Recently, the company issued a 2020 restricted stock incentive plan (draft), which intends to grant 2.543 million restricted shares, accounting for 2.00% of the total share capital, with a grant price of 26.76 yuan per share.
Equity incentives demonstrate the company's confidence, and the incentive plan promotes long-term development. According to the announcement, the performance evaluation plan is 2021, 2022, and 2023 operating income or net profit is not less than 50%, 125%, 237.5%, respectively, compared with the 2020 annual growth rate, that is, the average annual compound growth rate is 50%.
We believe that the company setting higher performance indicators will help to stimulate the enthusiasm of employees and improve the company's market share and profitability. This incentive plan is awarded to a total of 117 people for the first time, including core managers, core technical / business personnel, etc., this equity incentive helps to combine the interests of shareholders, companies and employees, and promote the long-term development of the company. For the first time, the company will encourage some foreign employees, which will play an important role in carrying out the internationalization strategy and expanding overseas markets.
Mobile phone manufacturers will cancel the random complimentary accessories, and the company's charging business will develop rapidly. The company's main business is consumer electronic accessories: signal converters, wire harnesses, power adapters, etc., with 2020H1 revenue accounting for 44.36%, 31.47% and 20.07% respectively. Following Apple Inc's cancellation of random chargers and headphones, Samsung and other Android manufacturers are considering canceling random accessories, and third-party accessories manufacturers are expected to usher in rapid development: according to Research and Markets, the market for smartphone charging, wires and other peripheral products will reach 104 billion US dollars in 2022. The company cooperates closely with the global 3C accessories retail leading enterprises Anke Innovation and Belkin, and it is expected that the company will quickly cut into the third-party charging field of Apple Inc after obtaining Apple Inc MFI qualification. We believe that the increase in the proportion of Apple accessories, fast charging and wireless charging accessories will boost the company's gross profit margin, which is expected to return to more than 30% in the next two years, and the company's profitability is expected to increase significantly.
Intelligent innovation helps expand the category, and the company's long-term growth has sufficient power for wireless headphones. under the iterative technology, the improvement of noise reduction, transmission and battery life performance continues to detonate consumer demand, and shipments maintain high growth: according to IDC statistics and forecasts, global TWS headphone shipments will reach 230 million units in 2020, and TWS headphone shipments are expected to reach 350 million units by 2021, an increase of about 50% over the same period last year. 2020H1 Bluetooth headphones and TWS headphones have been mass produced, accounting for about 4% of revenue. We believe that with the introduction of customer products, the company's acoustic products will increase rapidly to ensure sustained high revenue growth. The company has close ties with major customers and actively seize the new opportunities in the AIOT era. Customized products are expected to be extended to intelligent hardware such as floor-sweeping robots. The company has sufficient long-term growth momentum, and the company is expected to maintain revenue and net profit growth of more than 50% in the next two years.
Investment suggestions take into account that the company's long-term operating capacity is expected to improve significantly under the two-wheel drive of equity incentives and product business development. The company's net profit from 2020 to 2022 is expected to be 1.85,2.84 and 432 million yuan respectively, corresponding to EPS 1.45,2.23,3.39 yuan respectively. The company, a leading consumer electronics accessories ODM company, will significantly benefit from the outbreak of the third-party charging market, and its performance is expected to continue to grow, giving a "recommended" rating for the first time.
The risk indicates that the demand for fast charging products is lower than expected and the promotion of new products is not as expected.
