Incident: On April 27, the company announced the 2023 Stock Options Incentive Plan (draft). The incentive targets for this plan are a total of 221 core technical cadres of the company. Using the stock option incentive method, the number of stock options to be granted is 3.244 million (no reservations), accounting for 1.75% of the company's current total share capital, and the exercise price is 18.03 yuan/share.
Bind the interests of core employees to help the company develop steadily in the medium to long term. The equity incentive plan corresponds to the company's performance assessment goals: based on the company's 2022 operating income or net profit, the 2023 net profit growth rate is not less than 150% or the revenue growth rate is not less than 50%, the 2024 net profit growth rate is not less than 200%, or the operating income growth rate is not less than 100%. In other words, net profit to the mother in 2023 was not less than 73 million yuan, not less than 150% year on year, or revenue was not less than 572 million yuan, no less than 50% year on year, net profit of the mother in 2024 was not less than 87 million yuan, not less than 20.00% year on year, or revenue was not less than 762 million yuan, or not less than 33.33% year on year. At the same time, the company expects this plan to incur a total of 8.7882 million yuan in expenses, with amortization of 396.20/390.78/918,400 yuan respectively from 2023-2025. We believe that this plan is deeply tied to employees' interests, helps the company attract and retain core talents and fully mobilizes employees' enthusiasm. At the same time, it also highlights confidence in the company's future continuous development and is conducive to the company's long-term sustainable development.
Self-developed chips are progressing steadily, and I am optimistic about the long-term development of video display control leaders. The company is a leading provider of professional audio and video control equipment and solutions in the industry. The company is based on five core technologies and expands around three major application directions. The design stage for the company's self-developed ASIC chips has basically been completed. Domestic chips can not only better meet the requirements of Party, government, and military users for autonomous and controllable localization, but can also further enhance the market competitiveness of the company's products. We believe that with the continuous implementation of the information technology policy and the further deepening of national defense informatization, the demand of party, government, and military users for autonomous and controllable localization will continue to rise, and the company is expected to usher in an inflection point in its performance and continue to grow.
Profit forecasts and investment ratings. We expect the company's net profit to be 137/159/176 million yuan in 2023-2025. The current stock price corresponds to PE 25.4/22.0/19.9 times respectively. We are optimistic about the steady growth of the company's future performance and maintain the “buy” rating.
Risk warning: risk of macroeconomic fluctuations; technology implementation falling short of expectations; policy promotion falling short of expectations; risk of fluctuations in raw material prices.