Event: the company announces the draft equity incentive. The total number of shares in the shareholding plan does not exceed 0.8% of the company's current total share capital, the participants are no more than 100 core personnel of the company, and the grant price is 4.76 yuan per share. the unlocking performance assessment target is 2023amp 2024 net profit growth of no less than 20% shock 44% compared with 2022 (corresponding annual compound growth rate of 20%). The company estimates that the amortization expense of the company's shareholding plan will be RMB 213,363.55 million from 2023 to 2025.

Bind the company's core technical personnel to demonstrate the company's confidence: according to the draft announcement, this equity incentive does not cover directors, supervisors and senior executives, we judge that the company equity incentive coverage is mainly for the company's core design and production technicians. At present, the company accelerates the expansion of industrial modules in more downstream areas, binding the interests of core technical personnel is conducive to the company's domain and geographical expansion, but also demonstrates the company's confidence in long-term development.

The order is abundant, and the certainty of achieving the incentive target is high: since 2022, the company has announced that the newly signed order for major projects is more than 4 billion yuan, and at present there are sufficient orders. in addition, the company's Lippert project and Lippert construction merged in 2022, and the optimization of personnel structure led to a decline in the cost rate. 2023H1's revenue / profit increased by 127.02% and 150.58% compared with the same period last year, and we think it is more certain that the company will achieve the incentive target.

There is plenty of room for long-term growth: we believe that the industrial module industry will continue to expand in the future. Taking into account the company's expansion of domestic customers and subdivision of the lower reaches, we believe that the company's long-term growth space is still sufficient. In addition, with the expansion of the company's designers and production capacity, the company's business structure may tilt to the production and design side with higher gross profit margin in the future, which will further enhance the company's profitability.

Profit forecast and rating: maintain profit forecast. It is estimated that from 2023 to 2025, the company's net profit will be 2.30x300.391m, corresponding to the closing price on September 11th of 18.39exp 13.84x10.81x PE. Maintain the "overweight" rating.

Risk tips: demand is lower than expected, gross profit margin is lower than expected, systemic risk.