From the action plans of state-owned and centrally administered enterprises that are being progressively implemented, the overall process has accelerated, reflecting the confidence of central enterprises in high-quality development and operational capabilities, and it is expected to play a leading role in specific segments of the Industry.
Zhitong Finance APP has learned that Sinolink has released a research report stating that central state-owned enterprises are accelerating the implementation of the CSRC's Guideline No. 10. In November 2024, the CSRC issued the 'Guidelines for the Supervision of Listed Companies No. 10 - Market Cap Management', mentioning the lawful and compliant use of mergers and acquisitions, stock-based incentives, employee stock ownership plans, cash dividends, investor relations management, information disclosure, and stock repurchase to promote the investment value of listed companies, reasonably reflecting the quality of listed companies. From the action plans of the central state-owned enterprises being gradually advanced, the overall process has accelerated, reflecting the confidence of central enterprises in high-quality development and operational capabilities, and it is expected to play a leading role in segmented industries.
Sinolink Securities' main points are as follows:
Event 1: Beijing New Building Materials Public (000786.SZ) has released a draft plan for the 2024 restricted stock incentive plan, with new targets expected to exceed expectations.
On the evening of January 1, 2025, the draft plan for the 2024 restricted stock incentive plan aims to incentivize no more than 347 individuals, with the total number of stocks to be granted accounting for approximately 0.764% of the total share capital, with a grant price of 18.20 yuan/share. The performance conditions for exercising options include non-net profit attributable to the parent company of 4.56, 5.472, 6.567 billion yuan and requirements for ROE and other indicators for the years 2025-2027. Compared to the 2023 incentive plan, there are differences in terms of timing, targets, and participants.
(1) The new plan's target growth exceeds expectations. The incentivized personnel include the company's directors, senior management, and core staff, accounting for approximately 2.71% of the company's registered employees at the end of 2023, with a grant price of 18.20 yuan/share. The performance assessment requirements at the company level for this incentive plan are: Based on a non-net profit attributable to the parent company of 2023, the compound annual growth rates for the non-net profit attributable to the parent company for 2025-2027 should not be less than 14.22%, 16.12%, 17.08% (corresponding to 4.56, 5.472, 6.567 billion yuan), and the non-net asset return rates for 2025-2027 should not be less than 16.5%, 17.5%, 18.5%, and all the above data should be higher than the 75th percentile of benchmark enterprises or the average level of the industry. The estimated amortization costs resulting from this stock-based incentive amount to a total of 0.135 billion yuan, with expected amortization of 40.8716 million and 49.0459 million yuan for 2025 and 2026 respectively.
(2) Comparison of the differences from the 2023 incentive draft: ① The assessment period for the 2023 incentive was from 2024-2026, while this one is from 2025-2027. ② Regarding the incentive targets, the 2023 incentive calculated the corresponding targets based on the assessment values for the adjusted non-net profit attributable to the parent company for 2025-2026, which were 6.163 and 6.473 billion yuan, while this time it is 4.56 and 5.472 billion yuan, showing some adjustments from the previous values. ③ The number of stocks for senior management incentives has been slightly reduced, while the number for other core personnel has been slightly increased, for example, the proportion of stocks for the general manager's incentives has been updated to 0.72% (previously 0.85%), while for other core personnel (339 individuals), it has been updated to 82.58% (previously 79.81%).
Event two: Triumph Science & Technology (600552.SH) released the draft of its 2024 Restricted Stock Incentive Plan, which aligns with the direction supported by the State-owned Assets Supervision and Administration Commission.
On the evening of December 31, 2024, the draft of the 2024 Stock Options Incentive Plan proposes to grant stock options that represent approximately 1.92% of the total share capital. The performance conditions for exercising the options are set to not less than 0.27, 0.313, and 0.337 billion yuan for net income attributable to the parent company, excluding non-recurring gains and losses, from 2025 to 2027, as well as ROE and other indicator requirements. Compared to the 2023 incentive draft, the main changes include the performance exercise period shifting from 2024-2026 to 2025-2027, as well as changes to the incentive subjects.
(1) The total number of individuals proposed for incentives does not exceed 194, including company Directors, senior executives, etc., with a granting price of 12.13 yuan/share. The number of stock options proposed to be granted to the incentive subjects is approximately 18.1111 million shares, which is about 1.92% of the company's total share capital as of the announcement date of this incentive plan draft. The performance assessment requirements at the company level for this incentive plan are: net income attributable to the parent company, excluding non-recurring gains and losses, should not be less than 0.27, 0.313, and 0.337 billion yuan for 2025-2027; net asset return rate should not be less than 5.84%, 6.36%, and 6.43% for 2025-2027 respectively. The total amortization expense expected from this incentive is 76.61 million yuan, with an estimated amortization of 25.2813 and 27.5796 million yuan for 2025-2026 respectively.
(2) Compared to the 2023 incentive draft, the targets for net income attributable to the parent company excluding non-recurring gains and losses for 2025-2026 have not been adjusted. Regarding the incentive subjects, the total number of individuals in both incentive plans is basically the same. This time, the chairman's proportion of the total incentives has been updated to 0.93% (previously 1.38%), while the core management, business, and technical backbone have updated to 84.87% (previously 83.21%).
Event three: Shandong Pharmaceutical Glass (600529.SH) announced a possible change of its controlling shareholder.
On the evening of December 31, 2024, Shandong Pharmaceutical Glass disclosed that its controlling shareholder, the People's Government of Yiyuan County in Shandong, and China International Medical and Health Co., Ltd. are planning a restructuring of Luzhong Investment, which may involve a change in the controlling shareholder of Luzhong Investment. As of now, the aforementioned restructuring plan has not been finalized, and the approval results remain uncertain.
Risk warning: The pace of State-owned Enterprise Reform is not as expected, and there is the risk of fluctuations in raw material prices.
