Event: the company issued a notice to revise the executive compensation and performance appraisal system, mainly aimed at the company's general manager, deputy general manager, chief financial officer and secretary.
Comments:
Executive performance is linked to company market capitalization and ROE.
1) according to the announcement, the remuneration of the general manager, deputy general manager, chief financial officer and chief executive will be related to the company's performance and external salary level. According to the 2013 annual report, the annual salary of vice president, chief financial officer and Dong Mi is only 130000 yuan, which is significantly lower than that of Tian run Crankshaft and Foda shares, which are listed in their peers. Through this revision of the system, the company's executive compensation is expected to be in line with the market, which will help to fully mobilize the enthusiasm of employees and provide a guarantee for the rapid development of the company's crankshaft industry and the smooth operation of capital in the future. 2) first of all, the performance appraisal is linked to the growth target of the company's market value, accounting for 60%, and the annual special reward is extracted according to 0.5% for the over-standard part, which shows that the company attaches importance to market value management and helps to enhance investors' attention and confidence in the company. Secondly, performance appraisal is linked to weighted ROE, which provides a guarantee for the performance of the company and the interests of shareholders.
Company stock price catalyst
1) the major shareholder Haowu has excellent qualification of mechanical and electrical assets. In addition to benefiting from the development and growth of the controlling shareholder property Group, the company may become the capital platform for the securitization of the automotive electromechanical plate of the property Group; 2) on June 25, Xinjiang Silicon Valley Paradise bought 18.33 million shares of the company from the secondary market. At the same time, the company and three PE companies in Tianjin initiated the establishment of a technology-based SME venture capital fund-Tianjin Fortune Jiaji Investment Partnership (limited partnership), which will be introduced into the Ministry of Science and Technology guidance Fund, which will mainly invest in advanced manufacturing, electronic information, new materials, high-tech services and other emerging industries in the future. In terms of policy, the CSRC intends to cancel the administrative examination and approval of major asset restructuring in addition to backdoor listing, as well as the addition of M & A funds and other M & A payment and financing instruments for listed companies. These will provide convenience and policy guarantee for the company to carry out capital operation smoothly to improve the company's business structure and enhance the company's profitability.
Slightly lower profit forecast and maintain "overweight" rating
We insist on the previous analysis and judgment: the gradual stabilization and improvement of the company's main crankshaft business is a high probability event. At the same time, the revision of the executive compensation system also shows that the company attaches importance to market-oriented management, improve company performance and enhance investment confidence. According to Echai Hongxiang's debt interest exemption and Jilong Dingfu's increased liquidated damages income, this year's non-operating income is relatively low, we slightly downgrade the company's profit forecast, and it is expected that the company will achieve an operating income of 4.46 million 4.90 / 613 million yuan in 2014-16, a year-on-year increase of 0.69 The net profit is 0.41 / 59 million yuan, which is-34.38% 12.99% over the same period last year, and the corresponding EPS is 0.08 soybean 0.09 yuan 0.13 yuan per share, respectively. It is recommended that you keep paying close attention to the "overweight" rating.
