Equity incentives cover a wide range of areas, demonstrating the confidence of the company. The company awarded 7.2884 million restricted shares under the incentive plan at a price of 3.64 yuan per share. The incentives involved include not only six senior executives of the company, but also 107 core managers and core technical (business) personnel. The lifting of restrictions on the sale of shares is divided into three periods, and the proportion of lifting restrictions is 30%, 30% and 40%. At the same time, the lifting of the sales restriction period is directly linked to the company's performance: taking the revenue in 2021 as the base, the targets for the three lifting periods are: the growth rate from 2020 to 2023 is not less than 25%, 56%, and 95%, respectively. The individual can lift the sales restriction limit in that year and be linked to performance appraisal, which is conducive to enhancing the sense of mission of the company's management team and business backbone to achieve the healthy development of the company.
Science and technology empowerment is in progress to achieve digital upgrading. At the beginning of 2020, the company invested to set up a subsidiary: China Packaging Cloud Technology Co., Ltd., to prepare for the development of Internet data center (IDC) and blockchain business. The subsidiary plans to build about 10000 standard IDC cabinets through the acquisition of 60 per cent equity investment in Wusha (Kuanyuan) big data Center in Shunde. After the completion of the project, the company will provide IDC services to the majority of enterprises and customers, as well as value-added services such as security protection, big data analysis, Internet integrated solutions and so on.
The acquisition of Shenzhen CNPC testing shares to improve the company's industrial chain. According to the announcement of December 2020, CCIC, a wholly owned subsidiary of the company, has become the transferee of the 80 per cent equity project of Shenzhen China Nuclear Engineering Inspection Co., Ltd with an offer of 9.81504 million yuan. This equity acquisition plays a positive role in promoting the company's stock market business such as urban micro-renewal and the transformation of old residential areas, broadens the company's main business channels, and promotes the company to launch consulting and management services in the whole process of construction. help to enhance the company's brand influence and core competitiveness.
Sufficient orders on hand to ensure future performance. The company signed 7.057 billion yuan in new orders for the whole year of 2020, an increase of 4% over the same period last year, and 2.181 billion yuan in the fourth quarter, up 5% from the same period last year. As of December 31, 2020, the company had 10.573 billion yuan in-hand orders, an increase of 29% over the same period last year. The company announced in January 2021 that it had won a number of bids in succession, with a total amount of 467 million yuan. Sufficient orders provide certainty for the company's future performance.
Cover for the first time, giving the company a "buy" rating. It is estimated that the growth rate of the company's homing net profit from 2020 to 2022 is 19%, 46%, 22%, 0.41, 0.59 and 0.72 yuan. Combined with the comparable company valuation, the company is given 13 times PE, corresponding to the target price of 7.67 yuan.
Risk hint: IDC business does not advance as expected, and performance forecasts and valuation judgments fall short of expectations.
