\u3000\u3000 Oppein Home Group Inc(603833) (603833)
Implement the employee stock ownership plan and fully mobilize the enthusiasm of the core team. The company announced that it plans to purchase the company’s shares through the secondary market to implement the first phase of excellent employee stock ownership plan. The total capital of the stock ownership plan shall not exceed 70 million yuan, the employee salary in the capital source shall not exceed 35 million yuan, and the loan provided by the controlling shareholder Mr. Yao Liangsong shall not exceed 35 million yuan. The total number of people participating in the stock ownership plan this time is no more than 230, including no more than 7 directors, supervisors and senior managers of the company. The upper limit of holding shares is 8.5 million, accounting for no more than 12.14% of the stock ownership plan. The upper limit of holding shares of other core employees is 61.5 million, accounting for no more than 87.86%. Based on the upper limit of the scale of the employee stock ownership plan of 70 million yuan and the closing price of the company on January 21, 2022 of 140.9 yuan / share, the upper limit of the company’s shares that can be purchased by the employee stock ownership plan is about 496800 shares, accounting for about 0.08% of the current total share capital of the company. This is expected to fully mobilize the enthusiasm of the core team, deeply bind interests and share the development achievements of the company, which is conducive to further improving the talent incentive system and attracting and retaining excellent employees for the long-term development of the company.
The total amount of convertible bonds raised is adjusted to no more than 2 billion yuan, which is planned to be used for Wuhan intelligent manufacturing project. On October 28, 2021, the company announced the plan for issuing convertible bonds, which plans to raise 3 billion yuan. On January 25, 2022, the company announced that the total amount of convertible bonds will be adjusted to 2 billion yuan for the construction of Wuhan intelligent manufacturing project. The total investment of the project is 2.5 billion yuan, and the insufficient funds will be raised by the company itself. The construction period of the project is 3 years, including kitchen cabinet, wardrobe, wooden door, bathroom and other full category production lines and supporting facilities.
Improve the national production capacity layout to meet the strong demand in Central China. Central China is an important sales market of the company. The revenue in 2018-20 was 1.24/13.8/1.58 billion yuan, accounting for 10.95% / 10.31% / 10.92% respectively. Previously, the demand in Central China mainly depended on the existing four bases of Chengdu, Qingyuan, Wuxi and Tianjin. After Wuhan base is put into operation, it will greatly shorten the order delivery efficiency in Central China and surrounding areas, reduce the cost of long-distance transportation and reduce cargo damage.
Pay attention to digital and information technology, steadily promote the intelligent manufacturing strategy and improve the long-term core competitiveness. The company always attaches importance to the use of digital and information technology to enable production and manufacturing. The independently developed CAXA whole process information system realizes the series connection from the front-end product design, order formation, order review, order quotation and order deduction to the back-end order production scheduling, organization of production and finished product shipment. The application of information technology continues to improve the end consumption experience, shorten the production cycle and improve production efficiency. Based on industry 4.0, Huazhong intelligent manufacturing base will introduce advanced flexible and intelligent production lines in the industry, combined with the information system independently developed by the company, realize the automation and intellectualization of the whole business process from product design, raw material procurement, production preparation, product manufacturing, sorting and packaging to warehousing and transportation, and further expand the company’s advantages in the field of intelligent manufacturing, Enhance the company’s long-term core competitiveness. Profit forecast and rating: the company started from the overall kitchen cabinet business. After years of continuous product expansion, it has become a comprehensive customized home provider integrating kitchen cabinets, wardrobe, bathroom and customized wooden doors. We are optimistic about the long-term dimension of industry penetration and the increase of market share of leading companies. It is estimated that the net profit attributable to the parent company of 21-23 companies is RMB 2.747/31.96/3.714 billion respectively, with a year-on-year increase of + 33.19% / + 16.36% / + 16.18%, and the corresponding PE is 31x / 27x / 23x respectively, maintaining the “buy” rating
Risk warning: the ESOP still needs to be approved by the general meeting of shareholders; The delivery of the property is less than expected; Price fluctuation risk of raw materials; The promotion of Omni channel layout is less than expected; Industry competition intensifies.
