Event: on September 28, 2023, the company released the fourth draft employee stock ownership plan. The size of the employee stock ownership plan is proposed to be 98.92 million shares, accounting for 4.03% of the company's total share capital.
A wide range of equity incentives will help the company to promote strategic reform: this equity incentive is divided into two batches, the first / second batch allocation ratio is 61% / 39%. Among them, the first batch of subscribers include 6 Dong Jiangao and 64 middle-level backbones, with a total of 70 people. The first batch of assessment indicators are: ① 2023 homing net profit more than 100 million yuan, or revenue more than 2.5 billion yuan; ② 2024 homing net profit year-on-year + 50% or more, or revenue year-on-year + 10% or more; ③ 2025 homing net profit year-on-year + 30% or more, or revenue + 10% or more. The matching of the assessment objectives of the shareholding plan with the strategic transformation will help to encourage the core backbone to actively promote the strategic transformation.
The company's headquarters business is in a period of strategic adjustment, waiting for business improvement: 2023H1, company revenue of 1.31 billion yuan, year-on-year-25.2%; return to the mother net profit of 54 million yuan, year-on-year-69.3%. Among them, the company's headquarters / time interconnection revenue is 1.62 / 1.15 billion yuan,-37% /-23.2% compared with the same period last year, and the net profit is 0.32 / 17 million yuan,-77% /-47% compared with the same period last year. The company headquarters is in the transition period of business structure adjustment and upgrading in 2023, combing and planning the brand integrated service business, defining the three major sectors of strategic authorization service, fashion authorization service and proprietary retail business; time interconnection further develops film and television culture business and optimizes business structure. In the future, with the promotion and landing of strategic transformation and upgrading, the company's revenue and profit is expected to return to positive growth.
Antarctic e-commerce is one of the core targets of the high-quality consumer goods supply chain brand track in China: the main business of the company is the brand integrated service business. The company has more than ten well-known brands such as national brand "Antarctic" and international brand "Cartier" and "Baijiahao". The time interconnection acquired by the company is mainly mobile Internet marketing business, providing advertisers with one-stop services such as marketing strategy formulation, creative planning and material production, media resource integration, data tracking and analysis, short video customization, delivery optimization and so on.
The company's main business is in line with the brand trend of China's high-quality supply chain, and has broad prospects for the future: China has the world's leading consumer goods supply chain, but there is still a gap compared with overseas giants in brand awareness. The brand integrated service business of Antarctic e-commerce is expected to integrate the upper and lower reaches of the industrial chain to improve efficiency, and through brand empowerment to help the supply chain realize, the future prospect is broad.
Profit forecast and investment rating: we expect the company's net profit in 2023-25 to be RMB 1.1 / 1.6 billion, which is + 136% / + 50% / + 34% compared with the same period last year, corresponding to the closing price of 79 / 53 / 39xP/E on October 9. The company is the high-quality target of China's high-quality supply chain branding track, with the ability of brand operation and supply chain integration. Coverage for the first time, giving a "overweight" rating.
Risk tips: intensified competition in the industry, changes in the rules of e-commerce platform, etc.