Events:
On July 6, the company issued a notice on the unlocking and listing of the second phase of the 2021 restricted stock incentive plan, saying that the second restricted period of the company's 2021 restricted stock incentive plan has expired, and the conditions for the lifting of the second restricted period have been achieved, according to the authorization of the company's 2020 annual general meeting. In accordance with the relevant provisions of the incentive Plan, the company intends to handle matters related to the lifting of restrictions on the restricted stocks of 98 incentive targets who meet the conditions for lifting the restrictions, and the unlocked number shall be 50% of the number granted.
Comments:
Equity incentives are promoted steadily to stimulate the vitality of talents. According to one of the previous conditions for the unlocking of equity incentives, the conditions for lifting the restrictions during the second sales restriction period are based on the average annual operating income from 2018 to 2020. the growth rate of operating income in 2022 is not less than 30%, while the company's actual revenue growth in 2022 is 78.98%. The company's performance assessment has been achieved. The performance evaluation greatly exceeds the set target, and the achievement of lifting the sales restriction conditions will greatly stimulate the enthusiasm of the incentive object in the company's production management.
Actively expand multi-service, send power communication + robot. Through the acquisition of Sino-German cable and Kobao Optoelectronics, the company has realized the horizontal extension of the industrial chain, enriched the product categories and expanded the market development space.
Among them, Sino-German cable is a well-known domestic communication cable supplier, and has become an excellent partner of Huawei Technology, ZTE Corporation and other large domestic communication equipment manufacturers. Kebao Optoelectronics mainly produces industrial control automation cables, which are mainly used in robots and other fields, and has become a supplier of industrial control automation cables to Panasonic, KUKA, YASKAWA and other robot manufacturers. Sino-German Cable and Cobao Optoelectronics have accumulated a large number of high-quality customer resources and rich project practical experience in the industry, which will empower the company from multiple dimensions such as technology accumulation and industry coverage to enhance brand value and comprehensive competitiveness. Looking forward to the future, we believe that considering that robots and humanoid robots are in the stage of gradual expansion, especially humanoid robots have significantly higher requirements for cables than other industries, and Kobao Optoelectronics, as a supplier of high-end robot cables, is expected to rely on technological advantages to give priority to seizing humanoid robot business and create a new growth pole for the company.
Profit forecast: as the leading enterprise in the cable industry, the company has profound technology accumulation and customer reputation in many fields, and is expected to open up more downstream areas and further improve its market position in the future. We expect the company to achieve a net profit of 2.01 / 2.62 / 3.12 yuan from 2023 to 2025, corresponding to 18 / 14 / 12 times of PE. Give 2024 earnings 20 times PE valuation, target price of 19.8 yuan, the first coverage, given a "buy" rating.
Risk hint: downstream demand is lower than expected, profit forecast and valuation judgment are not as expected.