\u3000\u3000 Shanghai Sk Automation Technology Co.Ltd(688155) (688155)
Event: the 2022 restricted stock incentive plan (Draft) was issued on Shanghai Sk Automation Technology Co.Ltd(688155) January 18, 2022. It is proposed to grant 1 million restricted shares, accounting for 1.32% of the total share capital of the company at the time of announcement, including 875200 shares for the first time and 124800 shares reserved. The incentive object is 148 employees, accounting for 6.1% of the company’s number (as of December 31, 2021), and the award price is 108 yuan.
Key investment points
Bind core talents and show confidence in long-term development
The ownership ratio of the two ownership periods of the incentive plan is 50% / 50% respectively. According to the performance evaluation indicators at the company level, the right can be exercised when the income or profit meets one of them. For the first grant part, (1) operating revenue: Based on 2021, the growth rate in 2022-2023 shall not be less than 50% / 100% respectively. If the company’s revenue in 2021 is 1.05 billion yuan according to Soochow profit forecast, the revenue in 2022-2023 shall not be less than 1.575/2.1 billion yuan respectively. (2) Net profit attributable to the parent company: Based on 2021, the growth rate from 2022 to 2023 shall not be less than 50% / 100% respectively. If the company’s net profit attributable to the parent company in 2021 is 123 million yuan according to Soochow profit forecast, the net profit attributable to the parent company in 2022-2023 shall not be less than 185 / 246 million yuan, and the current stock price corresponds to 46 / 35x PE in 2022-2023 respectively.
For the reserved part, if the grant is completed in 2022, the performance evaluation objectives are consistent with the first grant part; If the grant is completed in 2023, the assessment period will be 2023-2024, and the performance goal in 2023 is the same as that of the first grant. The goal in 2024 is: Based on 2021, the growth rate of revenue or net profit will not be less than 200%. If according to Soochow’s profit forecast, the revenue / net profit in 2024 will be at least RMB 3.15/369 billion respectively, corresponding to the current share price PE of 23x.
Profitability: if the operating revenue and net profit attributable to the parent just reach the performance target, the net interest rate from 2022 to 2024 will be about 11.7%.
The total amortization cost of this equity incentive is expected to be RMB 5084900, which will be amortized by RMB 363 / 140 / 60000 from 2022 to 2024 respectively.
Orders were placed at an accelerated pace, with high growth in short-term performance and strong certainty
From the beginning of 2021 to December 12, 2021, the Contemporary Amperex Technology Co.Limited(300750) + Funeng orders announced by the company totaled about 1.56 billion yuan (excluding tax). We expect that the new orders signed in 2021 will reach 2 billion yuan (excluding tax), four times the 2020 revenue (502 million yuan). Sufficient orders ensure the high growth of short-term performance. At present, the automation rate of module and pack line is at the inflection point of improving from low to high, Shanghai Sk Automation Technology Co.Ltd(688155) with the advantage of high automation rate, orders are expected to continue to land.
Raise funds to expand production, break through capacity bottlenecks and help release the company’s performance
In 2020, the company raised 640 million yuan in IPO, of which 240 million yuan was raised in excess, mainly for the construction of Wuhan base (40000 square meters, total investment of 350 million yuan, use of raised funds of 340 million yuan) and Changsha base (40000 square meters, total investment of 350 million yuan, use of raised funds of 170 million yuan). We expect that after 2022q3, the site area of bases in Shanghai, Wuhan and Changsha will increase from the existing 22000 square meters to more than 100000 square meters, and the annual output value will increase from 500 + billion yuan in 2020 to 3 + billion yuan in 2022.
Profit forecast and investment rating: we maintain the company’s net profit attributable to the parent company from 2021 to 2023 as 123 / 261 / 376 million yuan, and the current stock price corresponds to 70 / 33 / 23 times of dynamic PE, maintaining the rating of “overweight”.
Risk tip: the sales volume of new energy vehicles is lower than the market expectation; The improvement progress of automation rate of module + pack line is lower than the market expectation
