I. Overview of events
Recently, Jiuqi software issued a draft of equity incentive: the number of restricted shares to be granted by the company is 8 million shares, accounting for 1.1369% of the total share capital of the company, and 7.2 million shares are granted for the first time, accounting for 1.0232% of the total share capital of the company. the number of incentive targets granted for the first time is 347.
II. Analysis and judgment
Issue the draft equity incentive plan to fully mobilize the enthusiasm of the core backbone members
1. According to the draft equity incentive issued by the company, the number of incentive targets granted for the first time is 347, including the company's middle managers and core technical / business backbones; the number of restricted shares to be granted by the company is 8 million shares, accounting for 1.1369% of the company's total share capital; 7.2 million restricted shares are granted for the first time, accounting for 1.0232% of the company's total share capital. 800000 restricted shares are reserved, accounting for 10% of the total restricted stock grant and 0.1137% of the total share capital of the company at present.
2. The sales restriction period shall be 12 months from the date on which the restricted stock is granted to the incentive object to complete the registration of the grant. The third phase is unlocked, and the annual unlocking rate is 40%, 30%, 30%. Two-level assessment: at the corporate level, the three unlocking periods are all based on 2016, and the revenue growth from 2017 to 2019 is not less than 30%, 50% and 70%. At the individual level, if the individual passed the previous year, the current part can be unlocked. If the unqualified part is not released, it can be repurchased and cancelled according to the granted price.
3. We believe that the company's equity incentive draft will cover a large number of employees, which will fully mobilize the enthusiasm of managers and core technical personnel and lay a foundation for the long-term development of the company.
Based on e-government and group control, digital communication business is expected to expand.
1. Intensive cultivation in the field of e-government and full blossom in important areas. The company has layout in many aspects, such as finance and taxation, statistics, transportation, justice, people's livelihood and so on, especially in the transportation and judicial industry.
2. The group management and control business shows considerable growth and will maintain a steady pace in the future. Following the characteristics of the financial management industry of group enterprises, the company provides differentiated and customized software products and industry big data solutions for large customers in different industries, and successfully solves the pain points of customer demand.
3. The extension enters the field of digital communication and integrates to form the brand of "long-term digital communication". In 2016, the company acquired Ruiyi constant Motion, a manufacturer specializing in social marketing, and combined it with Ericsson Technology and Jiuqi Zhitong into "long-term Digital Communication". Successfully integrated the company's mobile marketing, brand overseas, social marketing and big data analysis and other businesses.
4. We believe that the company has a solid foundation of traditional business, stable growth of operating income and profits, and good momentum of performance development. under the trend of government information, the company is expected to rapidly increase its market share in the fields of transportation and justice. Extension into the field of digital communication, the business is expected to increase in volume, laying a solid foundation for sustained growth in performance.
Third, profit forecast and investment suggestions
It is estimated that the EPS of the company from 2017 to 2019 is 0.42 yuan, 0.64 yuan and 0.76 yuan respectively, and the corresponding PE of the current stock price is 29x, 19x and 16x respectively. Based on the strong stickiness of government and enterprise customers and the steady growth of traditional business, as well as the huge room for integrated digital communication business growth, the company was given 35-40 times PE in 2017 and a reasonable valuation of 14.7-16.8 yuan in the next six months, maintaining the company's "highly recommended" rating.
Fourth, risk tips:
Policy promotion is not as expected; the speed of technology research and development is not as expected; business integration is not ideal.