapid growth in revenue scale in recent years, and has firmly ranked the leading position in the world. According to the statistical data of counterpoint, The company’s 2021q1-q3 shares in the global IOT cellular module market are 21.6%, 21.2% and 31.6% respectively, far ahead of other manufacturers outside China. For the future development of the company, we believe that under the high boom of the Internet of things industry, the number of connections will still be in a steady growth trend, and the company will directly benefit. The Internet of vehicles, mobile payment, CPE, industrial Internet of things and full-time Internet notebooks are expected to become important growth points of the company. Considering the company’s performance objectives, industry prosperity and market position this time, we raised the company’s revenue forecast from 2022 to 2023, thus raising the company’s profit forecast. It is estimated that the company’s revenue from 2021 to 2023 will be RMB 11.21 billion, 15.694 billion and 21.187 billion, and the net profit attributable to the parent company will be RMB 350 million, 629 million and 930 million, corresponding to 76, 42 and 28 times of PE, maintaining the “overweight” rating.
[risk tips]
The growth of Internet of things connections is less than expected;
The upstream supply continues to be tight and the price of raw materials is high;
Market competition intensifies.
