The company is the leading company in the rail transit electrical industry, benefiting from the domestic subway, railway high-speed construction and rail transit "Belt and Road Initiative" strategy. It is proposed to implement the restricted stock incentive plan, and the total number of restricted shares to be granted to the incentive target is 4.42 million shares, accounting for about 1.63% of the total share capital of the company. The grant price is 9.21 yuan. The industry is improving, the company's layout is reasonable, and the team is excellent. The corresponding PE and PB of 16 years are 43.6,5.6 respectively, maintaining the "highly recommended-A" investment rating.
This incentive is the first stock incentive to employees after the listing of the company, which has a positive effect on the development and performance of the team. The company intends to implement a restricted stock incentive plan, and the total number of restricted shares to be granted to the incentive target is 4.42 million shares, accounting for about 1.63% of the company's total share capital. The grant price is 9.21 yuan. The company's performance conditions for unlocking restricted stocks are as follows: based on 2016 operating income, the growth rates of operating income in 2017, 2018 and 2019 are not less than 10%, 21% and 33% respectively compared with 2016. (does not include mergers and acquisitions).
The rapid growth of the subway industry is good for the business of the parent company. The 13th five-year Plan is expected to invest 3.5-3.8 trillion yuan, an increase of nearly 25-35% over the 12th five-year Plan (2.8 trillion), including nearly 3 trillion yuan in infrastructure investment, nearly 43% higher than the 12th five-year Plan (2.1 trillion). At present, more than 50% of the company's operating income comes from the urban rail subway industry, and from the execution of the contract, the proportion of subway business will rise to more than 70% in the next three years.
Business income entered the confirmation peak, and new orders increased significantly in the single quarter. The company's Q3 achieved an operating income of 118 million, an increase of 29.54% over the same period last year. Since the second half of this year, orders have entered the peak period of delivery. With the increase of subway investment and the strengthening of the company's expansion in the subway field, Q3 increased its orders by 310 million in a single quarter in 2016, returning to rapid growth.
The merger and acquisition of Germany to keep the rich is in line with the national "Belt and Road Initiative" development strategy. After the completion of the merger and acquisition, the company's business in the rail transit industry has expanded from power secondary equipment to primary equipment, and the volume of revenue will also be tripled.
The company's management team has worked hard in the rail transit industry for many years, has more than ten years of business cooperation with Baofu, is optimistic about the localization of the company's business integration, and goes out relying on the global resources of Baofu.
Maintain the "highly recommended-A" investment rating. The industry is improving, the company's layout is reasonable, and the team is excellent. The corresponding PE and PB of 16 years are 43.6,5.6 respectively, maintaining the "highly recommended-A" investment rating.
Risk hint: rail transit investment does not meet expectations, M & An integration does not meet expectations.