\u3000\u3000 Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) (300760)
Events
On January 19, the company released the 2022 shareholding plan. The participants are the company’s core employees or technical backbones. The total number of participants is no more than 2700. The shares come from Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) a ordinary shares repurchased by the company, with a total of no more than 3048662 shares, accounting for about 0.25% of the company’s total share capital. The total repurchase amount is about 1 billion yuan, and the employee subscription price is 50 yuan / share.
Comments
The equity plan shows the company’s confidence in development. The company issued the 22-year employee stock ownership plan, and the participants are the core employees and technical backbones of the company; The total number of participating employees shall not exceed 2700; The incentive for core personnel and technical personnel is in place and covers a wide range, which reflects the company’s attention to core employees and R & D personnel, helps to improve employees’ work enthusiasm and highlights the strong upward driving force of innovative enterprises. The purchase price of ESOP is 50 yuan / share.
Unlocking conditions: the compound growth rate of three-year performance is 20%. The shares are unlocked in three batches, one third of which are unlocked each time. The performance target of the first batch is that the net profit attributable to the parent company in 2022 will increase by no less than 20% compared with 2021; The growth rate of the second batch of 2023 net profit attributable to the parent company shall not be less than 44% compared with 2021, that is, a year-on-year increase of 20% in 2023; The growth rate of the third batch of 2024 net profit attributable to the parent company is no less than 73% compared with 2021, that is, a year-on-year increase of 20% in 2024. The company shall confirm that the total cost is expected to be RMB 870 million, and the cost amortization is expected to be RMB 387 million, RMB 306 million, RMB 140 million and RMB 36 million from 2022 to 2025. After excluding incentive expenses, the net profit attributable to the parent company from 2022 to 2023 increased by 24%, 23% and 21% respectively. The profit target of high year-on-year growth shows the company’s confidence in development.
Business development has clear levels and steady rhythm. The company’s life and information support business is expected to benefit from the incremental opportunities brought by the global new infrastructure and the performance rebound brought by the recovery of conventional business. The high-end field of medical imaging business company is expected to continue to penetrate and achieve healthy growth. The promotion of four pillar new products in IVD business: blood cell, biochemistry, luminescence and coagulation was accelerated. In addition, emerging businesses such as animal medicine, minimally invasive surgery, AED and orthopedics have great development potential, which brings new impetus to the long-term sustainable development of the company.
Profit adjustment and investment suggestions
We continue to be optimistic about the company’s innovation strength and long-term value, and do not consider the merger and acquisition of haipeptide biological profit consolidation. It is expected that the company’s net profit attributable to the parent company in 21-23 years will be 8.022 billion yuan, 9.658 billion yuan and 11.679 billion yuan respectively, with a year-on-year increase of 20%, 20% and 21% respectively. Maintain the “buy” rating.
Risk tips
Business expansion is less than expected risk, procurement policy risk, M & A integration management risk, etc.
