Event: the company issued a 2022 restricted stock incentive plan, the number of restricted shares to be granted under the incentive plan is 4.0262 million shares, accounting for about 3.00% of the company's total equity of 130 million shares.
Among them, 3.221 million restricted shares are granted for the first time, accounting for about 2.40% of the company's total share capital of 130 million shares, accounting for 80% of the total number of restricted shares to be granted under this incentive plan; 805200 restricted shares are reserved, accounting for about 0.60% of the company's total share capital of 130 million shares, accounting for 20% of the total number of restricted shares to be granted under this incentive plan.
Incentive object: a total of 118 people, including senior managers and core staff who served in the company (including subsidiaries) when the company announced this incentive plan. Award price: 12.21 yuan per share.
The company-level performance evaluation target of the restricted stock awarded for the first time: on the basis of 21-year operating income, the annual revenue growth rate in 22-23-24 is not less than 30%, 60%, 90%, that is, in 22-23-24, the annual average annual growth rate is not less than 30%, 23%, 19%, 19%, and the CAGR is 24% in 2021-2024.
The reservation part is divided into two categories. The first is granted before September 30, 2022 (including September 30, 2022). The assessment target is based on 21-year operating income, and the annual revenue growth rate in 22-23-24 is not less than 30%, 60%, 90%, that is, in 22-23-24, the average annual growth rate is not less than 30%, 23%, 19%.
The second is granted after September 30, 2022, and the assessment target is based on 21-year operating income, with a 24-year revenue growth rate of not less than 60% and 90%, that is, a 24-year average annual growth rate of not less than 23% and 19%.
In addition, the company has performance appraisal requirements at the personal level, and the proportion of individual lifting restrictions is A (100%), B (80%), C (60%) and D (0%). On the premise that the company's performance goals are achieved, the amount of sales restrictions that can be lifted by individuals in the current year = the amount of sales restrictions that individuals plan to lift in the current year x the proportion of individual sales restrictions.
Investment suggestion
The company's equity incentive plan provides a higher target for revenue growth in the medium term. We believe that, on the one hand, the company is the leader in the domestic clean electrical hoses and accessories industry, relying on technology and product advantages to serve B-end high-quality customers for a long time, adopting leading technology and creating scale advantages to reduce costs and increase efficiency.
On the other hand, through the acquisition of vacuum cleaners at home and abroad, the company is expected to have stable revenue growth and good cash flow in the long term. With the steady increase in the scale of clean electrical hose business and the further release of machine production capacity, the performance is expected to grow further. We will not adjust the previous profit forecast for the time being. It is estimated that the company's net profit for 2021-2023 will be 1.5 × 2.2 billion yuan, respectively, and the corresponding dynamic valuations will be 22x, 15x and 11x, respectively. Maintain a "buy" rating.
Risk tips: raw material price fluctuation risk; market competition risk; alternative product risk; exchange rate risk; OEM permeability is lower than expected, etc.
