Event: the company issued "2021 employee Stock ownership Plan (draft)" and other related documents.
Implement the employee stock ownership plan to bind interests, help the company's healthy and sustainable development of the current employee stock ownership plan to raise a total of no more than 311.5 million yuan, the subscription price is 4.45 yuan per share, and the total number of shares does not exceed 70 million shares, accounting for 4.30% of the company's current total share capital of 1628327220 shares. the stock involved comes from the share buyback implemented by the company in August 2019. The purpose of implementing this plan is to fully mobilize the enthusiasm of the core staff of the company, effectively combine the interests of shareholders, the interests of the company and the personal interests of employees, and establish and improve the benefit-sharing mechanism. promote the healthy and sustainable development of the company.
The core backbone is the participant, and the unlocking condition is that there are no more than 78 participants in the employee stock ownership plan based on the assessment of 21-and 22-year homing net profit, including directors (excluding independent directors) and 5 executives (including general manager). A total of 73 middle-level and other core backbone employees. The lock-up period of the current employee stock ownership plan is 12 months and the duration is 36 months. The unlocking condition is the performance evaluation at the company level, and the unlocking ratio at the company level is calculated according to the performance of the company, which is divided into the trigger value and target value of the return net profit, which is 5 and 550 million yuan respectively in 2021 and 6 and 660 million yuan respectively in 2022.
Speed up the opening of stores and digital marketing to open up online and offline, laying the foundation for high performance growth, the company started the transformation in 2020, and has changed significantly. Revenue end: offline: in 2021, the company's home retail business will open growth space by accelerating the opening of stores, in which direct business will open stores in the form of "quasi-direct operation" and quickly complete a large number of store expansion through light asset operations. the joining business can achieve rapid fission of stores to improve performance contribution by adjusting store opening strategy and introducing competition mechanism. The wholesale business benefits from the overseas epidemic to drive the growth of furniture demand, and the performance continues to improve; online: the company accelerates the offline to online strategy through its own brand, Taobao Tmall, JD.com, WeChat Mini Programs and other channels, and opens a broad market for young consumers through star & online celebrity IP + live broadcast normalization. Cost side: Meike Group reached a deep strategic cooperation with Nankang Municipal Government in October 2020. Nankang is the largest solid wood furniture manufacturing base in the country, and there are hundreds of billions of solid wood furniture industry clusters that can support the production capacity of companies. scale effect is expected to bring further cost reduction and efficiency for the company.
Investment suggestion: we estimate that from 2020 to 2022, the company will achieve revenue of 45.02 / 60.32 / 7.279 billion yuan and net profit of 3.01 / 5.09 / 652 million yuan, corresponding to 0.31 EPS 0.31 per share. We are optimistic about Meike home as a scarce target in the global high-end furniture retail track, while maintaining the "buy" rating as the leading manufacturer of solid wood furniture in China.
Risk hint: whether the employee stock ownership plan can be approved by the general meeting of shareholders, there is uncertainty / epidemic / geopolitical risk / large inventory balance risk / new project progress is not as expected
