Dongfang Yuhong (002271) Company Research: Release of Large-Scale Equity Incentive Scheme Shows Development Confidence
The company released the third financial stock incentive plan.
It is planned to grant no more than 3296 to 2189 incentive objects.
61.29 million budget shares, accounting for about 2 of the company’s total share capital.
21%, the grant price is 10.
77 yuan / share; the source of the stock is the company’s shares purchased from the secondary market on its own by the company’s first level and the issuance of A shares of ordinary shares to the incentive object; the performance evaluation target is: 2020/2021, the net profit deducted from non-attribution should not be less than19.
91 trillion, 2022/2023 net profit is based on 2019, the growth rate is not less than 72.
8% / 107.
This equity incentive plan covers a wide range of objects, which is conducive to motivating the team.
At the company level, two additional stock awards were completed in 2013 and 2016, respectively. The number of awardees was 311 and 1,197 respectively. The number of people covered by the incentives this time was 2,189, which was significantly larger than the previous two.The company’s total employee ratio exceeds 25% (calculated based on the total number of employees at the end of 18 years); the launch of the third phase of the incentive plan helps the company to attract and retain middle management, core technology and business backbones, and enhances the motivation of the core team and stimulates the teamDevelopment motivation.
Performance appraisal target: 2020-2023, the average annual compound profit will increase by 20%, showing the confidence of development.
The evaluation period of this latest achievement is 2020-2023. Since 2020-2021 coincides with the second phase of the equity incentive plan, the performance evaluation goals are consistent with it, and the net profit is not less than 19.
91 trillion, 2022-2023 performance assessment based on 2019, the net profit growth rate is not less than 72.
8% / 107.
36%, that is, the average annual compound growth rate from 2020 to 2023 is not less than 20%. The conversion of the performance evaluation target reflects the company’s confidence in future development and performance growth.
With reference to the first and second phases of the equity incentive plan, the company has completed its performance appraisal targets in 2013-2018.
Investment suggestion: The company carried out strategic upgrades and organizational structure adjustments in the fourth quarter of 2018, and made relevant personnel adjustments accordingly. While continuing to strengthen its core competitive advantages, it sought a change of model while adjusting its business strategy to “stable operation and steady progress.”, Pursue more sustainable and excellent healthy 深圳桑拿网 development; at the same time, cultivate and create new business segments, and strive to achieve the transformation from “waterproof system service provider” to “building and building material system service provider”. Multi-category strategies have begun to emerge, and the company is expected to open a newOne cycle of growth.
We expect the company’s EPS for 2019-2021 to be 1.
49 yuan, corresponding to PE, 14, 11, 9 times; maintain “Buy” rating.
Risk reminders: Macro-scale policies and industry risks in the downstream real estate industry, raw material price fluctuation risks, market competition risks, and accounts receivable risks.