Zhengbang Technology (002157) Company Comments: Focus on the beginning of breeding, do not change the stock incentive to show confidence

Zhengbang Technology (002157) Company Comments: Focus on the beginning of breeding, do not change the stock incentive to show confidence

Event: The company announced the stock incentive plan announced on December 25. The number of stocks to be encouraged by this incentive plan is 5,800.

0 million shares, accounting for about 2 of the company’s share capital.

36%.

Among them, 5,263 shares were granted for the first time.

0 million shares, accounting for 90 of the total to be granted under this incentive plan.

74%.

This is the grant price for the first time the program has awarded the best stock.

56 yuan.

Unlock sales restriction conditions: The 12th month after the completion of the first award of partially invested stocks will be lifted in two phases after the completion date. The proportion of lifting the sales limit in each period will be 50%; based on the number of live pig sales in 2019, the number of live pigs in 2020The sales volume is not less than 60% in the axial direction; the sales volume of pigs in 2021 is not less than 120% in the axial direction.

Incentives: Incentives include 1,392 directors, senior managers, middle managers and core technical (business) personnel (excluding independent directors, supervisors, and shareholders or actual controllers who individually or collectively hold more than 5% of the sharesEssential spouse, parents, children).

Amortized cost: The estimated equity expenses granted for 武汉夜网论坛 the first time total 39,998.

800,000 yuan, the estimated amortized cost for 2020-2020 is 27,499.

180,000, 11,666.

32 million, 833.

310,000.

How to interpret the performance guidelines in unlocked sales conditions?

First of all, using the sales volume of hogs as a core performance indicator fully reflects the company’s determination to expand its hog breeding business.

From January to November 2019, the company will gradually release 516.

580,000 pigs are expected to produce 5.5-6 million heads of pigs. According to the evaluation goals of the incentive plan, the company’s pigs will be no less than 8.8-9.6 million heads in 2020; 2021 will be no less than 1210-13.2 million heads.To reach the unlock condition.

From the sow inventory, the company has 65 sows at the end of 2019Q3.

30,000 heads (can multiply 淡水桑拿网 35.

20 thousand, reserve 30.

10,000), it is estimated that by the end of the year, the sow inventory will be about 1.2 million heads (capable of multiplying about 500,000 heads and backing up about 700,000 heads). According to the PSY 20 variable, the company’s forecast in 2020 will also exceed 10 million heads. The objective of the annual pig sales assessment target is practical.

Before the company’s assessment target, the number of columns was predicted to be slightly lower. We believe that it is a reasonable target after fully considering risks such as epidemic conditions, policies, and employee expectations. The core purpose of stock incentives is to increase employee motivation. This time, the number of employees involved exceeded 1,000.The core technical personnel account for a high proportion, so the practical target can be more effective in motivating.

Is the amortization cost allocation ratio reasonable?

The performance of hog breeding companies is closely related to the level of fluctuations in the price of the pig cycle. In 2019, affected by the epidemic, the industry’s production capacity was substantially eliminated. Therefore, we expect that 2020 will be the year with the highest certainty of the high pig price boom, and 2-3 years laterThe price of pigs should be determined according to changes in factors such as supplementary pens and epidemic conditions.

According to our forecast, the company’s net profit will be 94 in 2020.

21 ppm, the overall amortization cost has limited impact on performance, so we think the company’s 2020 amortization ratio will be reasonable.

Current company investment logic?

From the continuous follow-up situation, the company’s fundamentals have improved since the end of the third quarter of 2019. The number of listings has stabilized and rebounded from October to November, and the weight and average price of listings have returned to normal levels. In terms of epidemic prevention, from the initial learning to other outstanding companiesThe epidemic prevention experience has gradually transformed into an epidemic prevention system that suits its own situation.

As a late entrant to the pig breeding industry, we believe that the company will gradually accumulate experience in the early stages of exploration and learning, and the subsequent performance is expected to continue to materialize.

Risk reminder: the risk of large-scale epidemic disease or the risk of public health security events, the price of raw materials changes sharply, and the price of pigs drops sharply in the short term.