\u3000\u3000 Cabio Biotech (Wuhan) Co.Ltd(688089) (688089)
Event: the company issued the 2022 restricted stock incentive plan (Draft), and the number of restricted shares to be granted was 1.8 million, accounting for 1.50% of the total share capital of the company at the time of announcement of the draft incentive plan. Among them, no more than 1.6 million shares are granted for the first time, and 200000 shares are reserved. The grant price (including reserved grant) is 29.26 yuan / share. The granting date shall be determined by the board of directors after the incentive plan is deliberated and approved by the general meeting of shareholders of the company. The incentive objects who meet the grant conditions of the incentive plan, after meeting the corresponding attribution conditions, will obtain the additional A-share common shares issued by the company in installments at the grant price. There is no lock up period after the vesting of the granted shares of the restricted stock incentive plan.
The first equity incentive plan was released after listing, and the incentive objects are mainly technicians
There are no more than 48 incentive objects granted for the first time in this incentive plan, accounting for about 12.83% of the company’s total 374 employees in 2020, including 1) 7 directors & senior managers serving in the company; 2) 3 core technicians; 3) 38 middle managers and core technical (business) backbone personnel. According to the announcement of the company, a total of 920000 shares are granted to technical related personnel, accounting for 58% of the total granted (except the reserved part). The company is in a multi-disciplinary technology intensive industry. The continuous updating and iteration of technology and products leads to fierce competition among companies in the industry and high demand for talents. The company’s core team undertakes the important task of continuous R & D and innovative development. Providing competitive incentives is an effective way to ensure the stability of existing talents and attract diversified talents to join the company. We believe that this incentive plan will effectively enhance the company’s strength related to technology R & D and lay a foundation for the company’s sustainable development and rapid performance growth in the future.
The performance assessment requires that the total revenue CAGR in the next three years is about 25%, and the growth potential is worth looking forward to
According to the announcement of the company, the incentive plan is granted in three times, and the proportion of the number of vested interests in the total granted interests is 30% / 30% / 40% respectively. The assessment year is three fiscal years from 2022 to 2024. The performance assessment at the company level requires taking the company’s operating revenue in 2021 as the performance base, using the cumulative value of revenue, and the trigger value is the revenue growth rate of 15% / 160% / 340%; The target value is 25% / 180% / 380%. We believe that this incentive plan assessment puts forward the target requirement of CAGR of about 25% for the company’s total revenue growth in the next three years, reflecting the company’s confidence that the future performance will enter the fast growth track.
Profit forecast & investment suggestion: it is estimated that from 2021 to 2023, the company will achieve revenue of 350 / 504 / 829 million yuan, net profit of 138 / 193 / 364 million yuan, corresponding to EPS of 1.15/1.61/3.03 yuan / share. As the leader of ARA, DHA and SA in China, the company provides high-quality nutrient products and innovative solutions for customers in the field of global nutrition and health through sustainable microbial synthesis and manufacturing. It is expected to benefit three major industries from 2022 β Factors: 1) the new national standard opens up the demand space for the addition of Chinese infant powder; 2) The international market accelerates the pace of development with the expiration of DSM patents; 3) Bird’s nest acid food + cosmetics have great market application potential. Maintain the “buy” rating.
Risk warning: risk of high customer concentration, food safety and product quality control / safe production / price fluctuation of raw materials and energy / risk of relatively limited product market capacity, risk of signing relevant agreements with DSM, risk of core competitiveness
