\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 99 Yihai Kerry Arawana Holdings Co.Ltd(300999) )
Events
On the evening of March 31, 2022, the company issued the 2022 restricted stock incentive plan (Draft): the plan plans to grant 29.8 million restricted shares to 1635 members of the company’s directors, senior managers, middle managers and technical backbones.
Key investment points
The equity incentive plan is implemented to stimulate the company’s business vitality
The company plans to grant 29.8 million restricted shares to 1635 directors, supervisors and core backbones at no less than 30.76 yuan per share, including chairman Guo Kongfeng, president Mu Yankui, executive vice president Niu Yuxin, etc., accounting for about 0.55% of the total share capital of the company on the announcement date of this incentive draft.
The incentive plan is unlocked in three times, and the performance assessment requirements are: the total product sales in 20222023 are not less than 90.2 million tons, the total product sales in 20222024 are not less than 137.25 million tons, and the total product sales in 20222025 are not less than 185.8 million tons. It is estimated that the sales volume from 2022 to 2025 will be about 44.57 million tons, 45.66 million tons, 46.78 million tons and 47.92 million tons, and the four-year CAGR will be about 2.5%. Since the overall average unit price CAGR from 2017 to 2021 is about 6%, assuming that the average price continues to increase at this rate, the revenue growth rate from 2022 to 2025 is expected to reach more than 8.7%.
The incentive plan selects “product sales volume” as the performance evaluation index at the company level. We believe that it directly reflects the main business operation and market value growth, and there are many incentive personnel this time, which can maximize the binding of the core management, improve the enthusiasm of the overall employees, and further stimulate the business vitality of the company.
The layout of central kitchen and condiment projects shows the advantages of large-scale
With the continuation of the recovery trend of consumption, the company’s traditional businesses such as kitchen food, feed raw materials and oil technology will achieve restorative development. In terms of new business, accelerate the construction of central kitchen and condiment projects. The central kitchen and condiments are closely related to the kitchen food business such as traditional grain, oil, rice and noodles, which is expected to better integrate the company’s existing products and channel resources.
1) Central Kitchen: at present, the construction of central kitchen projects in Chongqing, Langfang and Xi’an is accelerated and will be put into operation in 2022. In the future, the company will arrange 100 central kitchens across the country to form a scale advantage.
3) condiments: soy sauce uses dual brands and dual strategies. The completion of Taizhou Wanzhuang soy sauce phase II project will double the production capacity, and Yangjiang, Guangdong is preparing to build a factory. The condiment business pays more attention to the rapid growth of weight, and realizes capacity expansion through self construction and acquisition.
Profit forecast
We are optimistic that the company will continue to deepen its original business, and the central kitchen and condiment project will become the new point of the company’s performance. At the same time, the implementation of equity incentive will effectively stimulate the company’s business vitality. Slightly adjust the EPS of 20222024 to 1.15/1.44/1.71 yuan (the previous value is 1.30/1.58/1.91 yuan respectively), and the corresponding PE of the current stock price is 43, 34 and 29 times respectively, maintaining the “recommended” investment rating.
Risk tips
Macroeconomic fluctuation risk, industrial policy change risk, epidemic drag consumption risk, downstream demand fluctuation risk, raw material price fluctuation risk, food safety and quality control risk, etc.
