\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 63 Porton Pharma Solutions Ltd(300363) )
Event: boten released the draft equity incentive plan for 2022. This incentive plan plans to grant a total of 7.14 million restricted shares to 212 middle and senior managers and core backbones of the company, accounting for about 1.31% of the total share capital of the company. Among them, 5712000 shares were granted for the first time (accounting for about 80%), and 1428000 shares were reserved (accounting for about 20%, which is expected to be determined within the next 12 months after the deliberation and approval of the general meeting of shareholders). The initial grant price of this equity incentive is 41.50 yuan / share.
Normalized equity incentive binds core talents. This equity incentive plan is the fourth phase of equity incentive issued by the company, and it is also the most extensive incentive scope up to now. Among the 212 incentive objects, 206 are middle-level managers and core backbones of the company.
The performance appraisal target lays the minimum profit market in the next three years, showing the company’s strong confidence in long-term performance (2023 and 2024). The target of this performance appraisal is that in the three fiscal years 20222024, taking the net profit in 2020 as the base, the growth rate of net profit shall not be less than 190% / 220% / 260%, that is, the corresponding net profit in 20222024 shall not be less than 941 million / 1038 million / 1168 million. The performance assessment targets in 2023 and 2024 still have 98% and 123% growth compared with the net profit scale in 2021, showing strong confidence in the high growth of business after large orders.
According to the first grant of 5.712 million shares and assuming the grant in mid May 2022, it is estimated that the total amortization cost in the next four years will be 205 million yuan, and 8222 / 8193 / 3299 / 805 million yuan will be amortized from 2022 to 2025.
Profit forecast and rating: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.503/1.569/1.720 billion respectively, with a year-on-year increase of 187% / 4% / 10%, corresponding to 26 / 24 / 22 times of PE, maintaining the “buy” rating.
Risk tip: the production capacity construction progress is less than expected, the risk of large order loss, and the customer expansion is less than expected
