Description of the event
On July 29, the company announced the 2024 employee stock ownership plan. The share source is that the company's special account has repurchased the company's A shares of common shares. The purchase price of the repurchased shares is 11.42 yuan/share. The total number of shares is no more than 3.069 million shares, accounting for 0.31% of the company's total current share capital. The total number of people participating in the employee stock ownership plan is not more than 122. The participants are supervisors, senior managers, core managers and other core key personnel.
Incident comments
Further promote employee stock ownership plans, and performance targets show confidence. In 2022, the company issued the first employee stock ownership plan to evaluate the 2023-2025 performance and exceed the corresponding performance targets. The second phase of the employee stock ownership plan assesses the company's 2024-2026 performance. Based on the actual net profit growth rate compared to the net profit in 2023, the actual completion ratio (A) of the target value set for that year (A) or the actual value of the cumulative net profit growth rate compared to the actual completion ratio (B) of the 2023 net profit growth rate compared to the actual completion ratio (B) of the target value set for that year was determined to determine the corresponding attributable ratio (X): 1) Net profit growth rate for each year (X): 1) Net profit growth rate: Refer to the 2023 net profit base, the 2024/2025/2026 net profit growth rate is not lower than 50%, 103%, and 153%, corresponding net profit was 1.56/2.11/2.63 billion yuan, respectively. 2) Net profit cumulative growth rate: 2024 net profit increased 50% year-on-year, 2024-2025 cumulative net profit increased 252% (3.66 billion yuan) compared to 2023, and cumulative net profit 2024-2026 increased 506% (6.3 billion yuan) compared to 2023. The company has set a high performance growth target for the next 3 years, which significantly exceeds market expectations. On the one hand, it highlights the company's confidence in development, and on the other hand, it improves the long-term incentive mechanism, which helps bind the core business backbone and further enhance the company's core competitiveness.
Shareholders proposed mid-term dividends to improve quality and efficiency and focus on returns. In order to improve investors' return capacity and level, the company proposes to implement mid-term dividends in 2024. For 2024H1, the company plans to pay a cash dividend of 0.3 yuan (tax included) per share. The corresponding medium-term dividend ratio is about 36.8%-39.3%, further enhancing investors' sense of acquisition.
Investment advice: Performance expectations have been raised again, and the African space can be expected to grow. Since the results forecast for the second quarter exceeded expectations, the company continued to be favorable. The company introduced a mid-term dividend plan and 2024 employee stock ownership plan. The performance growth target for the next 3 years has significantly exceeded market expectations, demonstrating the company's confidence in the growth of major logistics business models, and Africa's second curve growth can be expected. In “Logistics Age of Discovery Series 6: Jiayou International: Jiayou International's Journey to Africa”, we disassembled the growth space of the company's African business in detail. With the African Logistics Festival going from point to line, the network effect will release the African business into a fast track of growth. We continue to be optimistic about the company's project expansion capabilities and the growth potential of the African logistics market, and performance expectations are expected to improve further. The company's net profit for 2024/2025/2026 is estimated to be 1.56/2.16/2.64 billion yuan, respectively, and the corresponding PE is 11.2/8.1/6.7X, respectively. The company's PE is only 10X in 2024, and the compound growth rate of performance is expected to exceed 35% in the next 3 years. It is a high-quality asset with high growth that has been significantly underestimated, and I am firmly optimistic about the growth value of Jiayou International.
Risk warning
1. Demand for Mongolian coal fell short of expectations;
2. The production capacity of the African Casa project fell short of expectations;
3. The risk of geopolitical fluctuations.