\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 63 Porton Pharma Solutions Ltd(300363) )
Event overview
The company issued the 2022 restricted stock incentive plan (Draft): this time, it plans to grant 212 middle and senior managers + core backbone with restricted shares (from private placement) of no more than 5.712 million shares, accounting for 1.05% of the share capital, and the grant price is 41.50 yuan / share; The sales restriction period of restricted shares granted for the first time in the incentive plan is 12 months / 24 months / 36 months from the date of completion of registration of the first grant, i.e. 40% / 30% / 30%. The assessment year for lifting the restriction is three fiscal years from 2022 to 2024, i.e. relative to the net profit attributable to the parent in 2020, the cumulative growth of the company’s net profit attributable to the parent in 20222024 is not less than 190% / 220% / 260% respectively. It is preliminarily estimated that the total amortization cost is 2051888 million yuan (822162819332329855805400 yuan respectively from 2022 to 2025). In addition, the company reserved 4128000 restricted shares, accounting for 0.26% of the share capital.
Analysis and judgment:
From 19 to 22 years, the equity incentive has been normalized for four consecutive years to enhance the certainty of future business development and performance growth
Cdmo industry is a high-profile track with equal emphasis on scientific and technological attributes (Engineer cluster and low-cost advantage) + asset attributes. As a core participant in small molecule cdmo industry, the company plans to carry out equity incentive for middle and senior management + core technical backbone again in 2022 after implementing equity incentive plan for three consecutive years from 2019 to 2021. The equity incentive mechanism for core employees will be normalized, deeply bound and attract core technical backbone, It is conducive to the medium and long-term sound development of the company’s business and ensure the certainty of future growth.
The employees granted restricted shares for the first time include Ju Nianfeng (Chairman and general manager), Ji Yaohui (Senior Deputy General Manager, responsible for small molecule cdmo business), Bai Yinchun (deputy general manager, responsible for the operation of Jiangxi factory and Hubei factory), Chen Hui (deputy general manager, financial director), Zhu Po (deputy general manager, responsible for procurement, logistics, intellectual property, etc.) Six senior executives of PI Wei (deputy general manager and Secretary of the board of directors) and 206 other middle and senior managers and core backbones were granted a total of 5.712 million shares for the first time, accounting for 1.05% of the share capital. Compared with the incentive scope of the equity incentive plan in 2021 and the number of shares granted, they showed a certain increase. The cumulative growth of the parent company’s net profit in 20242024 is no less than 26.8%, which is no less than the parent company’s net profit of 20242024 / 2024, and the cumulative growth of the parent company’s net profit in 20242022 is no less than 26.8%.
Performance forecast and investment suggestions
Maintain the previous profit forecast, that is, the revenue in 22-24 years is 7.100/79.00/8.300 billion yuan respectively, and the EPS is 2.68/3.10/3.33 yuan respectively, corresponding to the closing price of 75.9 yuan / share on April 24, 2022, and the PE is 28.36/24.49/22.79 times respectively, maintaining the “buy” rating.
Risk tips
The core technology backbone and management risk of loss, the risk of increased competition, the loss of core technical personnel, the risk of exchange rate fluctuations, the expansion of New Coronavirus’s epidemic affecting China’s external business, and the implementation of COVID-19 orders are lower than expected.
