\u3000\u3 China Vanke Co.Ltd(000002) 860 Hangzhou Star Shuaier Electric Appliance Co.Ltd(002860) )
Event: on the evening of May 20, Hangzhou Star Shuaier Electric Appliance Co.Ltd(002860) issued the draft restricted stock incentive plan for 2022, which plans to grant 6.1 million restricted shares to 93 incentive objects, accounting for 2.78% of the total share capital of the company, and the grant price is 7.68 yuan / share.
Equity incentive promotes team cohesion and drives the high-quality development of the company. The assessment year of the incentive plan is three fiscal years from 2022 to 2024. The performance assessment objectives at the company level need to meet one of the following two conditions: 1) based on the net profit of 2021, the net profit growth rate of 22 / 23 / 24 is not less than 10 / 20 / 30%, and 2) based on the operating income of 2021, the revenue growth rate of 22 / 23 / 24 is not less than 20 / 40 / 60%. We believe that the setting of assessment objectives is relatively stable and conservative, and it is expected to be exceeded. The 93 objects covered by this incentive plan include directors, senior executives and other core personnel, which effectively combine the interests of shareholders, the company and the core team, improve the cohesion of employees and the development vitality of the company, and promote the high-quality and long-term development of the company.
High average price repurchase demonstrates the company’s confidence in development. The stock source of this equity incentive is repurchased by the company from the secondary market. As of May 16, the company has completed the repurchase of 6.1 million shares, with the highest transaction price of 19.829 yuan / share and the lowest transaction price of 13.24 yuan / share, with a total transaction volume of 105 million yuan. The average repurchase price is about 17.22 yuan / share, higher than the current share price, demonstrating the company’s full confidence in future development.
Sufficient orders for photovoltaic modules, continue to promote capacity expansion and overseas channel construction. The company will increase the acquisition of 39.2% equity of fule new energy, and the total shareholding ratio will reach 90.2% after the completion of the transaction. At present, fule new energy, a subsidiary, has sufficient orders, and its production capacity has gradually climbed to 1.5gw. It has established stable supply relations with many customers such as Wenzhou Xiangtai, Taiheng new energy and Anhui Daheng. With the recovery of shipping, the company continues to expand overseas channels. At present, the export of components accounts for about 50%. The company will continue to invest in the construction of 2gw high power generation Cecep Solar Energy Co.Ltd(000591) component project to meet the demand of orders. The company expects to complete the investment and construction in the second half of 2023. In addition, about 1.2MW photovoltaic power station can be installed on the roof of fule plant. The company expects to complete and grid connected power generation in June this year, so as to accumulate the construction experience of photovoltaic power station with point area. The company continues to deepen its layout in the photovoltaic field, demonstrating its confidence in manufacturing spillover and industrial transformation. We expect that its profitability and core competitiveness will be further strengthened in the future.
Profit forecast and investment rating: with the stabilization of raw material prices and the mitigation of the impact of the epidemic in China, the main business of home appliance parts of the company is expected to continue the steady growth trend, and the new energy business of the second main business is expected to continue to resonate with the high prospect of the industry and create incremental space. We estimate that the operating revenue of the company from 2022 to 2024 will be RMB 2.363/34.96/4.622 billion respectively, with a year-on-year increase of + 72.7% / + 47.9% / + 32.2%, and the net profit attributable to the parent company will be RMB 184 / 228 / 275 million respectively, with a year-on-year increase of + 28.1% / + 23.6% / + 20.5%, corresponding to the current market value PE of 18.45/14.93/12.38 times respectively. Maintain the “buy” rating.
Risk factors: rising prices of raw materials, declining prosperity of downstream industries, increased risk of global epidemic, exchange rate fluctuations, intensified industry competition, etc.
