Main points of investment
The company issued an equity incentive plan to clarify future growth expectations. The company announced on April 6, 2022 that it plans to award 1.249 million shares to 68 incentive targets. It accounts for 1.09% of the company's total share capital at the time of the announcement of the draft incentive plan, and the grant price of the restricted shares of the incentive plan is 23.28 yuan per share. The performance assessment requirements are based on the net profit of 2021, and the growth rate of net profit from 2022 to 2024 is not less than-40%, 90% and 150%. The performance evaluation requirements of the equity incentive plan clearly define the company's growth expectations in the next three years.
The company has become one of the main suppliers of domestic satellite navigation terminals and satellite communication terminals. In the field of satellite navigation, the company is one of the few domestic manufacturers that independently master the core technologies such as navigation antenna, microwave frequency conversion, signal and information processing, etc. The company has the national production and chemical design capacity, can develop satellite navigation receiving terminals, but also has the ability to simulate satellite signal design, research and development of a variety of satellite navigation simulation test equipment. In the field of satellite communications, the company has mastered the core technologies of antenna feed design, radio frequency and microwave, transmission structure and mechanical simulation analysis, inertial navigation and servo tracking. The company's main customers are the scientific research institutes of the main military industrial groups, such as aerospace, aviation, electricity and so on.
The company's satellite navigation products are mainly used in the national defense and military field. In recent years, the company has participated in the development of a number of equipment models, and many products have been finalized and entered the stage of mass production. The company successfully developed missile-borne navigation data link integrated terminal products and applied them to national defense weapons platform, realizing the first breakthrough of private enterprises in this field. Satellite navigation and data link terminals are the core components to improve the accuracy of missiles and the intelligence of weapons, which are in line with the development trend of modern warfare, and are also the key construction direction of the modernization of weapons and equipment in our army.
The company's satellite communication products are mainly used in maritime, civil aviation market and national defense and military fields. The company's satellite mobile ZTO Express products cover all the mainstream frequency bands of satellite communications at present, forming a series of airborne, shipborne and vehicle-borne products, supporting maritime communications, Tiantong system, VSAT system and other satellite communication systems. In addition to the military field, the company's airborne satellite communication system has been recognized by foreign customers.
Investment advice: give a "buy" investment rating for the first time. The company is one of the main suppliers of domestic satellite navigation and satellite communication terminals. The matching models of the products have entered the stage of batch assembly, and the products meet the needs of modern military struggle. The performance guidelines of the equity incentive scheme clearly define the market's expectations for the company's future performance growth, and we believe that the company is expected to usher in a new period of development in the future. We estimate that the EPS of the company in 2021, 2022 and 2023 is 1.22,1.73,2.38 yuan respectively, and the corresponding PE is 50.9,35.9,26.1 times respectively. Give a "buy" investment rating for the first time.
Risk tips: 1. New business development is not as expected. 2. The epidemic affects the stability of the supply chain and the demand of downstream customers.
