\u3000\u3 Shengda Resources Co.Ltd(000603) 786 Keboda Technology Co.Ltd(603786) )
Event: the company issued an equity incentive plan, which is expected to grant 4 million restricted shares to senior managers, middle managers, technical and business backbones. Up to 463 people enjoy the incentive, and the grant price is 24.6 yuan / share.
Interpretation of incentive rules. The equity incentive covers 463 core employees and is unlocked in three years, with the unlocking proportion of 30%, 30% and 40% respectively. The assessment indicators are divided into three levels: company level performance assessment, business unit level performance assessment and individual level performance assessment, which are truly comprehensive and meticulous. The performance assessment of the company is based on the operating revenue and net profit in 2021, and the assessment year is 20222024. The growth rates of operating revenue are 15%, 32% and 53% respectively (compound growth rate of 15%); The net profit growth rates were 10%, 21% and 33% respectively (compound growth rate of 10%).
Set up wholly-owned subsidiaries overseas to cooperate with customers to actively develop new business. The company also announced today that it plans to use its own capital of £ 5000 to set up a wholly-owned subsidiary in the UK to promote the smooth development of Jaguar Land Rover global platform USB and other subsequent projects. While actively carrying out sales supporting services, the company will strive for new projects of Jaguar Land Rover, Bentley, Rolls Royce and other customer platforms, so as to ensure the long-term development of the company’s automotive electronics business.
The industry is under pressure and does not change the endogenous progress of the company. We can see that the automobile industry has been under great pressure from the outbreak of the epidemic in 2020 to the lack of core and the rise in the price of raw materials in 2021. In 2022, the geopolitical conflict led to the further intensification of raw material prices. The deterioration of China’s multi-point epidemic led to the reduction of car factory production scheduling and lagging consumption. A series of negative news impacted the market sentiment. However, the company is brewing new markets and products in difficulties, actively developing new customers, continuously improving its competitiveness in the difficulties of the industry with excellent R & D strength, quality control ability and excellent cost management, and winning many projects. By the end of June 2021, there are 113 projects under research, and the sales volume of the whole product life cycle is expected to exceed 168 million, including 12 global platform projects for customers such as BMW, Volkswagen, Porsche, Ford, Renault, PSA and Cummins; At the same time, the development of new products for new customers in China is also quite successful. We have received orders for chassis controllers from many customers, such as Xiaopeng, ideal, Geely, Byd Company Limited(002594) and so on. The product series is becoming more and more abundant. The above orders will be fulfilled one by one in the future, which is expected to become a supplier of automotive electronic cores in China and even in the world. Pay attention to long-term development and endogenous change of enterprises.
Investment suggestion: due to the continuous pressure on the industry and the outbreak of the epidemic, many car factories in Shanghai and Changchun have stopped production. We lower our expectations for 2022. It is estimated that the net profit attributable to the parent company in 2021 / 2022 will be 420 million and 710 million respectively, which corresponds to only about 24 times of PE in 2022. We will give a “buy” rating.
Risk tip: the sales volume of passenger car industry is lower than expected, the price of raw materials continues to deteriorate, and the impact of the epidemic situation.
