Chengdu M&S Electronics Technology Co.Ltd(688311) 4 on the evening of April 6, 2022 restricted stock incentive plan (Draft) was released, which is the first restricted stock incentive plan launched since the company was listed. The incentive objects include 68 employees, including Xiang Rong, the actual controller of the company. The grant price of restricted shares is 23.28 yuan / share, which is equivalent to a 40% discount based on the company’s closing price of 55.74 yuan / share on April 6.
grant price is 23.28 yuan / share
Chengdu M&S Electronics Technology Co.Ltd(688311) 2022 restricted stock incentive plan (Draft) shows that the number of restricted shares to be granted in the incentive plan is 1249000 shares, accounting for 1.09% of the total share capital of the company at the time of announcement of the draft incentive plan. Among them, 1.004 million shares were granted for the first time and 245000 shares were reserved.
Source: Chengdu M&S Electronics Technology Co.Ltd(688311) announcement
The incentive tools adopted by the incentive plan are the first type of restricted stocks and the second type of restricted stocks. Among them, the total number of restricted shares granted in the first category is 378000 shares, and no reserved rights and interests are set. The total number of restricted shares granted in the second category is 871000 shares, with 626000 shares granted for the first time and 245000 shares reserved. The grant price of class I restricted shares and class II restricted shares granted for the first time and reserved is 23.28 yuan / share.
Source: Chengdu M&S Electronics Technology Co.Ltd(688311) announcement
As of the closing on April 6, Chengdu M&S Electronics Technology Co.Ltd(688311) closed at 55.74 yuan / share, a slight decrease of 1.64%. The grant price of restricted shares is equivalent to 41.77% of the closing price on April 6.
There are 68 incentive objects in total, accounting for 16.63% of the total number of 409 employees at the end of 2021, including the company’s directors, senior managers, core technicians, middle managers and core backbones who worked in the company (including consolidated statement subsidiaries, the same below) when the company announced the incentive plan.
It is worth noting that the incentive objects granted by the incentive plan include Xiang Rong, the actual controller of the company. The number of class I restricted shares to be granted to Xiang Rong is 65000.
Source: Chengdu M&S Electronics Technology Co.Ltd(688311) announcement
The announcement said that Xiang Rong, as the chairman and core technician of the company, comprehensively presided over the operation and management of the company and played a significant and positive role in the R & D, production and sales of the company’s products, the formulation of the company’s strategic policies and business decisions, and major operation and management matters. The inclusion of Xiang Rong in the incentive plan is in line with the development needs of the company and the provisions of relevant laws and regulations such as the listing rules, It is necessary and reasonable.
The assessment year of the incentive plan is three fiscal years from 2022 to 2024. Based on the company’s net profit in 2021, the growth rate of net profit in 2022, 2023 and 2024 shall not be less than 40%, 90% and 150% respectively.
Source: Chengdu M&S Electronics Technology Co.Ltd(688311) announcement
Some investors said that Chengdu M&S Electronics Technology Co.Ltd(688311) will become a high growth Bull Stock if the performance evaluation of the incentive plan can be completed in the future.
Source: stock bar
high performance and low share price
Chengdu M&S Electronics Technology Co.Ltd(688311) since its establishment, it has continuously focused on the R & D and manufacturing of relevant products in the field of satellite application technology. It is a high-tech enterprise engaged in the R & D, manufacturing, sales and technical services of satellite navigation and satellite communication terminal equipment. Its main products include satellite navigation, satellite communication and other products.
Since its listing on July 31, 2020, Chengdu M&S Electronics Technology Co.Ltd(688311) performance has maintained rapid growth. In 2020, the company’s revenue and net profit attributable to shareholders of listed companies increased by 49.52% and 46.53% respectively year-on-year.
Source: Chengdu M&S Electronics Technology Co.Ltd(688311) announcement
On February 26, 2022, Chengdu M&S Electronics Technology Co.Ltd(688311) released the annual performance express of 2021, which showed that the company achieved a total operating revenue of 483 million yuan in 2021, with a year-on-year increase of 14.18%; The net profit attributable to the shareholders of the listed company was 140 million yuan, a year-on-year increase of 30.61%; The basic earnings per share is 1.22 yuan.
Source: Chengdu M&S Electronics Technology Co.Ltd(688311) announcement
Although the performance has maintained rapid growth, the recent performance of the company’s share price is not ideal. From the intraday high of 80.5 yuan / share on December 1, 2021 to the intraday low of 55.72 yuan / share on April 6, 2022, the share price fell by 30.78% in about five months.
On March 3, the company announced that, based on its confidence in future development and recognition of the company’s long-term value, in order to establish and improve the long-term incentive mechanism, mobilize the enthusiasm of employees, improve team cohesion and competitiveness, and help the company’s long-term development, it plans to use its own funds to repurchase the company’s shares in the form of centralized bidding transaction, with a total repurchase fund of no less than 25 million yuan (inclusive) and no more than 50 million yuan (inclusive), The repurchase price shall not exceed 70 yuan / share (inclusive). The repurchased shares are planned to be fully used for the implementation of employee stock ownership plan or equity incentive at an appropriate time in the future.
Source: Chengdu M&S Electronics Technology Co.Ltd(688311) announcement
As of March 31, the company has repurchased 582700 shares through the trading system of Shanghai stock exchange through centralized bidding, accounting for 0.51% of the total share capital of the company. The highest price of repurchase is 61 yuan / share, the lowest price is 55.19 yuan / share, and the total amount of funds paid is 342135 million yuan (excluding stamp duty, transaction commission and other transaction expenses).
