Common People’s (603883) Equity Incentive Program Review: Establishing Pratt & Whitney Incentives to Accelerate Performance

Common People’s (603883) Equity Incentive Program Review: Establishing Pratt & Whitney Incentives to Accelerate Performance
Event: The company released a 19-year budget stock incentive plan (supplementary), and plans to implement a stock incentive plan by issuing shares to 208 people, including company executives and other core technical (business) personnel. Opinion: The incentive bill is inclusive, and it has obvious incentives for middle-level employees.The total number of stocks awarded in this plan is 181.80,000 shares, accounting for about 0 of the company’s total share capital.64%.From the scope of incentives, the 杭州夜网 shares awarded to senior executives account for less than 10% of the total number of plans, and at least 201 middle managers are planned to be awarded.We believe that although the total incentives of this scheme are not large, the general benefits are obvious, and the middle-level employees granted by the plan are 0 per capita.740,000 shares. Based on the current sustainable conversion, the per capita market value reaches 450,000 yuan. In the cumulative pharmacy industry (average annual income of middle class is about 200,000), this incentive maximizes competitiveness.If we consider that the company is in the expansion phase, the potential appreciation of the stock will change the incentive attractiveness. Increase the incentives for the middle level to promote the improvement of refined management.The “shareholding strategy for employees with wide-area coverage and deep constraints” proposed by our senior management is an important mechanism guarantee for the refined management of Yifeng Pharmacy, especially the binding of the interests of the middle-level team is an important means to maintain employee execution and consistency.Considering that ordinary people’s non-labor related management expense rate is as high as 2.16% (17-year data), while Yifeng Pharmacy is only 0.72%.Excluding the impact of incentive costs, ordinary people’s management expense ratio can also improve room. The assessment conditions correspond to 19?The company’s net profit will grow no less than 20% / 21% / 17% every year in 21 years. Higher growth rate shows development confidence.The company’s performance evaluation target for each year is set to 19?21-year net profit growth is not less than 20% / 45% / 70% compared to 18 years, and the annual income is converted to not less than 20% / 21% / 17%, which is an increase from the 17% annual increase in 2018.Higher assessment goals also demonstrate the company’s confidence in future development. Promote inclusive incentives, speed up performance can be expected to consider the uncertainty of the incentive plan, maintaining 18?The 20-year forecast EPS is 1.53/1.87/2.22 yuan, the current price corresponding to 19 years of PE is 32 times.The company promotes inclusive incentives to accelerate accelerated performance growth, improve refined management, and maintain a “buy” rating. Risk warning: the risk of goodwill impairment caused by the irregular integration of mergers and acquisitions; the speed of new mergers and acquisitions does not meet the expected risk.