\u3000\u3000 Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) (300760)
Event: on January 19, 2022, the company issued the employee stock ownership plan for Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) 2022 (Draft). A total of 3048662 shares of RMB 1 billion previously repurchased are intended to be used for the employee stock ownership plan. The participants are the company’s core technical or business personnel, the total number of participants is no more than 2700, and the employee subscription price is RMB 50 / share.
Comments:
The equity incentive plan accurately binds the middle-level core employees. The source of equity incentive shares is the company’s repurchase of shares, with a total of no more than 3048662 shares, accounting for 0.2508% of the company’s total share capital, and the subscription price of employees is 50 yuan / share. The employee stock ownership plan does not involve the company’s directors, supervisors and senior managers. The incentive objects are the company’s core technology or business personnel, and the total number of participants does not exceed 2700. These core technology or business personnel are the backbone to promote the healthy and orderly development of the company’s business. The lower shareholding cost is conducive to reduce the financial burden of employees, effectively combine the personal career planning and income improvement of the core backbone with the development of the company, and better stimulate the organizational vitality and talent potential.
The performance appraisal objectives highlight the company’s confidence in long-term development. The employee stock ownership plan is unlocked in three phases. The unlocking time points are 12 months, 24 months and 36 months after the transfer of ownership, and 1 / 3 of each phase is unlocked. The performance assessment objective is to achieve a compound growth rate of 20% of net profit in 22-24 years after deducting incentive amortization, and the corresponding expenses to be amortized in 22-25 years are expected to be RMB 387 million, 306 million, 140 million and 36 million. However, the incentive expenses do not affect the performance objectives. For example, excluding the share based payment expenses to be amortized, the actual growth rates of net profit in 22-24 years are 24%, 23% and 21% respectively. Through this incentive, the company, shareholders and core employees will achieve three wins.
Profit forecast: we estimate that the company’s operating revenue from 2021 to 2023 will be RMB 252.7/310.6/37.43 billion respectively, with a growth rate of 20.2% / 22.9% / 20.5%, net profit of RMB 83.1/99.7/12 billion respectively, with a growth rate of 24.8% / 20.0% / 20.4%, and corresponding PE of 49 / 41 / 34x respectively.
Risk factors: China’s repeated epidemic, the policy of centralized purchase of medical devices and consumables exceeding expectations, and the risk of trade friction.
