China Merchants Securities (600999) Incident Review: Employee Shareholding Plan Reveals Confidence

China Merchants Securities (600999) Incident Review: Employee Shareholding Plan Reveals Confidence

Event: On October 15, the company announced the budget of the employee stock plan, and the subscription amount of the employee stock plan did not exceed 8.

08 thousand yuan.

  Maintain “overweight” rating and maintain target price of 22.

86 yuan.

The company intends to repurchase A shares for employee shareholding by means of centralized bidding, with the repurchase price not exceeding 26.

09 yuan / share (currently total 17).

10 yuan), the company’s employee shareholding plan subscription amount does not exceed 8.

08 billion, including Dong Jiangao, D-level personnel and above, and other core employees totaling no more than 1,157, with a lock-up period of 3 years.

This employee shareholding plan will optimize the company’s long-term incentive mechanism for employees, reflecting its confidence in the company’s long-term development, which will help improve estimates.

Maintain the company’s 2019-21 net profit forecast 61.

3/74.

5/89.

600 million, EPS 0.

91/1.

11/1.

34 yuan, + 69% / + 22% / + 21% in the past, maintaining a target price of 22.

86 yuan, corresponding to 19P / B1.

8X; the company is currently 19P / B 1.

35X, overweight.

The company launched a 1,000-person employee shareholding plan with an amount not exceeding 8.

0.8 billion yuan.

1) On May 20, 2019, the company’s shareholder meeting approved the company to repurchase A shares of the company through centralized bidding. The company intends to use the repurchased shares as the source of stocks for the implementation of the employee shareholding plan, and plans to repurchase the amount.

500 million to 1.3 billion, the repurchase price does not exceed 26.

09 yuan / share (currently total 17).

.
10 yuan), it is expected that the repurchased shares account for 0 of the company’s total share capital.

37% to 0.

74%, the repurchase period is May 20, 2019 to May 19, 2020.

2) The participants of this employee shareholding plan are directors and supervisors of the company or its wholly-owned subsidiaries, employees at the D level and above, and other core employees. The total number of employees does not exceed 1,157, and the total subscription amount of participants does not exceed 8.0.8 billion, of which the total amount of subscriptions by the 13 directors and supervisors of the company is about 62 million yuan, accounting for 8% of the total share.

The investment scope of the 南宁桑拿 capital management plan entrusted by the plan to the capital management plan established by the plan is mainly to purchase and hold A-shares of the company. The plan has a duration of 10 years, and the lock-up period of the target stocks is 36 months.

Enhance investor confidence and optimize long-term incentives for employees.

We believe that the company’s employee stock ownership plan involves comprehensive personnel, which will fully mobilize the enthusiasm of the company’s executives and core talents, attract and retain business backbones, and help the company’s long-term healthy and sustainable development.

At the same time, the company started a three-year employee shareholding plan at this time, reflecting its confidence in the company’s long-term development. Share repurchases and employee shareholdings helped the company scale up.

Catalysts: Increased market activity; capital market reform and innovation continued to advance.

Risk warning: credit risk of capital intermediary business; strict industry supervision.

Related Post