The revenue doubled in three years and the net profit margin was no less than 15%. The assessment indicators of Qingdao Sentury Tire Co.Ltd(002984) ( Qingdao Sentury Tire Co.Ltd(002984) ) equity incentive plan brightened the eyes of many investors.
Qingdao Sentury Tire Co.Ltd(002984) recently released the 2022 stock option incentive plan, which plans to grant 1993300 stock options to 466 employees, accounting for about 3.08% of the total share capital, with the grant price of RMB 24.31 per share. The reporter of E company noted that Qingdao Sentury Tire Co.Ltd(002984) in the setting of the assessment indicators of equity incentive, the revenue and net profit margin are important assessment indicators. If you want to get all the incentives, the revenue will at least double in the next three years.
full coverage of R & D personnel
According to the announcement, Qingdao Sentury Tire Co.Ltd(002984) plan plans to grant 20.687 million stock options to incentive objects, accounting for 3.18% of the total share capital, of which the number of stock options granted for the first time is 1999.3 million, accounting for about 3.08% of the share capital, and 694000 reserved rights and interests.
In terms of grant price, it is 75% of the average trading price of the company’s shares 20 trading days before the announcement of the draft incentive plan, that is, 75% of 32.41 yuan per share, which is 24.31 yuan per share.
Qingdao Sentury Tire Co.Ltd(002984) this incentive is granted to a wide range of objects, including directors, senior managers, middle-level managers, main managers of subsidiaries and core technical (business) personnel. The total number of incentive objects granted for the first time is 466. Statistics show that as of December 31, 2021, the company has 2698 employees, and the incentive objects account for about 16% of the total employees.
In addition to introducing the outstanding directors and managers of the company, Jin Shengyong also introduced the outstanding directors and managers of the company in order to fully motivate them.
response to the basis for formulating assessment objectives
In terms of assessment index setting, revenue is an important assessment index. Based on the company’s revenue in 2021, the revenue will increase by 35%, 70% and 100% respectively in 2022, 2023 and 2024, that is, according to the company’s goal, the revenue will double in the next three years. However, Qingdao Sentury Tire Co.Ltd(002984) also designed four ladder cashing schemes in three exercise periods. In order to get all the incentives, it is necessary to achieve the target of revenue growth rate in the current year and the net sales interest rate should not be less than 15%.
In this regard, Jin Shengyong responded, “for the company’s revenue growth target, on the one hand, the market demand and customer order growth are considered, on the other hand, the company’s new project construction and capacity launch progress are considered.”
Jin Shengyong further introduced, “in the case of superposition of multiple adverse factors and abnormal difficulties in the tire industry last year, the company still achieved a net profit margin level of 14.55%. Based on the judgment of the industry situation in the next few years and the actual situation of the company’s development, it has determined a net profit margin index of no less than 15%, which should be said to be a very high level in the tire industry.”
the adverse factors of tire industry are weakened
In the past year, the tire industry has shifted from high growth to low cycle. Under the influence of multiple factors, the operating performance of many tire enterprises has declined sharply. Will these effects be alleviated in 2022?
Jin Shengyong said that the main adverse factors affecting the tire industry in the past year were the shortage of shipping containers and the sharp rise of shipping charges, and the high price of main raw materials. “Since this year, sea freight containers have been able to meet our delivery needs, and the sea freight has also decreased to a certain extent. For the problem of high raw material prices, we will deal with it by strengthening internal control, reducing costs and increasing efficiency.” Jin Shengyong specially pointed out to the reporter that Qingdao Sentury Tire Co.Ltd(002984) products have good market popularity and customer recognition overseas, especially in European and American developed markets, and orders have been very full, which has laid a good foundation for the company to deal with adverse factors in the industry.
Recently, several securities companies also mentioned in the research report that the current overseas demand continues to improve. In 2021, although the global tire supply chain is affected, the import volume of semi steel and all steel tires in the United States still reached the highest record. At the same time, the price of raw materials has stabilized and the tension of shipping has eased, and the tire industry is expected to reverse quarter by quarter.
It is reported that at present, Qingdao Sentury Tire Co.Ltd(002984) Thailand phase II has started mass delivery this year and is expected to gradually increase the volume. In addition, the follow-up Spanish plant of 12 million semi steel tires is expected to be put into operation in early 2024 and gradually contribute to the performance increment in 2024.
Western Securities Co.Ltd(002673) pointed out that under the background of good export and the increase of price center in overseas market, Qingdao Sentury Tire Co.Ltd(002984) is expected to continue the price increase policy in the second half of last year, continue to transfer the cost of raw materials to the downstream and realize the repair of profit margin. In this regard, Western Securities Co.Ltd(002673) , Gf Securities Co.Ltd(000776) gave Qingdao Sentury Tire Co.Ltd(002984) a “buy” rating, and Shenwan Hongyuan Group Co.Ltd(000166) maintained a “overweight” rating.
incentive to maintain high-quality growth
Qingdao Sentury Tire Co.Ltd(002984) said in the announcement that the purpose of implementing the incentive plan is to further improve the corporate governance structure, establish and improve the company’s incentive mechanism, fully mobilize the enthusiasm of the company’s middle and senior managers and core employees, retain and motivate talents, more closely combine the interests of the middle and senior managers and core employees with the interests of the company, and strengthen the cohesion of the enterprise, Enable all parties to pay common attention to the long-term development of the company and promote the sustainable development of the company.
It is understood that in the equity incentive methods of listed companies, stock option incentive, restricted stock plan, employee stock ownership plan, virtual stock appreciation right and other forms are mostly used. From the A-share market, the enterprises that have announced the equity incentive plan are mainly in the fully competitive and growing industries such as medicine, household appliances, chemical industry, electronics, communication and high technology.
Insiders pointed out that the growth of enterprises is good, and those with development potential generally adopt stock option incentive. The good growth of the enterprise means that the market has not been developed or saturated, and the enterprise has sufficient material capital and human resources to develop business.
According to the reporter’s observation, according to the current development stage of China’s tire industry, the competition pattern of the industry tends to be good and gradually concentrates on leading enterprises. At the same time, China’s tire enterprises continue to launch an impact on the international high-end market, and the enterprise management level is gradually in line with international giants.
Jin Shengyong also told reporters that the reason why the company adopts the incentive method of stock option is that first, considering the wide range of incentive objects, for the incentive objects, there is no need to pay consideration for the time being, and the financial pressure of employees will be relatively small. Second, the grant price of options is higher than that of restricted stocks, which is more conducive to encouraging employees to achieve their personal performance goals, so as to achieve the overall performance goals of the company.
\u3000\u3000 “This equity incentive, we hope to realize the incentive to employees, but not only become welfare, so we set a certain challenging performance goal, and set a dual performance goal, that is, while maintaining the rapid growth of income, we also need to maintain a high-quality growth. Moreover, the scope of this incentive is relatively wide. We believe that only in this way can we achieve the effect of full incentive and give full play to equity incentive The role of excitation. ” Jin Shengyong.
