Zoomlion (000157) company comment： launch employee shareholding plan, perfect incentive mechanism, invest in agricultural machinery projects, and strengthen product competitiveness
Zoomlion (000157) company comment: launch employee shareholding plan, perfect incentive mechanism, invest in agricultural machinery projects, and strengthen product competitiveness
Zoomlion released the core operating strategic shareholding plan. The total number of people holding the shareholding plan does not exceed 1,200 (16 members from the board of directors and supervisors), and the stock source is 3 from the company’s share repurchase.
900 million shares at a purchase price of 2.
75 yuan / share (repurchase average price 5.
49% / share (50%), the duration of the shareholding plan is 48 months, and the unlocking will be started in phases after 12 months, with a maximum lock-up period of 36 months.
Ingeniously design performance assessment conditions and improve the medium and long-term incentive mechanism. The employee shareholding plan is based on the arithmetic indicator of the company’s return to parent’s net profit in 2017-2019, and the three-year net profit growth rate in 2020-2022 as the unlocking condition.
The first, second, and three unlocking conditions are respectively, in proportion to the base, the net profit growth rate from 2020 to 2022 is not less than 80%, 90% (or two years gradually not less than 170%), and 100% (or three years)Cumulative not less than 270%).
This employee shareholding plan evaluates the company’s performance for the current year and the performance for 2-3 consecutive years, which can effectively encourage the company to work hard and go all out to promote development.
Focus on incentives for earthmoving machinery, high-tech and agricultural machinery divisions, and effectively stimulate long-term development vitality. The total shareholding plan of this employee does not exceed 1,200 people, including 16 supervisors.While consolidating core business units such as cranes, tower cranes and concrete machinery, the heightened increase in the earthmoving machinery and aerial platform business units and agricultural machinery business units that have been newly developed in recent years will help the company cultivate new points of performance growth and ironing.Periodic fluctuations stimulate long-term development vitality.
In 2020, the demand for construction machinery will be stable, and the company’s core product market share will rise steadily. 1) Tower cranes: With the continuous promotion of prefabricated buildings, the demand for large tower cranes is strong, and leasers with large coverage areas are dominant.
2) Truck cranes: It is expected that the industry demand will remain stable next year, and the company’s market share will increase to more than 25% in 2019. It is expected that the market share will continue to increase in the next 2-3 years.Investment remains strong, supporting the demand for concrete pump 佛山桑拿网 trucks, increasing demand and environmental protection upgrades. Concrete machinery is expected to continue to maintain a high degree of prosperity.
The Wuxi viaduct incident drove strict overload management and boosted sales of small-tonnage mixer trucks.
Investment 20 in the next 6 years.
500 million US dollars to build agricultural machinery projects, gradually consolidating the competitiveness of agricultural machinery products companies issued project investment announcements, plans to invest 20 in 2020-2025.
USD 500 million to invest in the construction of an intelligent agricultural machinery industrialization project in Sanshan District, Wuhu City. It is planned to improve the company’s informatization level through intelligent equipment research and development, and use existing plants to integrate existing 合肥夜网 production lines, purchase necessary equipment, and realize China UnitedIndustrialization of heavy machinery intelligent agricultural equipment.
The company’s agricultural machinery business substantially reduced losses in the first half of 2019, and it is expected that long-term operating profits will turn losses. Next year, it is expected to make a positive contribution to performance.
Earnings forecast and investment grade: It is estimated that the company’s net profit attributable to the parent from 2019 to 2020 will be 4.5 billion and 5.5 billion, respectively. It will continue to focus on its attention and maintain a “buy” rating.
Risk reminders: Infrastructure investment is less than expected, real estate investment is less than expected, and industry competition is intensifying.