Event: the company issued a 2021 restricted stock incentive plan (draft), which awarded restricted stock to 350 people, including directors, secretaries, deputy general managers, middle managers and core technical (business) backbone staff. and make provisions for the performance appraisal from 2022 to 2024.
Comments:
Firm confidence in rapid growth, with a compound income growth rate of 51% from 2020 to 2024, a total of 350 people were encouraged, including the company's directors (general manager), secretary Dong (deputy general manager), deputy general manager, middle managers and core technology (business) backbone staff. In addition, some restricted stocks will be reserved and the incentive target will be determined within 12 months. Company-level performance evaluation requirements: operating income in 2022 is not less than 1.3 billion yuan, cumulative operating income in 2022 and 2023 is not less than 3.3 billion yuan, and cumulative operating income in 2022, 2023 and 2024 is not less than 6.3 billion yuan. Assuming that the revenue from 2022 to 2024 is 13 yuan, 20 yuan and 3 billion yuan respectively, the compound growth rate of revenue will reach 51% in 2020-2024.
Lithium battery equipment binds to major customers, extending from testing to chemical subcapacity.
In 2020, revenue reached 575 million yuan, an increase of 57% over the same period last year, and the net profit of returning home was 57 million yuan, an increase of 150.6% over the same period last year. In the first three quarters of 2021, revenue reached 572 million yuan, an increase of 44 percent over the same period last year, and net profit reached 73 million yuan, an increase of 40 percent over the same period last year. The company's lithium equipment is bound to Ningde era, BYD and other major customers. According to the announcement, the company signed purchase orders with Ningde Times from January to August 2021, reaching 424 million yuan, nearly double that of the whole year of 2020. And in the order disclosed by the company in August 2021, the chemical sub-capacity equipment supplied to the Ningde era appeared for the first time, with a total amount of 142 million yuan. This means that the company has made a breakthrough in the vertical extension of the lithium battery rear equipment, further expanding from the testing equipment to the chemical sub-capacity equipment.
Vigorously develop energy storage and charging pile business, create the second growth curve company announced in October 2018 to launch the "new energy vehicle battery intelligent manufacturing equipment and intelligent power station converter control system industrialization project", January 2021 to achieve a fixed increase of 400 million yuan, further invested in the field of energy storage and charging piles. The company has established a joint venture with Ningde Times Fujian Times Nebula Technology Co., Ltd. (CNTE), which collects various resources and the business is progressing smoothly. As of November 2021, it has reached strategic cooperation with many governments to carry out projects such as landing optical storage and charging stations, optical storage and charging intelligent microgrid, and so on.
Investment suggestion: the company's lithium equipment orders continue to grow, and the business of energy storage and charging piles is progressing smoothly. This release of the equity incentive plan binds the interests of core personnel and demonstrates the confidence of high-speed growth. We maintain the company's profit forecast for 21-23, which is 1.27max, 333,363 million yuan, corresponding to EPS 1.886, 2.46, and the current stock price, which corresponds to 21-23 PE, is respectively times that of 61-33-21, maintaining a "buy" rating.
Risk tips: the risk of high customer concentration and the risk of rising raw material prices.