Main points of the report
Event description
The company announced the second phase of the employee stock ownership plan: the number of participants in this stock ownership plan does not exceed 414, of which 15 are Dong Jiangao, and the total amount of funds raised is not more than 100 million yuan. Through entrusting Southwest Securities targeted capital management plan, about 12.56 million shares of the company were acquired with a lock-up period of 1 year and a duration of 3 years.
Event comment
The second phase of employee shareholding starts, demonstrating the company's operational confidence. The plan raised a total of 100 million yuan, of which Dong Jiangao contributed 13.4 million yuan, accounting for 13.4%; other employees contributed 86.6 million yuan, accounting for 86.6%. The source of funds includes two parts: the employee raises no more than 50 million yuan by himself, the controller borrows no more than 50 million yuan, and the annual interest rate is 8%. The same as the employee stock ownership plan: if the overall rate of return is less than 0 at the end of the duration, the holder will only bear part of the loss of self-raised funds, and the borrower shall bear part of the loss and interest on the loan; if the overall rate of return is greater than 0, the holder's income is greater than the interest on the loan shall be enjoyed by the holder, and the insufficient part shall be borne by the borrower. The two-phase employee stock ownership plan is intensively promoted and backed by major shareholders, reflecting the company's management's confidence in the future development.
Confidence does not come out of thin air. From the medium to long-term point of view, the company does have the conditions to achieve stable growth: 1) energy-saving door and window leader. The company is a small company in a large industry (with a market share of less than 1%), but it is a leading enterprise in the field of energy-saving doors and windows with high technical barriers. With the improvement of energy-saving standards, the company's market share is expected to increase. As far as the Beijing-Tianjin-Hebei region, which has a large share of the company's business, is concerned, Beijing has enforced a new energy-saving standard for doors and windows in 2015; 2) the "key customer strategy" has been continuously promoted. Large real estate enterprises with relatively high concentration of downstream customers and guaranteed performance, such as Evergrande and China Resources, accounted for 27.2% of the sales of the top five customers before 2015. Therefore, although the real estate is still in the downward cycle, the company's customer structure can play a certain role in hedging; 3) the retail business is expected to make a breakthrough. In 2015, the company completed the "Internet + model retail" plan. The company has signed a cooperation agreement in Shangyuan, Shanghai, and is expected to form an online and offline interactive retail model and increase the brand premium in the future.
To enter the field of cleaning robots. The company established a robot company through related transactions with the controlling shareholder, and signed a "strategic cooperation agreement" with Changsha Changtai Robot Co., Ltd. to carry out the research and development of cleaning robots. The future is expected to rely on Changtai's strong research and development capabilities and the company over the years accumulated marketing network to successfully complete product promotion.
Real estate recovery, boom transmission. The recent recovery of the downstream real estate industry is obvious, with a substantial increase in the area of new construction, with the gradual transmission to the completion end, real estate demand is expected to increase. It is estimated that 2016 / 2017 EPS0.16 yuan, 0.19 yuan, corresponding to PE50 times, 42 times, to maintain the "buy" rating.
Risk Tip: real estate continues to decline, retail business promotion is not as expected.