Core views:
The 2024 Equity Incentive Plan further expands the scope of incentives. The company released the 2024 Restricted Stock Incentive Plan (draft). The number of restricted shares to be granted under this incentive plan is 1.079 million shares, accounting for about 0.2% of the current total share capital of the company. The total number of underlying stocks covered by the restricted stock incentive plans issued by the company in 2020, 2022, 2023, and 2024 respectively account for about 0.70% of the company's total current share capital. In terms of coverage, the total number of incentive recipients of this incentive plan is no more than 237 people, including technical directors, other technical (business) key personnel, and middle management personnel. The company's equity incentive plan for 2023 will not exceed 205 people in total, and also includes a number of foreign engineers and technical directors. By implementing an equity incentive plan, the company further promotes the construction and stability of the core talent team and helps the company's long-term development.
Performance assessment goals demonstrate confidence in long-term steady growth. Based on the calculation of a 100% ownership ratio at the company level, assuming that the target is achieved every year, the 2023-2025 performance targets in the company's 2023 equity incentive plan are revenue of 4.23 billion, 5.08 billion, and 6.09 billion, respectively.
According to the company's performance report, the company achieved revenue of 4.378 billion dollars in 2023. In the current 2024 equity incentive plan, the company maintains a consistent performance assessment target for 2024-2025, and the 2026 revenue target is 7.01 billion yuan, that is, 2024-2026, and revenue needs to increase 16.0%, 20.0%, and 15.0% year-on-year on the assumption that the target will be achieved every year. Relying on current market opportunities to accelerate domestic substitution and the company's long-term technology accumulation, the company uses RF modules as a growth engine, invests in the construction of semiconductor industrialized production bases, and actively builds its own high-end production and manufacturing process platform. This incentive plan shows the company's confidence in long-term steady development.
Profit forecasting and investment advice. The company's 23-25 EPS is estimated to be 2.18, 2.86, and 3.57 yuan/share, respectively. Referring to the company's long-term growth and comparable company valuation, the company will be given 50x PE in 2024, corresponding to a reasonable value of 143.14 yuan/share, giving it a “buy” rating.
Risk warning. Industry prosperity fell short of expectations; industry competition was fierce; gross margin fell short of expectations; progress of new products fell short of expectations.