\u3000\u3000 Anhui Honglu Steel Construction(Group) Co.Ltd(002541) (002541)
Event: Anhui Honglu Steel Construction(Group) Co.Ltd(002541) announced the employee stock ownership plan (Draft) in 2022. The upper limit of the total funds raised by the employee stock ownership plan is 236 million yuan. Through the limited partnership as the shareholding platform, the total proportion of shares held does not exceed 0.98% of the total share capital of the company.
Comments:
The controlling shareholder provides stock source for block transaction transfer and promises to compensate for investment losses. The stock source of this shareholding plan is the shares transferred by the controlling shareholder of the company, Mr. Shang Xiaobo, through block trading. The specific trading price and pricing basis will be determined according to the stock market conditions and relevant provisions of block trading. The total amount of funds raised by the company’s employees in this employee stock ownership plan does not exceed 236 million yuan. The sources of funds are the legal salary of the company’s employees, self raised funds, interest free loans of the controlling shareholders and other legal and compliance methods. The proportion of the loan part to the self raised funds is no more than 1:1, and the loan period is the duration of the employee stock ownership plan (seven years). Mr. Shang Xiaobo, the controlling shareholder, promises to voluntarily compensate the accumulated losses caused by the partnership’s future reduction of shares. When the partnership sells all its shares within the agreed period, it will compensate the losses at one time according to the accumulated results; The value-added income shall be owned by all partners of the partnership. The shares transferred by the actual controller are used to motivate the core employees, and the actual controller promises to make full compensation, which helps to motivate the work enthusiasm of the participants, make the participants fully enjoy the dividends of the company’s development, and the company’s incentive mechanism is upgraded again.
There are a wide range of participants in the shareholding plan, which is conducive to the long-term and steady development of the company. The upper limit of the total funds raised by the employee stock ownership plan is 236 million yuan, with “shares” as the subscription unit, with each share of 100 yuan, a total of 236 million shares. The employee stock ownership plan uses the limited partnership as the shareholding platform, and the total number of participants is no more than 100, including 10 directors, supervisors and senior managers (including Chairman Wan Shengping, director Shang Xiaohong, general manager Wang Junmin, chief financial officer Zhang Ling, etc.), and no more than 90 other employees. The lock-in period of the employee stock ownership plan is 36 months (from the date when the shareholding platform purchases the company’s shares), during which it is not allowed to transfer its shares of the company in any way. After the expiration of the lock-in period, the proportion of stock reduction each year shall not be higher than 25% of the total number of shares at the time of purchase. The participants in this shareholding plan involve the company’s directors, supervisors, senior managers, technical backbones, general manager of the base, factory director and sales personnel. The incentive scope is relatively wide and there is a three-year lock-in period, which is conducive to the stability of the company’s management team and core business backbones and the long-term and steady development of the company.
Profit forecast, valuation and rating: Anhui Honglu Steel Construction(Group) Co.Ltd(002541) core business is to earn steel structure processing fees, and scale effect and cost control are its core moat. The company’s employee stock ownership plan will help to stimulate the work enthusiasm of participants, help the company’s management team and core business backbone maintain stability, and benefit the long-term and steady development of the company. Maintain the forecast of the company’s net profit attributable to the parent company from 2021 to 2023 of 1.214 billion yuan, 1.508 billion yuan and 1.751 billion yuan. The current price corresponds to the dynamic P / E ratio of about 18x in 2022, maintaining the “buy” rating.
Risk tip: the sharp fluctuation of steel price affects the profitability of the company, the capacity expansion and utilization rate are lower than expected, and the promotion of this employee stock ownership plan is lower than expected.
