The company issued an announcement: The company grants a total of no more than 12.9 million restricted shares to 347 people, including directors, senior management and core executives, at a price of 13.96 yuan/share.
Comment:
Equity incentives are a new breakthrough in the incentive method for central enterprises to build new materials in Beijing, promoting closer co-development between employees and companies. Beixin Building Materials provides equity incentives as a central enterprise company. It is a new breakthrough in incentive methods, making the company deeply tied not only to the development of basic business, but also to employees in terms of market value management. It can promote the company's market value to better reflect changes in the company's intrinsic value. Especially in the context of “China Special Valuation,” this is conducive to improving the market value of central enterprise assets.
The requirement to lift the ban on restricted shares shows the company's development standards and is conducive to increasing valuations. The incentive stock ban is lifted in three installments, granting 34% to be lifted 24-36 months after registration; another 33% to be lifted after 36-48 months; and the remaining 33% unbanned after 48-60 months. In the performance assessment criteria for lifting sales restrictions, there are requirements for improving the compound growth rate of net profit after deducting non-return to mother, return on non-net assets, and economic value added. Among them, the ROE requirements after deduction from 2024 to 2026 are not less than 17%, 18%, and 19%, respectively, and higher than the target company's 75th percentile value or industry average; at the same time, the annual △ EVA > 0 is required. These all reflect the company's requirements for improving asset quality. Not only must the quality of its own assets continue to improve steadily, but also maintain a high level in the benchmarking listed companies and the overall industry. The increase in ROE is required not by blindly expanding debt, but rather by guaranteeing the efficiency of investment and output in terms of financing. These requirements all reflect the improvement of the company's own excellence and beta attributes, and are conducive to promoting the improvement of the company's valuation center.
The net profit requirement for the lifting of the restricted stock ban shows the company's endogenous and epitaxial development confidence and direction. The net profit assessment requirement for the lifting of sales restrictions is that the compound growth rate of net profit after deduction is not less than 27.7% in 2022 to 2024, and the compound growth rate from 2022 to 2025 is not less than 33.08%. The performance commitment requirements for the acquisition of Garbaoli 2024, 2024-2025, and 2024-2026 net profit after tax deduction are not less than 4.13, 8.75, and 1,394 million yuan, respectively. In other words, the net profit of the 2024, 2025, and 2026 promises not less than 3.24, 3.62, and 407 million yuan respectively. This performance can only increase the annual net profit growth rate of about 8.5%. Therefore, in order to meet the standard net profit growth rate after deduction, it is still necessary to rely on the growth of the gypsum board and waterproof materials business, or the growth of the paint business that exceeds expectations, and on the growth brought about by the rapid increase in the company's market share and epitaxial expansion.
The industry environment is conducive to the company's better and faster development and growth. In the current industry environment, the company is a central enterprise leading building materials company. The gypsum board business, which is the absolute leader, brings abundant cash flow and is the foundation for better and faster expansion. However, the waterproof materials and coatings industry is currently affected by the continued downturn in real estate, and survival of the fittest is intensifying.
The continuous downturn in the building materials industry brings a period of opportunity for the company's development. In the current environment, whether it is an increase in market share or epitaxial mergers and acquisitions, the company is in an advantageous position and is optimistic about the new growth brought by the company's waterproof materials and coatings business.
Company profit forecast and investment rating: We expect the company's net profit for 2023-2025 to be 36.25 billion yuan, 46.05 billion yuan, and 6.207 billion yuan, respectively, with corresponding EPS of 2.15, 2.73 and 3.67 yuan, respectively. The current stock price corresponds to 2023-2025 PE values of 11.8, 9.3, and 6.9 times, respectively. I am optimistic that during the development opportunity period, the company will maintain the company's “highly recommended” rating through both endogenous and epitaxial efforts, the steady improvement of the “integrated” gypsum board business, and the new growth space brought by the “two wings” business of waterproof materials and coatings.
Risk warning: The regulatory effect of the real estate industry falls short of expectations.