Event Overview
The company issued an equity incentive plan to grant a total of 3.7375 million shares, accounting for 2.48% of the company's total share capital of 150.425 million shares at the time of the announcement of the plan, of which 2.99 million shares were granted for the first time (restricted stock and stock options). It accounts for 80.00% of the total equity to be granted under the plan and 1.99% of the company's total share capital of 150.425 million shares at the time of the announcement of the plan. A total of 747500 shares of rights and interests (restricted shares and stock options) are reserved, accounting for 20.00% of the total rights and interests to be granted under the plan and 0.5% of the company's total share capital of 150.425 million shares at the time of the announcement of the plan.
Launch the equity incentive plan and strengthen the construction of the echelon of talents
The company launched the equity incentive plan to further strengthen the construction of the talent echelon. A total of 62 people were encouraged this time, including senior managers, middle and senior management personnel and core technical (business) backbone personnel. The exercise price of stock options granted for the first time is 72.46 yuan, and that of restricted stock for the first time is 36.23 yuan. The exercise assessment year is the four fiscal years from 2021 to 2024, that is, taking the net profit in 2020 as the performance base, and the growth rate of net profit in 2021, 2022, 2023 and 2024 is not less than 60%, 100%, 140% and 180% respectively, then the exercise weight coefficient at the company level is 1.
Assuming that the company grants it in early September 2021, the company estimates that the total amortization cost of the first grant of stock options and restricted stock is about 50.0072 million yuan, including about 8.0471 million yuan in 2021 and 20.782 million yuan in 2022.
The iteration of new and old products is accelerated, and the gross profit margin is improved quarter by quarter.
We believe that the initial iteration of new and old products has an impact on the company's gross profit margin, the demand of the ETC rear loading market slows down in 2020, and the ETC front chip device is supported in 2021. The company's national standard ETC SoC chip has obtained the vehicle regulation certification, entered the automobile front loading market, and is in a leading position in the technology and market. In addition, in the Bluetooth audio business sector, in order to cope with product competition and increase market share, the company adopted a competitive price strategy for the previous generation of Bluetooth audio chip products in 2020, and the gross profit margin of related products was low. pulled down the company's overall gross profit margin. Q1's quarterly gross profit margin in 2021 was 25.28%, 10.75 percentage points higher than the 14.53% of Q4 in 2020. We believe that with the continuous introduction of new products and iteration of old products, the level of comprehensive gross profit margin is expected to increase gradually. The terminal customers of the company's wireless data transmission products include Midea, Graffiti Intelligence, Jinyi Technology, Leiber Technology, DJI Technology and other domestic well-known enterprises, while the end customers of wireless audio products include Motorola, LG, Sharp, Philips and Alibaba.
Strengthen R & D investment, product innovation and upgrading
Most of the company's core teams come from top foreign universities and scientific research institutions, such as Yale University, UCLA, Kyoto University, AT&T Bell Laboratories and so on. They all have overseas study experience in the microelectronics industry and are experts in the field of integrated circuit design. As of December 31, 2020, the company has 222 employees, of which 192 are R & D personnel, accounting for 86.49%. From the perspective of R & D expenditure, the company's R & D expenditure in 2020 was 122 million yuan, an increase of 23.44% over the same period last year. Q1's quarterly R & D expenditure in 2021 was 42 million yuan. While the company continues to strengthen its R & D investment, it carries out new product planning based on market demand and improves the conversion rate of the company's R & D investment. According to the announcement of December 25, 2020, Eneng Industries paid 67 yuan per transferee for 8.34 million shares. According to the announcement of January 12, 2021, the company has set an additional issue price of 65.00 yuan per share and issued 11.7114 million shares, of which the company's existing shareholder, Shanghai Wuyuefeng Integrated Circuit Equity Investment Partnership (limited partnership), holds 3.74 million shares of the issuer, accounting for 2.70% of the total share capital before this issue. According to the simplified equity change report disclosed by Shanghai Zhineng Industrial Electronics Co., Ltd., Shanghai Wuyuefeng Integrated Circuit Equity Investment Partnership is a concerted actor of Shanghai Zhineng Industrial Electronics Co., Ltd. Therefore, after Shanghai Zhineng Industrial Electronics Co., Ltd. has completed the registration of this issue and the previously agreed transfer of shares, those acting in concert with it will hold a total of 18.23 million shares of the issuer, accounting for 12.12% of the total share capital after the issue.
Investment suggestion
We maintain the previous forecast, the company is expected to achieve revenue of 1.25 billion yuan, 1.65 billion yuan, 2.15 billion yuan from 2021 to 2023, and the net profit of shareholders belonging to the parent company is expected to be 161 million yuan, 257 million yuan, 330 million yuan, we maintain the previous "overweight" rating.
Risk hint
Competition in the industry intensifies, the development of the semiconductor industry is lower than expected; the company's technological innovation is lower than expected, resulting in lower-than-expected breakthroughs in new products; downstream application expansion and customer expansion are lower than expected.