It is proposed to buy back no more than HK $100 million for share awards.
On December 28, the company announced the share Award Scheme and the announcement of the purchase of shares under the share Award Scheme. The purpose of the scheme is to (I) recognize and motivate and reward the contributions made by a number of eligible participants in order to retain the effectiveness of the company's continued operation and development; (ii) attract suitable personnel to promote the further development of the company. (iii) provide direct economic benefits to a number of eligible participants to establish a long-term relationship with the company.
The Board of Directors also resolved to provide the trustee with an aggregate amount of not more than HK $100 million to purchase existing shares at an appropriate time and to hold them until shares are later granted under the Scheme.
The Board believes that the current share price of the company seriously underestimates the company's performance and related value, which provides a good opportunity to purchase shares for the future grant of shares under the scheme, and the company is full of confidence in the business prospects. The shares purchased as shares in the scheme can be used to continue to motivate a number of eligible participants in the future.
The company's current sound financial position enables the company to provide the trustee with the necessary funds for share purchases while maintaining adequate financial resources for the sustainable development of the company's operations.
Increase the investment in research and development and optimize the motivation of employees with the characteristics of thinking music
The core of education is always content, and teaching and research is an important pillar to support content. Sikole Teaching and Research Institute is composed of more than 200 professional teaching and research staff, which is committed to the standardization of curriculum system, teaching materials and teaching methods. In May this year, the company reached a strategic cooperation agreement with Oracle Corp, the world's largest provider of information management software and services. Oracle Corp's agile data analysis platform not only provides the company with immediate and accurate operating data, but also provides more scientific management basis, with continuous innovation to enhance customer insight and analysis ability, strengthen management radius and management ability.
Employees are the most valuable capital of the group. At present, Sianle has more than 4000 employees. During the epidemic, the team struggled side by side, unity and win-win became the core concept in the heart of the company. At the same time, the company launched the core incentive mechanism with thinking characteristics, including teacher partner, principal management fission mechanism and option partner system, which provides a strong incentive mechanism for teachers, principals and core management. it has laid a solid foundation for the development of the next decade.
Maintain earnings forecasts and give buy ratings
K12 training assets have more room for growth, thinking and enjoying the population dividend of the Great Bay area, the management team is very energetic, and the partnership system is in place. It is currently in the stage of rapid growth, and the rapid release of growth dividends has greater flexibility in market value. Considering the impact of the epidemic in 2020 and the short-term impact of rapid school opening on profits, we estimate that the company's FY20-21 will be 200 million and 280 million, and the PE will be 28x and 20x, respectively.
Risk tips: market competition incentives, buyback progress is not as expected, the loss of core executives, price increases are not as expected