Event description
On October 19, the company released its third-quarter report of 2023. According to the announcement, the company achieved an operating income of 725 million yuan in the first three quarters, an increase of 9.77% over the same period last year, and a net profit of 264 million yuan, an increase of 6.83% over the same period last year.
Achieve steady growth in performance
The reason why the growth rate of net profit in the first three quarters of 2023 is lower than the growth rate of operating income is due to the impact of share-based payments arising from equity incentives. The company implemented equity incentives in October 2022 and generated 39.9368 million yuan in share payments in the first three quarters. After deducting the impact of share payments, the net profit in the first three quarters of 2023 was 304 million yuan, an increase of about 22.98 percent over the same period last year.
The equity incentive plan is expected to fully mobilize the enthusiasm of the core staff.
On September 28, 2023, the company issued the 2023 restricted Stock incentive Plan (draft), revealing that the company intends to grant restricted shares to directors, senior managers, middle managers and core backbones at a price of 35.63 yuan per share, encouraging a total of 162 people. We believe that the equity incentive scheme is expected to further establish and improve the company's long-term incentive mechanism, attract and retain talents, and effectively combine the interests of shareholders, the company and the personal interests of the core team. make all parties pay attention to the long-term development of the company.
Investment suggestion
According to the financial report data, we adjust the profit forecast and expect the company's net profit from 2023 to 2025 to be 3.40,4.17 and 517 million yuan respectively (485 million yuan / 688 million yuan before 2023 / 2024), with year-on-year growth rates of 22.6%, 22.7% and 24.1%, respectively. The corresponding PE were 29.42,23.98,19.33 times respectively. Maintain a "buy" rating.
Risk hint
Downstream demand is lower than expected, R & D is not as expected, and capacity release is not as expected.