公司发布股权激励计划，进一步提高员工积极性。公司于2024 年5 月22日发布股权激励草案，7 月4 日发布调整方案，实际以2024 年7 月4 日为授予日，以10.04 元/股的价格向727 名激励对象授予5805.8848 万股限制性股票，占公司股本总额的2.45%。业绩考核目标是：以2023 年扣非净利润为基数，24/25/26 年扣非净利润增长不低于25%/44%/66%。激励对象限售比例：①业绩考核目标达到或超过100%，则当期待解除限售部分的实际解除比例为100%；②业绩考核目标实现85%-100%，则当期待解除限售部分的实际解除比例为80%。我们认为，股权激励的发布有利于进一步激发企业活力。Incident: On the evening of October 28, Beijing time, Shengyi Technology released its 2024 three-quarter report. In Q1-Q3, 2014, it achieved operating income of 14.745 billion yuan, an increase of 19.42% over the previous year, and achieved a net profit of 1.372 billion yuan to mother, an increase of 52.65% over the previous year.
The company's revenue and profit both increased. Looking at a single quarter, the company achieved operating income of 5.115 billion yuan in Q24, an increase of 14.52% over the previous year, and realized net profit of 0.44 billion yuan to mother, an increase of 27.83% over the previous year. The company's revenue growth was mainly due to the subsidiary Shengyi Electronics achieving revenue of 1.206 billion yuan, an increase of 49.27% over the previous year. As the market demand for high-rise, high-precision, high-density and high-reliability multi-layer printed circuit boards increased, production, sales, and revenue all increased compared to the same period last year. The increase in gross profit led to a significant increase in net profit.
Product structure and sales structure upgrades have increased the company's profitability. The company's gross margin in Q1-Q3 reached 22.02%, up 2.49pct year on year, and net margin reached 9.84%, up 2.65pct year on year. The increase in profitability is mainly due to the year-on-year increase in the company's copper-clad plate production and sales volume, the reduction in unit manufacturing costs, and the optimization of the sales structure, resulting in a year-on-year increase in revenue and gross margin of copper-clad plate products, as well as the increase in other benefits due to the value-added tax input tax credit policy, which increased profits. At the same time, the gross margin of the subsidiary Shengyi Electronics Q1-Q3 reached 21.68%, up 5.46pct year-on-year. Mainly due to strong server demand, the share of revenue of high-rise and high-density high-margin multilayer circuit boards increased.
The company issued an equity incentive plan to further enhance employee motivation. The company issued an equity incentive draft on May 22, 2024, and an adjustment plan on July 4. In fact, with July 4, 2024 as the grant date, 58.058848 million restricted shares were awarded to 727 incentive recipients at a price of 10.04 yuan/share, accounting for 2.45% of the company's total share capital. The performance assessment goal is to increase non-net profit by at least 25%/44%/66% in 24/25/26 based on deduction of non-net profit in 2023. Incentive target sales restriction ratio: ① If the performance assessment target reaches or exceeds 100%, the actual cancellation rate for the portion expected to be lifted is 100%; ② if the performance assessment target is 85%-100%, then the actual cancellation rate for the portion expected to be lifted is 80%. We believe that the issuance of equity incentives is conducive to further stimulating enterprise vitality.
Investment advice: Considering that the boom in the copper clad plate industry is expected to continue, combined with the company's leading position in the industry and current product leadership, we expect the company's net profit to mother for 2024-2026 to be 1.834 billion yuan, 2.225 billion yuan, and 2.526 billion yuan respectively. The PE corresponding to the current stock price is 27X, 22X, and 20X, respectively. It has strong growth potential in the future, is optimistic about the company's subsequent development, and maintains a “recommended” rating.
Risk warning: Downstream customer development progress falls short of expectations; new product development falls short of expectations.
