The company announced a draft equity incentive plan, showing confidence in future high performance growth. The company, the former actual controller of Zhuoyi Technology, announced a draft employee incentive plan for 2017, involving both individual and company level performance assessments. To assess the net profit growth rate at the company level, the year-on-year growth rate in 2017 should not be less than 108.33%, the year-on-year growth rate in 2018 should not be less than 85.72%, and the year-on-year growth rate in 2019 should not be less than 50%. Employees carry out assessment ratings. The assessment system for this incentive plan is comprehensive, comprehensive and operable. At the same time, combined with this year's quarterly performance, the high growth in performance indicators assessed at the company level shows the company's strong confidence that it will enter the fast track of development.
Problems left over from history have been digested, and a new starting point for management has arrived
The original actual controllers of Zhuo Yi Technology were Tian Yu and Xia Chuanwu, holding 24.14% and 15.62% of the shares respectively. The two signed a “Joint Control Agreement” to jointly operate the company. Among them, Tian Yu is the company's chairman and director, and Mr. Xia Chuanwu is the company's director and general manager. In 2013, the two-person agreement expired and was not renewed; Tian Yu, the largest shareholder, became the company's single actual controller; in July 2013, Xia Chuanwu became the company's chairman. During this period, Tian Yu reduced his holdings several times, Xia Chuanwu increased his holdings many times, and the actual controller of the company was changed to Xia Chuanwu. A number of company executives also participated actively during this period. Issues left over from the company's equity history have been resolved, and the chairman and relevant management have more say in the company's operations.
Major customers have proper strategies and remarkable intelligent manufacturing capabilities
The company's customers include large Chinese and foreign brands; the accumulation of years of manufacturing and automated production experience has laid the foundation for the company to develop intelligent manufacturing, which is conducive to the company's ability to develop flexible manufacturing. In addition, Zhuobo Robotics, a wholly-owned subsidiary, has set up a robot R&D laboratory to develop high-quality industrial robots. At the same time, the developed robots are used in the company's production activities to reduce the company's production costs, improve product quality, and enhance the company's competitiveness; on the other hand, the company can seize the development opportunities of the current industrial robot market, actively deploy, and reap the dividends of the development of the intelligent manufacturing industry. In the future, Zhuobo Robotics will become the core advantage of the company's intelligent manufacturing platform, ultimately achieving the company's sustainable and stable development!
In-depth cooperation with major customer Xiaomi has led to the rebirth of the Xiaomi crisis. The company has significantly benefited from the company's important supplier partner. Until now, it has cooperated with Xiaomi's Ecological Chain Company to manufacture products such as mobile power banks and Xiaoant smart cameras. It is expected that in the future, it will be upgraded to OEM for Xiaomi's core products (such as mobile phones, etc.). As an important strategic partner of Xiaomi, Zhuo Yi also benefited from an increase in customer terminal product sales. At the same time, with the continuous improvement of the company's internal governance, R&D capabilities and intelligent manufacturing capabilities in recent years, the company expects to have more in-depth cooperation with major customers in other fields, and the product range is expected to gradually expand.
Major customers cooperated deeply, and the fundamentals were further consolidated. After the “buy” rating was upgraded to a “buy” rating in 2016, 2017 was the first year the company adjusted and resumed normal operations. Considering the company's capabilities and characteristics in the field of intelligent manufacturing, the deep breakthroughs of major customers, and the development potential of the optoelectronics industry, the company's main business gradually ushered in an inflection point opportunity. The company's EPS for 17-19 is expected to be 0.10 yuan, 0.37 yuan (increase), 0.58 yuan (increase), and a compound growth rate of 148% over the next 3 years. The company was given 35 times to 40 times (the upper limit range of normal operating period valuation for the electronics industry in the current year). The corresponding target price was 12.95 yuan to 14.8 yuan. Continued recommendations were made. Based on changes in fundamentals, it was upgraded to a purchase rating.
Risk warning: Orders for smart hardware products fell short of expectations, and the progress of commercialization in the optoelectronics industry fell short of expectations.