On May 23, 2023, I really want you to announce the 2023 Equity Incentive Plan.

Key points of investment

Equity incentives have finally been implemented, demonstrating confidence in long-term development

The incentive plan plans to award 1.03 million restricted shares. The incentive targets include President Zhang Jingwei, President Wang Shuai, and Dou Yanyan, and a total of 177 people, with a grant price of 4.03 yuan/share. Assessment requirements: Based on 2022, the amount after deduction on the revenue side increased 15%/30% compared to 2022 compared to 2023/2024; on the net profit side (value attributable to shareholders of listed companies and after excluding the impact of incentive costs generated by the company's implementation of incentive plans such as equity incentive plans during the assessment period of this incentive plan), 2023/2024 is a positive number/not less than 0.3 billion yuan. The total cost of this equity incentive was 379.15,500 yuan, and the amortization expenses for 2023-2025 were 1421.82/189576/47394 million yuan respectively. Equity incentives were finally implemented, deeply tied to the interests of core employees, and further stimulated business vitality.

The basic market for red dates is stable, and products+channels continue to improve

The company has optimized and adjusted its product structure this year, streamlining SKUs, and focusing on promoting the incremental business of the strategic single Pinhong Xiaopai and Dou Feifei. Red Xiaopai is a new generation of health snacks, and Dou Feifei is an innovative breakthrough in the bean flower category, pioneering the company's second growth curve, driving steady growth in performance. In the future, the company will continue to focus on the “top 13 innovations” and adhere to the “high-end red dates miss you” brand positioning. I hope your main brand will focus on high-end red dates. The sub-brand represented by MISS YOU will accurately position health supplements. Multiple brands will lay out the “red dates plus healthy frozen food” product matrix to achieve stable development of stock products through the action path of “one minus two plus three liters”; develop omnichannel products in terms of incremental products; develop billion-level products in terms of new product reserves; develop red jujube products, freeze-dried fresh, healthy and nourishing products. Adhere to the all-round optimization of the channel system, accelerate the deployment of new retail channels to empower new retail channels, increase investment in omni-channel live streaming online, and use channels such as supermarkets, convenience stores, and snack franchise stores to set up direct-run specialty stores outside the province in key cities such as Beijing, Shanghai, and Hangzhou to create benchmark flagship stores.

Profit forecasting

According to equity incentive requirements, we raised the 2023-2025 EPS to 0.01/0.07/0.11 yuan (previous values were -0.1/0.02/0.07 yuan respectively). The current stock price corresponding to PE was 964/115/74 times respectively, maintaining the “buy” investment rating.

Risk warning

Macroeconomic downturn risks, rising raw materials risks, new product growth falling short of expectations, etc.