Zhongnan Construction (000961): Equity Incentives Continue to Overweight and High Growth Can Be Expected

Zhongnan Construction (000961): Equity Incentives Continue to Overweight and High Growth Can Be Expected

Core point of view: Once again increase the equity incentives, the highest level of incentives in the industry, the largest coverage company announced on the evening of May 30, 19, the 19-year equity incentive plan, plans to grant stock expenditure1.

3.8 billion shares, accounting for 3.

73%, leading the industry in incentives.

This equity incentive is mainly targeted at 486 key real estate business personnel. It complements the equity incentive plan for senior executives in 18 years, and gradually mobilizes the enthusiasm of the company’s employees to achieve continuous, stable and healthy growth of the company as a whole.

18 years to fulfill performance commitments, sustained high growth and significant confidence This distribution of incentives in three phases of exercise, exercise price of 8.

49 yuan / share, a premium of 0 over the closing price of May 30, 19.

twenty four%.

The company extends the evaluation target of the 18-杭州桑拿year incentive plan based on 17 years of net profit attributable to mothers. The growth rate of net profit attributable to mothers from 19 to 21 years is not less than 560%, 1060% and 1408%, corresponding to the scale of net profit attributable to mothers.39.

7.8 billion, 69.

91 trillion and 90.

8.8 billion, with an annualized compound growth rate of not less than 61% in 19-21, and the performance growth target maintained at a high level, showing the company’s confidence in the continued high-speed growth of value and scale in the future.

Sales from January to April remained stable, and the proportion of land acquisition equity rose significantly. The company achieved sales of USD 46.3 billion in April 19, a year-on-year increase of 29%, with a relatively stable growth rate.

The average value of land and land acquisition strength declined to a certain extent, but the proportion of land acquisition equity rose to 90% (52% at the end of 18), and the overall land acquisition effort remained stable.

The company’s EPS is expected to be 1 in 19 and 20 respectively.

08, 1.

89 yuan, maintaining the “buy” rating is expected to the company’s EPS in 19 and 20 respectively.

08, 1.

89 yuan, corresponding to PE is 8.

3x, 4.

7 times.

Taking into account the rapid growth of the company’s performance and sales, we believe that the upward forecast elasticity coefficient of Zhongnan Construction will increase to 10 in 19 years.

0XPE, the reasonable value is 10.

78 yuan / share.

Risks suggest that the industry’s fundamental prosperity is declining, and the city is entering a new trend of urbanization.