\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 99 Yihai Kerry Arawana Holdings Co.Ltd(300999) )
Event: the company issued the 2022 restricted stock incentive plan (Draft), which plans to grant 29.8 million shares of restricted stock to 1635 directors, senior executives and core technical / business personnel of the company, accounting for about 0.55% of the total share capital of the company. The grant price is based on the average closing price of the company’s shares on the five trading days before the grant date, and 80% of the benchmark price is the finally determined grant price of restricted stock, And the grant price shall not be less than 30.76 yuan / share.
After the listing, the equity incentive plan was issued with stable objectives. The key points of the company’s draft restricted stock incentive plan are as follows: 1) assessment objectives: the total product sales in 22-23 years shall not be less than 90.2 million tons, the total product sales in 22-24 years shall not be less than 137.25 million tons, and the total product sales in 22-25 years shall not be less than 185.8 million tons. If it is achieved, the CAGR of the company’s sales in 21-25 years will be 2.78%. 2) Granted to: directors, senior executives and core technical / business personnel of the company, of which the chairman / President / Executive Vice President / Vice President / Chief Financial Officer / Secretary of the company accounted for 1.01% / 0.92% / 0.76% / 0.59% / 0.44% / 0.37% of the total rights and interests granted by the incentive plan respectively, and the remaining 1607 core technical / business personnel accounted for 92.13%. 3) Unlocking time: it is unlocked in three phases, and the unlocking proportion is 40% / 30% / 30% respectively; 4) The amortization expense is RMB 2.691 billion / year, and the amortization expense is RMB 2.691 billion / year, respectively.
Establish a long-term incentive mechanism to demonstrate confidence in long-term development. From 18 to 21, the company’s product sales increased from 40.5 million tons to 43.5 million tons, and the annual CAGR was 2.4%. The performance target proposed by the company is relatively stable, which is in line with the company’s goal of pursuing long-term and steady development. In the long run, we are optimistic about the leading advantages of the company and are expected to achieve stable growth by means of continuous capacity expansion, channel expansion and new business development. By the end of 2021, the company has 71 production bases that have been put into operation in China, with a total capacity of 12.68 million tons under construction. In addition, the company’s channel expansion continues to advance, with 6121 dealers, and the channels are further sinking to counties, towns and villages, which helps the company improve market coverage and channel control. At the same time, the company actively develops new high growth and complementary businesses such as central kitchen, soy sauce, vinegar and yeast. After the completion of Taizhou soy sauce phase II project, the production capacity is expected to double, and Hangzhou central kitchen is expected to be put into operation soon, which is expected to provide a new driving force for the growth of the company’s performance. The introduction of this incentive plan deeply binds the interests of the core team, which is expected to fully mobilize the enthusiasm of employees and highlight the confidence of the company in long-term development.
Profit forecast: we expect the company to achieve revenue of 251.78 billion yuan, 280.43 billion yuan and 312.48 billion yuan in 2022, 23 and 24 respectively; The net profit attributable to the parent company was RMB 6.66/81.0/9.09 billion, 61.3% / 21.6% / 12.2% year-on-year, corresponding to PE of 40.3 / 33.2 / 29.6, maintaining the rating of “overweight”.
Risk tip: the price of raw materials fluctuates, the industry competition intensifies, the capacity construction is less than expected, and the new business expansion is less than expected
