On September 3, 2021, the company disclosed the 2021 equity incentive plan (draft), which proposes to grant 2.05 million stock options to incentive targets, with a total of 51 people, accounting for 0.11% of the total share capital on the date of the announcement, and the exercise price is 28.51 yuan per share. the assessment target of the equity incentive plan is that the operating income in 2021-2023 is not less than 100 million yuan, and the net profit is not less than 228,90,351 million yuan respectively. We believe that this move will not only further mobilize the enthusiasm of core talents, including the new business department, but also demonstrate the company's confidence in long-term development. Give the company 2022 25xPE, raise the company's target price to 46 yuan, and maintain the "buy" rating.
Assessment indicators include revenue-performance, long-term growth is guaranteed. On September 3, 2021, the company disclosed the 2021 equity incentive plan (draft). The assessment target of this equity incentive plan is that the operating income in 2021-2023 will not be less than 100 million yuan in 30-40-50, and the net profit will be based on the net profit in 2020. the growth rate in 2021-2023 will be no less than 35x65x100%, and the net profit in 2021-2023 will be 2.28pm 2.90 / 351 million yuan respectively. The corresponding growth rate in 2021-2023 is 35.00-22.22-21.21% respectively.
The incentive target covers the core talents, and the enthusiasm of the management team and backbone is further strengthened. This equity incentive plan plans to grant 2.05 million stock options to the incentive targets, accounting for about 0.11% of the total share capital on the date of the announcement. Among them, 184.50 million copies were granted for the first time, and 2.05 million copies were reserved. The incentive objects involved in the first award are the company's directors, senior managers, core backbone and key personnel of the new business department, with a total of 51 people, with an exercise price of 28.51 yuan per share. We believe that this move will not only further mobilize the enthusiasm of the company's management team and key staff, but also demonstrate the company's determination to develop in the new division.
Future prospects: steady expansion of traditional business, high-tech business to create new growth points. In terms of traditional business, in the second half of this year, the new production capacity mainly comes from PVC tape original film Calendering line and the second BOPP film drawing line, while the Vietnam base has been put into use in July. Next year, including three or four BOPP film drawing lines and other production lines and technical renovation projects will be completed and put into production according to the plan. As the new production line reaches production one after another, the market share of the company's civil tape will be further increased. At the same time, relying on the synergy of the existing industrial chain, the company will continue to promote high-tech business:
(1) the automobile wire harness tape has been supplied to the primary and secondary suppliers of the mainframe factory, which meets the requirements of the domestic mainframe factory; (2) the degradable tape project is expected to be put into production in 2023 and has been included in the Shun Feng Reserve Depot; (3) the GMP certification of medical tape is under way and is expected to be completed in the middle of 2022; (4) New automotive materials, electronic tapes and other products are proofed, sent and tested, and the layout develops in the medium and long term.
Risk factors: the risk of fluctuations in raw material prices; the risk that overseas sales are lower than expected due to the COVID-19 epidemic; the release of new production capacity is not as expected; and downstream demand growth is not as expected.
Investment suggestion: considering the accelerated expansion of the company's traditional business and the gradual landing of the company's medium-and long-term high-end projects, we are optimistic about the company's traditional business expansion advantage + active layout of high-end areas. The leading position of the domestic adhesive tape industry is further strengthened, and short-term performance is expected to achieve a breakthrough. As a result, the net profit forecast of the company in 2021 and 2023 is 265, 342, 000 According to the average PE valuation of the comparable company, the company will be given 25xPE in 2022, corresponding to the target price of 46 yuan, maintaining a "buy" rating.