Items:
Yaxia issued the fourth phase of the employee Stock ownership Plan (draft): the total number of employees participating in this employee stock ownership plan does not exceed 21, and the number of underlying stocks involved does not exceed 16.92 million shares, accounting for 1.26% of the total share capital of the company before the release of the plan. the purchase price is 3.63 yuan per share, and the total amount of funds raised does not exceed 61.4196 million yuan. At the company level, the target net profit from 2021 to 2023 is 5.20,7.28 and 1.02 billion yuan respectively.
Comments:
The employee stock ownership plan encourages core talents to demonstrate confidence in assembly business development. The company issued the fourth Phase employee Stock ownership Plan (draft) on the evening of September 27, 2021, in which the total number of employees participating in the plan does not exceed 21, including 8 directors, supervisors and senior managers, and no more than 13 other personnel. the number of underlying shares involved is not more than 16.92 million shares, accounting for 1.26% of the total share capital of the company before the release of the plan, the purchase price is 3.63 yuan per share, and the total amount of funds raised does not exceed 61.4196 million yuan. The duration of this employee stock ownership plan is not more than 72 months, and the lock-up period is 12 months. In terms of assessment indicators, the company sets performance evaluation indicators at the corporate level and individual level, in which the corporate level, the target net profit from 2021 to 2023 is 5.20,7.28 and 1.02 billion yuan respectively. This employee stock ownership plan helps to maintain the stability of the company's core talents, protect the core strategy of "architectural decoration industrialization", and demonstrate confidence in business development.
Revenue remains high, and impairment losses affect performance: the company's 2021H1 achieved 5.308 billion in revenue, + 36.77% in the same period last year, and 99 million in net profit,-18.39% in the same period last year. From a quarterly point of view, the growth rate of Q1-Q2 income is + 30.62% and + 40.55% respectively, and the performance growth rate is + 25.62% and-54.67% respectively. Q2 alone accounts for 106 million of credit impairment losses and asset impairment losses, resulting in Q2 performance of only 30 million. According to the type of business, the revenue of the main building decoration was 3.149 billion, which was + 17.93% compared with the same period last year. Curtain wall decoration, intelligent system integration, decorative products and design contracts all increased by 92.96%, 59.57%, 56.07% and 39.73% respectively over the same period last year.
In terms of orders, the company signed 9.275 billion yuan in new orders in the first half of the year, + 18.90% compared with the same period last year, of which the order for public clothes increased rapidly, from + 24.21% to 5.9 billion yuan.
Firm industrialization core strategy, restructuring + foreign investment to consolidate the industry leading position: 1) industrialization priority, firm industrial reform: the company takes "architectural decoration industrialization" as the core strategy, the newly established prefabricated decoration department, the future will be EPC mode to send a large number of projects and overseas markets, and strive to through the 2018-2022 five-year efforts to stabilize the leading position in the industry. 2) restructuring + foreign investment to enhance competitiveness: reorganize the first-class qualification of Zhejiang Shunyi construction general contracting subsidiary to enhance EPC general contracting capacity; invest 80 million yuan to set up future construction science and technology with related companies to promote the development strategy of industrial assembly decoration industry. 3) increase R & D, empower long-term development: the company started the road of industrial decoration R & D in 2012, issued six enterprise standards in 2020, and continued to promote the secondary development of industrial software.
Profit forecast, valuation and investment rating: the goal of the company's incentive plan is clear, and industrial decoration is expected to enter the volume stage. We raised the company's EPS for 2021-2023 to 0.40,0.55,0.80 yuan (the original value is 0.40,0.50,0.63 yuan), corresponding to 18x, 13x and 9x respectively. Industrial decoration prosperity is high, the company is a leading enterprise in the industry, technology and brand advantages are far ahead, giving the company a valuation of 35 times in 2021, the target price of 14 yuan per share, maintaining a "strong push" rating.
Risk hints: industrial decoration is less than expected, real estate regulation is higher than expected, and the growth of bad debt losses is higher than expected.