Events:
The company issued the 2020 employee Stock ownership Plan (draft). The employee stock ownership plan intends to subscribe no more than 10 million shares, accounting for about 0.96% of the current total share capital of the company; the transfer price of employee stock ownership is 45.32 yuan per share, which is 53.8% discount compared with the closing price of 98.15 yuan on the announcement day, which is expected to have a better incentive effect. The company intends to use its own funds to carry out buybacks in the form of centralized bidding transactions, and the total amount of repurchase shares will not be less than 600 million yuan and not more than 800 million yuan, which will not have a significant impact on the company's business activities.
The employee stock ownership plan covers a wide range of areas and focuses on the interests of non-supervisor employees. The total number of participants in this employee stock ownership plan does not exceed 5500, which covers about 75 per cent of the employees calculated on the basis of 7357 employees at the end of 2019. And the object of participation is the direct person in charge of the development strategy, business unit and management of the company, the undertaker of the important work of the company, and the core backbone of each position of the company, and the core personnel of the development of the company will be covered on a large scale.
At the same time, the plan also stipulates that Dong Jiangao who intends to participate in the subscription shall not subscribe more than 709000 shares, accounting for 7.09% of the employee stock ownership plan; other employees shall not exceed 5484, and the total subscription shall not exceed 9.291 million shares (about 1694 shares per person on average), accounting for 92.91% of the total share capital of the employee stock ownership plan.
The employee stock ownership plan makes the interests of employees consistent with the interests of shareholders and achieves a long-term and deep binding. The employee stock ownership plan will evaluate the performance of individuals in 2021-2023 according to the company's performance appraisal system. The evaluation results show that the A/B/C/D corresponds to the individual unlocking coefficient 100% jump 100% shock 50% peg 0% respectively, and the individual's actual unlocking share is cashed according to the previous year's evaluation results. According to the holder's personal evaluation results, the holder's actual unlocking share in the current period = the holder's current share granted by the holder × personal unlocking coefficient. We believe that this assessment method will fully mobilize the enthusiasm of the key positions of the company, so as to promote the realization of the overall goal of the company.
Impact on the company's future management expenses: assuming that the company transfers 8 million shares of the underlying stock to this employee stock ownership plan at the end of April 2021, with reference to the closing price of 98.15 yuan per share on the announcement date, the company expects to recognize a total cost of 422.64 million yuan, and an amortization of 18314, 16201, 1,340,909 million in 2021, 2024, respectively. Although the cost amortization of the employee stock ownership plan has an impact on net profit in 2021-2024, it will have a positive impact on operations during the period in the long run.
We believe that the implementation of this equity incentive is conducive to spur the core management team, bind the long-term interests of key talents, improve the corporate governance environment, and align the interests of employees and shareholders.Future developmentThe information about the future and the recognition of one's own intrinsic value will help to further enhance investor confidence. Considering the impact of the company's accounting standards adjustment and employee stock ownership plan on management expenses in the third quarter, we will be the company from 2020 to 2022.business incomeThe forecast is adjusted from 46.58 million yuan to 52.36 billion yuan, and the net profit is adjusted from 11.89, 14.92, 18.25 to 8.86, 873, 1033 million, corresponding to PE 120.74122.61, 103.55, maintaining the "buy" rating.
Risk hints: the company's business operation is not as expected, the market competition environment has changed, and the regulatory policy risk