Northern Huachuang (002371): Equity Incentives Demonstrate Performance Confidence
Event: North China Huachuang released the 2019 annual equity incentive plan budget. It plans to issue 4.5 million stock budgets and 4.5 million income shares to core technical personnel and senior management personnel.
The exercise price granted by the equity incentive plan to the stock budget is 69.
2 yuan / share, the grant price of the budget stock is 34.
6 yuan / share.
The implementation of equity incentives is strong, and performance conditions promote high growth.
The performance conditions granted to the stock budget and expected stocks this time are: 2018 revenue is not less than 26.
3 trillion, 2020, 2021, 2022 revenue based on the conditions granted in 2018, the average annual compound composition is not less than 25%, the corresponding absolute value is 41.
0 billion, 51.
300 million and 64.
1 ppm; 2020-2022 annual EOE (return on cash of net assets) is not less than 12%, R & D expenditure revenue ratio is not less than 8%, and annual patent applications are not less than 200.
The implementation of this equity incentive is highly competitive, so the corresponding equity incentive costs are also borne.
Assume that the company grants supplements and supplementary shares on November 12, 19, and the total amortization cost is 2.
300 million, an average annual amortization of 0 in 2019-2023.
4.6 billion, has a certain impact on the company’s annual net profit.
However, since fair incentives 南京夜网论坛 will greatly stimulate the incentives of the incentive objects and improve operating efficiency, the high-speed growth of performance will far exceed the increase in expenses.
North China Huachuang’s ultra-high growth in Q3 performance is in line with our previous judgment.
The company’s 19Q2 single-quarter performance growth slowed significantly, with revenue growth of only 11.
1%, the only growth rate of net profit attributable to mothers.
We believe that the growth rate of Q2 single-quarter results in this quarter will change under normal circumstances. Generally speaking, the second half of the year is generally the peak season for equipment industry purchases and strong resale orders. Therefore, the second half of revenue is generally higher than the first half.
The company’s 19Q3 revenue grew at a rate of 53 in ten years.
2%, net profit attributable to mothers increased by 83 in ten years.
The 0% ultra-high-speed growth fully reflects our gradual prediction, and we firmly believe that the trend of high certainty of progressive performance will not change.
Look at the certainty of the company’s performance from the leading indicators such as inventory and funds received in advance.
As of 19Q3, the company received funds in advance14.
600 million, inventory 35.
At the end of 2018, the company had 33 orders in hand.
600 million (electronic process equipment 32.
600 million + electronic components
Billion), which is basically the same as the ten-year revenue in 2018.
Inventory goods are the most important part of the company’s inventory, and the inventory goods are mainly composed of electronic process equipment related inventory.
Take the data at the end of 2018 as an example, company 15.
Of the 800 million items in stock, 12.
800 million products have been shipped for acceptance, which fully shows that the company’s order resale potential is huge, and gradually promote continued high growth.
Profit forecast and rating.
It is expected that EPS for 2019-2021 will be 0.86 yuan, 1.
50 yuan, 2.
Considering that the company is the leader of the domestic semiconductor equipment industry and merged the high prosperity of the domestic semiconductor equipment industry, we maintain the “Buy” rating.
Risk reminder: the risk that the amount of depreciation and amortization affects business performance, the risk of raising funds to invest in the project cannot meet the expected risk, and the risk of semiconductor equipment technology update.