Yunnan Baiyao (000538) Company Research: The New Session of Dong Jiangao’s In-place Mixed Reform Takes Another Important Step

Yunnan Baiyao (000538) Company Research: The New Session of Dong Jiangao’s In-place Mixed Reform Takes Another Important Step

Event: On October 11, 2019, the company announced its employee shareholding plan (expense) and incentive fund management method (expenditure).

The employee shareholding plan intends 重庆耍耍网 to use 3.3 million shares that the company has repurchased (accounting for 0.

26%, about 2 at current prices.

500 million), no more than 485 employees, of which 13 are supervisors; the price is 37.

07 yuan / share, which is the average price of repurchased shares (74.

13 yuan / share), the lock-up period is 12 months, and the duration is 5 years.

Establish a company incentive fund, accrue 15% of the company’s annual net profit increase, and award it to leaders and other employees, of which 70% are directors, supervisors and executives; 30% are other personnel and core backbones; individual allocation must be assessedPosition coefficient, annual performance and on-the-job time; the constraint condition for the provision of incentive funds is that the company’s performance completion rate is above 90%, completion of 90% 杭州桑拿网 to not more than 100%, as appropriate, and completion of 100% and above.

  The employee shareholding plan was implemented, and Dong Jiangao and the participants obviously benefited, trying to activate the business.

The launch of the company’s plan means that the employee’s shareholding plan is basically finalized. From the absolute number of individuals participating in the plan, the senior vice president level is 4-6 million, and the average per capita outside Dong Jiangao is 440,000. It is attractive.The fixed lock-up period is only 1 year, and the subscription price is 37.

07 yuan / share, employees may have a high probability.

After the formal implementation of the plan, the enthusiasm of the company’s directors and supervisors and the core business backbones involved in the shareholding will be significantly improved. It is expected that the company’s operations will significantly improve and its performance will begin to accelerate.

  The previous suppression factor disappeared and exceeded market expectations.

The Air Force market generally believes that the company has repurchased a distance of 7.

The lower limit of the US $ 600 billion repurchase is far away, and it is difficult to implement employee shareholding without completing the repurchase, so keep an eye on 74.

34 yuan repo ceiling price, waiting for investment opportunities.

After the implementation of this plan, it is expected that the remaining shares may no longer be repurchased and replaced by a supplementary incentive fund, and investors do not need to consider 74 again.

The repurchase price of 34 yuan was eliminated in advance.

The company will elect the employee shareholding and incentive fund budget at the daily extraordinary shareholders meeting on October 29. If the proposal is successfully passed, it will enter the process phase in November, exceeding the market size expectation.

  Incentive funds have strong incentives, and the effect may exceed employee shareholding.

Since the incentive fund accrual amount is 15% of the current year’s net profit increment, assuming that the profit increment is 700 million and the completion degree exceeds 100%, the incentive amount will reach 1.

05 ‰, 70% allocated to Dong Jiangao and management executives, the amount is 73.5 million yuan, if the number of people is 25, the average income will reach 2.94 million yuan (tax payment is not considered for the time being); considering the incentive fund participants’ contributionThe purchase of shares has no lock-up period, and the amount is directly linked to the company’s performance and personal performance assessment. It is expected that the company’s directors and supervisors and management will complete their performance assessment indicators, improve the performance coefficient, and promote the company’s performance growth.

  An important part of the mixed reform has been implemented, and continuous growth is expected to start in 2020.

The company’s mixed reform is about to enter the harvest stage after the launch of this plan.

The implementation of short-term internal employee shareholdings and incentive funds is expected to involve executives and core backbones in their efforts to promote the development of existing businesses for the immediate benefit of the company. After the company absorbs and merges Baiyao Holdings in the medium term, the total number of cash and equivalents in 2019H1 will reach 129.

7 trillion, another 78.

100 million US dollars of transactional financial assets, the extension of the pharmaceutical and medical sectors may accelerate; Yunnan SASAC, Xinhuadu, Jiangsu Yuyue lock-up period until December 2022 and June 2023, the requirements and supervision of the three major shareholdersPromote pioneering leaders to achieve sustained growth in performance.

  Risk warning: toothpaste growth slows down; new product promotion, employee shareholding advances less than expected