Event: the company disclosed its mid-2022 report that its operating income in the first half of the year was 2.352 billion yuan, an increase of 2.53% over the same period last year; its net profit was 227 million yuan, up 12.96% over the same period last year; and its non-net profit was 225 million yuan, an increase of 26.14% over the same period last year. The comments are as follows:
The stable operation is improving, and the increase in exchange benefits makes the profit growth faster than the income growth rate. 1) both internal and external, Q2 performance increased by 34.71%. Single Q2 realized operating income of 1.214 billion yuan, a decrease of 1.08% over the same period last year, and net profit of 131 million yuan, an increase of 34.71% over the same period last year. In terms of external circulation, the company continues to cultivate overseas markets, layout retail channels, and accelerate the development of overseas bases in Thailand to build Lin; in terms of internal circulation, the company actively opens up the domestic market and increases the market strategic layout such as "real estate hardcover, brand upgrading, and health care industry", showing market development potential. 2) the increase of exchange benefit makes the net interest rate improve. Year-on-year change in gross profit margin / net profit margin-0.94pct/0.89pct to 23.41% pesque 9.66%, gross profit margin / net profit margin reached 24.05% / 10.79% respectively in the second quarter, an improvement compared with the first quarter. In the first half of the year, the company's financial expenses decreased by 444.64% compared with the same period last year, mainly due to the increase in exchange benefits. 3) the quality of operation is good. In the first half of the year, the net cash flow of the company's operating activities was 270 million yuan, an increase of 361.11% over the same period last year, mainly due to the increase in cash received from the sale of goods and services.
Equity incentive sets a higher growth target, and the exercise price is 13.78 yuan, which is higher than the current stock price.
In November 2021, the company issued a 2021 stock option and restricted stock incentive plan (draft), which intends to grant a total of 5 million shares to the incentive object, involving RMB A common shares, accounting for about 1.12% of the company's total share capital at the time of the announcement of this incentive plan. The exercise price of the stock options granted under this incentive plan is 13.78 yuan per share, and a total of 60 people are granted for the first time, including directors, senior managers, core and backbone personnel and other personnel that the board of directors deems necessary to encourage. The evaluation year of this incentive plan is three fiscal years from 2022 to 2024. The annual performance evaluation targets of the first granted stock options are respectively based on the company's 2021 net profit, and the growth rate of net profit in 2022, 2023 and 2024 is not less than 20%, 35% and 45%. Assuming that the company grants incentive stock options for the first time in early December 2021, the cost amortization expenses of stock options granted from 2021 to 2024 are 11.22,129.72, 72.38 and 323100 yuan, respectively.
Investment advice: income increases steadily, foreign exchange benefits thicken performance, maintain overweight rating. It is estimated that the company's net profit from 2022 to 2024 will reach 4.5,5.1 and 550 million yuan respectively, an increase of 20%, 12% and 8% over the same period last year, corresponding to the PE valuation of 12, 10 and 10 times. The company focuses on and deeply ploughs the large health industry to build a diversified development pattern such as "healthy family life", "commercial engineering", "intelligent customization" and so on. To "technology-driven, healthy development, brand precision" three-wheel drive as the development strategy, fund-raising projects to release capacity increment space.
Risk tips: intensified competition in the industry; raw material price fluctuation risk; downstream demand downturn risk; market demand lower than expected risk; real estate regulation risk; growth risk after fund-raising project is put into production.