Equity incentive + employee stock ownership issued at the same time to strengthen confidence in the future. Jinqiao Information issued an announcement on the evening of February 21, simultaneously launching the 2022 option and stock incentive plan + 2022-2024 employee stock ownership plan.
The performance evaluation condition is based on the 2020 net profit (deducting the non-profit and proposing the equity incentive fee), and the growth rate of the 22,23 and 24-year net profit is not less than 35%, 50% and 70%, respectively.
Bind core talents and focus on innovative business. Specifically look at the two major announcements: 1) the stock option and restricted stock incentive plan are mainly aimed at the middle-level and grass-roots core backbone, and are proposed to grant 133 employees (excluding the director). The options granted and restricted shares accounted for 0.65% and 0.41% of the total share capital respectively. 2) the first 22-year employee stock ownership plan covers a total of 45 people, with an upper limit of 888000 shares, accounting for 0.24% of the total share capital. The core purpose of equity incentive and employee stock ownership plan is to bind backbone talents. Jinqiao is currently going through a critical period of rapid growth of the innovative business cultivated, judicial Saas and judicial block chain are being rapidly promoted, binding the interests of employees will help to ensure the sustained growth of the company's innovative business.
Innovative business leads the revaluation of value, and judicial informationization has a bright future. Judicial Saas business represented by mobile enforcement and judicial block chain and judicial information platform carried out in cooperation with ants are the core of Jinqiao innovation business at present. The compound growth rate of innovation business in 2018-2020 is 101%, and the profitability is better. In the past, the company was recognized by the market as an integrator, but its own business is undergoing changes. In 18-20, the business income of big data and cloud platform was 0.38,0.88 and 152 million yuan respectively, and the gross profit margin of innovative business reached more than 50%, greatly improving the company's profitability.
Investment suggestion: we estimate that the 21-23 year return net profit of the company is 0.98,1.30 and 174 million yuan respectively, and the current market capitalization corresponds to 37,28,21 times PE for 21-23 years. Considering the business attributes of the company, Taiji shares and Donghua Software have strong advantages in the field of government information, so they can choose to be comparable companies of Jinqiao.
At present, under the unanimous expectation of Wind, the average PE of the comparable company corresponding to 21 Saas in 22 years is 35x27 times. Considering the valuation reshaping brought by the company's Saas business and the potential market space for innovative business, Jinqiao's valuation system is expected to usher in a change. We believe that Jinqiao's current valuation still has a lot of room for improvement. Therefore, the "recommended" rating is maintained.
Risk hint: the promotion of new products is not as expected; the impact of the epidemic hinders the implementation of the project; and the intensification of industry competition leads to a decline in gross profit margin.