\u3000\u3000 Oppein Home Group Inc(603833) (603833)
The company launched the first phase of excellent employee stock ownership plan to 230 employees within the company with a total capital of no more than 70 million yuan, which binds the interests of the company and core employees. The company continues to expand product channels. We are optimistic about the company’s performance. Driven by a series of incentives, we maintain high growth rate and buy rating.
Key points supporting rating
Launch employee stock ownership plan, based on long-term development. The total capital of the employee stock ownership plan does not exceed 70 million yuan, of which the legal salary of the company’s employees and the loans provided by Yao Liangsong, the controlling shareholder and chairman of the board account for 50% respectively. The number of holders of the plan is about 230, of which the number of directors, supervisors and senior managers is no more than 7, which is expected to account for 12.14% of the proportion of the plan, and other core employees account for about 87.86%. The duration of this plan is 36 months, and the lock-in period is 12 months after the last share is transferred to the employee stock ownership plan.
Continuously promote incentives, enhance the cohesion of core business personnel, and look forward to long-term development. The company launched the equity incentive plan in July 2021. The incentive target is that the net profit from 2021 to 2023 will not be less than RMB 2.39/27.5/3.16 billion respectively, with a year-on-year increase of 16.0% / 15.0% / 15.0%. After half a year, the company launched the employee stock ownership plan, half of which came from the chairman’s loan. This is expected to improve the cohesion and motivation of the company’s core business personnel, bind the interests of the company and 230 core business backbones, and reflect the concept of common growth of the company and talents. We are optimistic that the company can continue to grow.
Multi dimensional advantages ensure development and firmly value the growth toughness of the company. The company relies on the leading position of kitchen cabinets and the rapid and large-scale growth of wardrobe to maintain high income and profit growth. It is estimated that in 2021, the revenue will reach 19.899-21.373 billion yuan, with a year-on-year increase of 35% – 45%, and the net profit attributable to the parent company will reach 2.640-2.846 billion yuan, with a year-on-year increase of 28% – 38%. We believe that the pressure on the industry is a good opportunity for leading enterprises to accelerate the increase of market share, and we are firmly optimistic about the growth toughness of the company. The company is expected to give full play to its unique advantages in marketing, channel and supply chain. The multi product channel expansion strategy is expected to be implemented smoothly under the promotion of equity incentive and employee stock ownership plan, so as to further improve the market share and consolidate the leading position in the industry.
Valuation
Under the current share capital, the earnings per share from 2021 to 2023 are expected to be 4.50/5.52/6.64 yuan respectively; The P / E ratio is 31 / 26 / 21 times respectively. Maintain buy rating.
Main risks of rating
Industry competition intensifies, the expansion of new products does not meet expectations, and the price of raw materials fluctuates.
