Event: on August 22nd, the company issued the second phase of the 2022 stock option and restricted stock incentive plan (draft). A total of 37.5 million rights and interests are to be granted, including 25 million stock options and 12.5 million restricted stocks. The number of stock options / restricted shares granted for the first time is 23.96 million / 11.98 million shares, and the corresponding exercise price / grant price is 18.43 yuan / share and 9.22 yuan / share respectively, covering a total of 405 people, such as core management and technical / business talents. The stock option / restricted stock granted for the first time is divided into three periods of exercise / lifting of restrictions, and the proportion of exercise / lifting of restrictions in each period is 30%, 30%, 40%, respectively. The corresponding exercise / lifting target is 2022-2024, the main business income is not less than 100x12 trillion yuan, and the vehicle optical income is not less than 100 million yuan in 5-12-18. Or compared with the net profit of homing in 2021, the increase is not less than 165%, 260%, 350% (corresponding to 2022-24, the net profit of homing is not less than 2.99, 405, 506 million yuan).
Equity incentive shows confidence in growth, and the plan landed to relieve the interference of stock price: due to the influence of external uncertain factors in the first half of the year, the company's stock price fluctuated sharply. In order to give full play to the incentive effect of equity incentive plan on core talents, the company made 4. 5%.
The first phase of the equity incentive plan issued on February 15 was terminated on the 29th. Compared with the last equity incentive plan, the incentive strength of this incentive plan and the assessment target for vehicle optical business have been improved, and the number of employees granted coverage for the first time has increased from 3300 million to 37.5 million, and the vehicle optical income assessment target for 2022-2024 has been raised from 100 million yuan in 5-10-15 to no less than 5-12-18 billion yuan. The arrival of the new incentive scheme removes the stock price interference and further demonstrates the company's high growth confidence in on-board optics.
Management focus on optics-binding core talents, assembling to embrace the opportunities of the times: at the end of 2021, the company re-elected the board of directors, the optical backbone was elected as the core management, and determined the strategic position of the optical business from the management level. the company was able to concentrate resources to develop its optical business. In addition, in view of the incentive issue of core talents that the market is worried about, this incentive program has achieved sufficient incentives in terms of incentive intensity and coverage, including four optical technology / business core backbones, including four vice presidents of optics. Mr. Zeng Jiyong, the leader of the optical business, has also been encouraged through the previous employee stock ownership plan.
The core talents sharing the company's operating results with the help of the equity incentive plan will further enhance team cohesion and work together to help the company's optical business continue to expand and grow.
The profit of the optical business has increased, consolidating the core position in the field of ADAS cameras: the company continues to expand its market competitiveness and share in products such as in-car cameras and high-definition wide-angle lenses. With the increase in the proportion of revenue from high gross profit products such as in-car cameras, the company's optical business profitability continues to rise, with 22H1 optical business revenue reaching 1.51 billion yuan, + 49.4% year-on-year; gross profit margin increased to 27.5%, year-on-year + 9.6pct. At the same time, the company continues to consolidate its leading position in the industry of in-car ADAS cameras, increasing the shipping scale in terminal car companies such as Tesla, Inc., NIO Inc., BYD, Geely and well-known tier 1 manufacturers; 8m modules are produced smoothly, only for NIO Inc. 's seven 8m module products in ET7/ ES7/ET5, and 8m module products for BYD, while cutting into more shares in Tesla, Inc. 's new platform HW4.0. NIO Inc. delivered three models at the same time in the second half of the year, and BYD expects 22Q3 to begin to contribute increments, which is expected to drive the high growth of the company's car camera business and will burst out next year.
Invigorate existing resources to enhance business coordination, and optically create many kinds of growth points: the company transforms traditional touch display products into more profitable vehicle touch display products, invigorates existing resources to optimize traditional business, and enhances cooperation with optical businesses such as car cameras. In addition, the company actively arranges new high-growth optical tracks such as lidar, AR-HUD and VR/AR, and with the technical strength and customer resources accumulated in the car camera for many years, it is expected to create many kinds of medium-and long-term growth points around the optical business and continue to open up the growth space.
Investment advice: we expect the company's return net profit in 2022-24 to be RMB 350,000,000, corresponding to PE in 57-36-21, and to maintain a "buy" rating.
Risk hint: the intelligent upgrade of the car is not as expected, the terminal demand is not as expected, and the risk of not updating the information and data in time is studied and reported.