AVIC Optoelectronics (002179) Incident Review: Equity Incentive, Long-term Military Industry White Horse Starts Again

AVIC Optoelectronics (002179) Incident Review: Equity Incentive, Long-term Military Industry White Horse Starts Again

Event: The company released the A-share budget stock incentive plan (second phase), and plans to award 3,206 to a total of 1,215 people including 1215 people, including some directors, senior managers, middle managers, core technical (business) personnel, and senior managers and core backbones.

50,000 shares, accounting for about 2 of the company’s total share capital.

9963%, the grant price is 23.

43 yuan / share.

The scope of incentive objects is expanded, which is good for the company’s long-term 北京洗浴会所 development.

The total number of proposed incentive targets for the second phase of the equity incentive plan (supplementary) announced this time is 1,215, which basically covers the company’s middle-level and above managers and core backbones, which is more than the 266 people granted in the first phase of the equity incentive plan.

We believe that expanding the scope of incentive objects can bind more people to the company’s interests, help fully mobilize the enthusiasm of leaders and key employees, and benefit the company’s long-term development.

Unlocking conditions are more stringent, and performance evaluation shows confidence.

The unlocking conditions for the second phase of the equity incentive plan (supplemental) announced this time are: the return on net assets in the financial year immediately before the unlockable date is not less than 13.

60%, and not lower than the benchmark company’s 75th percentile; the net profit of alternative non-recurring gains and losses attributable to shareholders of the listed company in the financial year immediately before the unlocking date is no less than 10 compared with the 2018 compound year.

00%, and not lower than the 75th place value of the benchmarking enterprise; the completion of the EVA index of the financial year before the previous day can reach the assessment target issued by AVIC, and △ EVA is greater than 0.

In this period of equity incentive plan (draft), 21 listed companies related to AVIC Optoelectronics’ main business are selected as benchmarking companies in the same industry, including international connector leading companies such as Tyco and Amphenol.

We believe that the unlocking conditions for the second phase of the equity incentive plan are more stringent than the first phase, which demonstrates the company’s confidence in future performance growth.

As a leading military connector company in the domestic aviation industry, AVIC will fully benefit from the accelerated advancement of national defense informatization construction.The promotion of 5G communications, new energy vehicles, rail transit and other high-boom industries will drive the continuous growth of civilian products, liquid cooling, and high-speed backplaneSuch new field layout will create more profit growth points.

Profit forecast and investment grade: The company’s net profit for 2019-2021 is expected to be 12.

1 billion, 14.

310,000 yuan, 16.

51 ppm, EPS is 1.

18 yuan, 1.

39 yuan, 1.

61 yuan, corresponding to PE is 35 times, 无锡桑拿网 29 times, 25 times, maintaining the “Buy” rating risk warning: military orders are less than expected; 5G construction progress is less than expected; the new energy vehicle industry’s prosperity decline