\u3000\u30003 Anhui Fuhuang Steel Structure Co.Ltd(002743) 00274)
Performance review
On May 13, the company issued the share repurchase plan and equity incentive plan, and planned to repurchase 5-10 million shares of the company’s shares with its own funds of 500-1 billion yuan at a repurchase price of no more than 100 yuan / share for the employee stock ownership plan; At the same time, it is planned to grant 6.5 million restricted shares to the incentive object at a price of 35.54 yuan / share. The assessment target is that the revenue in 20222025 will increase by 40% / 80% / 120% / 160% compared with that in 2021, or the net profit attributable to the parent company will increase by 70% / 110% / 150% / 190%.
Business analysis
The equity incentive plan binds core personnel to demonstrate high confidence. The object of this incentive plan of the company is the core and backbone employees of the company. The incentive object is no more than 468, accounting for 6.96% of the total number of employees of the company. The number of incentive objects reaches a new high. According to the performance assessment objectives, the company will achieve a revenue of RMB 33.8/435531/62.8 billion or a net profit attributable to the parent company of RMB 2.691/33.24/39.57/4.59 billion from 2022 to 2025, an increase of 40% / 80% / 120% / 160% or 70% / 110% / 150% / 190% compared with 2021. This incentive plan is not only conducive to the company’s establishment and improvement of benefit sharing mechanism, but also demonstrates the company’s confidence in performance growth.
The profit of inverter is stable and will return to the growth track this year. In 2021, the company’s performance was dragged down by the one-time loss accrued at the end of the year, the accelerated expansion of new business and the increased cost rate. However, the inverter business volume and profit performance were outstanding. With the advantage of leading supply chain, the company ensured the market share target and relatively stable profitability under the background of rising raw material prices. This year, as the company’s businesses return to normal, the advantages of the supply chain will ensure that the company’s performance returns to the growth track.
The impact margin of the short-term epidemic improved, and Q2 shipments increased month on month. With the resumption of work and production in Shanghai and the gradual recovery of port transportation, we expect the company’s inverter delivery volume to resume growth month on month from May to June. Although the Yangtze River Delta epidemic has formed a certain pressure on the supply of raw materials in the short term, the company increased chip preparation in order to ensure shipment in the first quarter, and the inventory reached a record high, which is expected to ensure the month on month growth of Q2 performance. Subsequently, with the improvement of the epidemic, the pressure on raw materials is expected to be gradually relieved.
Profit adjustment and investment suggestions
Maintain the company’s net profit forecast of 3.56 billion yuan, 5.42 billion yuan and 7.34 billion yuan from 2022 to 2024, corresponding to 30, 20 and 15 times of PE respectively, and maintain the “buy” rating.
Risk warning: the global covid-19 epidemic worsened more than expected; Deterioration of international trade environment; The development of new business is less than expected; RMB exchange rate fluctuation risk.
