\u3000\u3 China Vanke Co.Ltd(000002) 340 Gem Co.Ltd(002340) )
Events
The company issued the restricted stock incentive plan for 2022, which plans to grant 718 incentive objects a total of 478352 million rights and interests, accounting for 1.0% of the total share capital of the company on the announcement date, and the grant price is 3.67 yuan per share.
Key investment points
Equity incentive covers 718 core employees and binds the interests of backbone and the company
The incentive objects granted for the first time in this incentive plan include 718 leading talents and innovative talents, core innovative talents, core engineering and technical talents, core operation and management personnel and core production management personnel, accounting for 10% of the total number of employees at the end of 2021, covering a wide range, which is conducive to binding the interests of the company’s core backbone and listed companies; The total authorized profit per capita is 66600 shares, which is conducive to stimulating the enthusiasm of employees.
The assessment objectives are relatively stable, and the assessment requirements are implemented at the individual level
The assessment objectives at the company level are that the revenue and net profit attributable to parent company in 2022 will reach 26 billion yuan and 1.5 billion yuan respectively (with a year-on-year growth rate of about 35% and 63%), the cumulative revenue and net profit attributable to parent company in 20222023 will reach 58.8 billion yuan and 3.6 billion yuan, and the cumulative revenue and net profit attributable to parent company in 20222024 will reach 100.6 billion yuan and 6.8 billion yuan. Among them, the impact of incentive cost shall be excluded from the net profit attributable to the parent company, and the sales restriction can be lifted 100% if at least one goal of income and net profit attributable to the parent company is reached. In addition, corresponding assessment requirements are also made at the individual level.
The strategic orders of high nickel precursors are sufficient, and it is planned to open a new chapter of internationalization for overseas listing
Since 2021, the company has signed two memoranda with ecopro BM of South Korea to supply high nickel precursors for power batteries of no less than 176000 tons and no less than 700000 tons in 20212023 and 20232026 respectively, and signed supply agreements with Xtc New Energy Materials(Xiamen) Co.Ltd(688778) source, Ningbo Ronbay New Energy Technology Co.Ltd(688005) and other core customers. The total strategic orders of the company’s precursor market in the next five years will exceed 1.3 million tons. The company’s phase I recycled lithium carbonate production line for internal supply has been put into operation in February 2022, and the current capacity is 500 tons / month; In the first quarter of 2022, precursor shipments exceeded 30000 tons, with a year-on-year increase of 56%. Export orders rose against the trend from April to May. In addition, the company plans to issue global depositary receipts and list on the Swiss stock exchange, and sign a memorandum of cooperation with the Consulate General of Hungary in Shanghai to support international layout and production, which will better benefit from the requirements for increasing the proportion of recycled materials proposed in the new EU battery law.
Profit forecast and valuation
The company is a global leader in lithium battery ternary precursor, cobalt trioxide and waste resource recycling. We estimate that the net profit attributable to the parent company in 22-24 years is RMB 1.626 billion, RMB 2.400 billion and RMB 3.044 billion respectively, and the corresponding EPS in 22-24 years is RMB 0.34, RMB 0.50 and RMB 0.64/share respectively. The PE corresponding to the current stock price is 22, 15 and 12 times respectively, which is rated as “buy”.
Risk of worse production capacity and worse international market competition
