Normalize equity incentives to motivate employees
On the evening of June 20, the company announced the 2024 Restricted Stock Incentive Plan and Business Partner Plan. It plans to grant the incentive target 54,000 restricted shares, and the employee stock ownership plan plans to hold no more than 171,000 shares. The company's equity incentives are normalized to motivate employees. We maintained the company's 2024-2026 EPS forecast of 19.64, 22.62, and 25.90 yuan, respectively. Compared with the company's 2024 Wind, the average PE value was 18 times. The company had obvious product advantages and flexible performance growth. We gave the company 25 times PE in 24 years, maintained a target price of 491 yuan, and maintained a “buy” rating.
New round of equity incentive plans released
The company plans to grant 54,000 restricted shares (about 0.04% of the current total share capital) to 29 key employees. The source of the shares is targeted issuance. This award is a one-time grant. The grant price is 208.15 yuan/share, which is about 51% of today's closing price. Restricted stocks were unlocked in 47 parts. The target for unlocking is: based on the company's revenue in 2023, the revenue growth rates for 2024-2027 will not be less than 10%, 14%, 18%, and 22%, respectively. Through equity incentives, the company is expected to attract and retain key personnel, fully mobilize enthusiasm and creativity, and effectively enhance the cohesion of the core team and the core competitiveness of the enterprise.
The third phase of the Business Partner Program was released
The participants in this employee shareholding plan are 36 core employees, including General Manager Chang Jing, Deputy General Manager Quan Gang, Deputy General Manager Qian Qijie, and Supervisory Board Chairman Xie Haojian. The total capital at the time of establishment was no more than 35.4.45 million yuan, and the number of shares to be held was no more than 170,300 shares, accounting for about 0.13% of the current total share capital. The source of the stock is the stock repurchased by the company's special repurchase account. The price of the current employee stock ownership plan to purchase shares is 208.15 yuan/share. The stock is unlocked in four installments. The unlocking target is: based on the company's revenue in 2023, the revenue growth rates for 2024-2027 will reach 10%, 14%, 18%, and 22%, respectively, and the target value for 2024-2027 will reach 12%, 16%, 20%, and 24% respectively. During the unlocking period, if the company's current revenue reaches the trigger value, 80% can be unlocked, and 100% unlocked if the target value is reached.
Start a new journey of globalization and open up room for growth
In the long run, the company embarks on a new journey of brand globalization, and the growth path is clear; in the short term, tax rebates from subsidiaries increase current profits. Combined with the new products released by the company this year and its sales performance, we believe that the company's product development advantages and leading position are becoming more obvious, and it is expected to become a global leader.
Risk warning: increased market competition; risk of high inflation overseas; risk of new products falling short of expectations.