\u3000\u3 China Vanke Co.Ltd(000002) 724 Ocean'S King Lighting Science & Technology Co.Ltd(002724) )
Matters:
On March 21, the company issued the 2022 stock equity incentive plan (Draft) and the 20222024 long-term incentive employee stock ownership plan. Guoxin building materials Views: 1) strengthen employee incentive and build a long-term incentive mechanism: establish and improve the company's long-term incentive mechanism, closely combine the personal interests of employees with the interests of the company, improve the level of corporate governance, help to attract and retain excellent talents, fully mobilize the enthusiasm of employees, improve the competitiveness of the company and promote the long-term development of the company in the future; 2) The management mechanism has been continuously improved and the results of independent operation have been shown: after years of independent operation and long-term market insight of the division, eight subsidiaries have been established since last year to accelerate the release of the company's performance; 3) The degree of professional lighting attention continues to improve, leading enterprises are expected to benefit more: under the factors of energy consumption dual control and intelligent manufacturing, the industrial enterprises' cognition of professional lighting will be improved, and the market share of high-quality enterprises covered by the whole industry will be improved in the future; 4) Risk warning: market development is not as expected; Industry competition intensifies; Employee Turnover Risk; 5) Investment suggestion: there is a good driving force for future growth and maintain the "buy" rating: it is expected that the EPS will be 0.51/0.69/0.90 yuan / share in 21-23 years, and the corresponding PE will be 27.2/20.0/15.3x, maintaining the "buy" rating.
Comments:
Increase staff incentives and build a long-term incentive mechanism
On March 21, the company issued the 2022 stock equity incentive plan (Draft) and the 20222024 long-term incentive employee stock ownership plan, including: 1) stock option incentive plan:
The stock option incentive plan is mainly for directors, senior managers, middle managers, core technical (business) personnel and relevant employees that the board of directors of the Company deems necessary to be encouraged, with a total number of 228; The number of stock options to be granted is 17 million, accounting for about 2.18% of the current total share capital of the company, of which 13.98 million are granted for the first time, accounting for about 1.79% of the total share capital, accounting for 82.24% of the total number of stock options granted this time, and the reserved part is 3.02 million; The exercise price of stock option is 13.31 yuan / share.
This stock option exercise is divided into three exercise periods. The assessment indicators of exercise conditions are divided into company level performance assessment and individual level performance assessment. Among them, the company level performance objectives are: Based on the operating income in 2021, the growth rate of operating income from 2022 to 2024 is not less than 25%, 56% and 95% respectively, corresponding to the minimum operating income of 2.636 billion, 3.290 billion and 4.113 billion respectively in three years, and the compound growth rate of three-year revenue is about 25%; Alternatively, based on the net profit attributable to the parent company in 2021, the growth rate of net profit attributable to the parent company in 20222024 shall not be less than 30%, 72% and 130% respectively, corresponding to the minimum net profit attributable to the parent company in three years of 515 million, 681 million and 911 million respectively, and the compound growth rate of net profit attributable to the parent company in three years is about 32% (the year-on-year growth rate in three years is 30% / 32% / 34% respectively). The requirements for performance appraisal at the individual level are: evaluate the individual performance appraisal in four grades A / B / C / D, and specify the corresponding individual exercise proportion. If the performance appraisal at the company level meets the standard, the actual exercise quantity of the incentive object in the current year = the planned exercise stock quantity of the individual in the current year the exercisable proportion at the individual level.
2) long term incentive employee stock ownership plan from 2022 to 2024:
The employee stock ownership plan is implemented in three phases. The participants are directors, supervisors and senior managers (excluding independent directors) of the company (including subsidiaries), middle and senior managers, core technology and business backbone personnel of the company who are recognized by the board of directors as contributing to the development of the company. The capital source is the stock ownership plan incentive fund withdrawn by the company, that is, taking 20222024 as the assessment year, based on the net profit attributable to the parent company in 2021, and taking the growth rate of the net profit attributable to the parent company as the assessment index, the excess progressive withdrawal of incentive funds in each period is carried out. When the compound growth rate of the net profit attributable to the parent company is less than 35%, more than 35% to 50% and more than 50%, the proportion of excess progressive withdrawal of incentive funds is 0%, 30% and 45% respectively.
Through this stock option incentive plan and employee stock ownership plan, on the one hand, it will help to further establish and improve the company's long-term incentive mechanism, improve the level of corporate governance, attract and retain excellent talents, fully mobilize the enthusiasm of directors, middle and senior managers, core technology and business personnel, and enhance the company's competitiveness. On the other hand, under the setting of specific corporate performance and personal performance assessment objectives, Closely combine the personal interests of employees with the interests of the company to promote the long-term development of the company in the future.
The management mechanism has been continuously improved and the results of independent operation have been shown
After years of independent operation and long-term market insight of the business division, five corresponding subsidiaries have been established in the railway, ship venue, power grid, oil, military products and other business divisions since January last year. In January this year, the company further established public security fire fighting, petrochemical and metallurgical gold companies, and the independent operation mechanism has been continuously deepened. We have previously judged that 2021 will be the first year of accelerated performance of the company, which has been continuously verified. According to the latest annual performance forecast released by the company, the company's revenue and net profit attributable to the parent company in 2021 will be RMB 2.109 billion and 396 million respectively, with a year-on-year increase of 23.75% and 31.81% respectively.
The importance of professional lighting continues to increase, and leading enterprises are expected to benefit more
With the development of Chinese industrial enterprises, the importance of professional lighting has been continuously improved in recent years. On the one hand, under the background of dual control of energy consumption, the requirements of technological upgrading, structural reform and efficiency improvement make the demands of industrial enterprises for energy conservation, efficiency improvement and safe production increasingly urgent. On the other hand, the intelligent manufacturing of industrial enterprises is accelerating, and professional LED lamps have obvious advantages over traditional lamps, Relevant services are gradually recognized by the market. At present, there is about 70 billion led transformation space in the industrial field. If the upgrading of "lighting +" related products and services is considered, the market space is expected to be higher. Due to the lack of market awareness of professional lighting in the past, the industry pattern is still relatively scattered. Most enterprises are concentrated in specific industry fields, and the market share of leading enterprises that realize the full coverage of industry is still low. With the improvement of cognition and attention of industrial enterprises in the future, high-quality enterprises are expected to benefit significantly.
Investment suggestion: there is a good driving force for future growth and maintain the "buy" rating
Through more than 20 years of deep cultivation in the industry, the company has established a long-term good product quality and customer service image in the field of professional lighting, and has a good competitive advantage in technology R & D and innovation investment. In recent years, the company has continuously strengthened its independent operation, improved various management mechanisms, enhanced its comprehensive competitiveness, and laid a solid foundation for its long-term development in the future. The company's performance objectives in this incentive plan further highlight the company's confidence in the future long-term development. We believe that under the benefit sharing mechanism of the company, employees and shareholders, the company will have good growth momentum and sustainable development ability in the future. It is estimated that the net profit attributable to the parent company in 21-23 years will be RMB 396 / 539 / 689 million, EPS will be RMB 0.51/0.69/0.90/share, and the corresponding PE will be 27.2/20.0/15.3x, maintaining the "buy" rating.
Risk tips
Market development is less than expected; Industry competition intensifies; Employee Turnover Risk
