Jianlang Hardware (002791) Brief Evaluation Report: Employee Stock Ownership Plan Reveals Confidence in Growth of Hardware B Leading Leader

Event On the evening of December 4, 2019, the company released the first phase of the employee stock ownership plan (draft).

Participants of the employee shareholding plan are company directors (excluding independent directors), supervisors, senior management personnel, middle and senior management personnel of the company, core technology and business backbone personnel of the company, the total number of which does not exceed 250; the scale of funds raised does not exceed1 ppm; the source of the stock is the stock repurchased this year held by the company’s special securities account for repurchase, the number is 734.

620,000 shares, accounting for 2 of the company’s total share capital.

29%; the purchase price is the company’s average share repurchase price, which is 13.
.

61 yuan / share.

At the same time, the company announced its performance evaluation targets, requiring that the operating income decrease from 2016 to 2018 be the base. The company’s operating income growth rate from 2019 to 2021 should not be less than 55%, 95%, or 140%.

Our analysis and judgment of the employee shareholding plan announcement highlights the company’s long-term development confidence. We estimate that based on the company’s performance assessment goals, the company will require revenue of not less than 50 in 2019-2021.

33, 63.

31, 7无锡夜网7.

93 ppm, corresponding to a growth rate of 30 per second.

60%, 25.

81%, 23.

08%.

The company’s performance has continued to improve since 2019, and net profit attributable to mothers has grown. The company’s sinking layout of sales channels and the extension of product lines are the company’s growth drivers. At the same time, internal business expense management and other improvements have improved gross profit margins and promoted company profits.

The first employee stock ownership plan has higher performance assessment requirements, more incentives, a wider range and greater strength, which demonstrates the company’s confidence in long-term development and improves the certainty of performance improvement.

Channel sinking layout + new category expansion, performance is improved Channel new category expansion, 杭州桑拿网 channel sinking layout is accelerated, and the company’s performance is continuously improved.

Since 2019, the company continues to increase smart locks and other smart home, sanitary and hardcover room hardware products, and has begun to enter security, underground comprehensive pipe gallery, natural fire smoke and intelligent ventilation windows, labor safety protection products, fireproof and waterproof materials, mechanical and electrical equipmentWith precision instruments and other business fields, it can basically meet the one-stop procurement requirements for various types of construction hardware such as public buildings, commercial buildings, real estate, subways, airports, and pipe corridors.

19H1 company’s door and window hardware, furniture and stainless steel guardrail frame accessories revenue has increased for decades.

09% / 63.

32% / 42.

03%.

Among them, the high gross profit margin of door and window hardware is high, and the highest gross profit margin is +3.

07pct to 43.

49%, the proportion of income from 58.

88% increased to 60.

72%, driving the overall gross profit margin upward.

The company actively expands channel construction and currently has nearly 500 sales outlets at home and abroad.

At the same time, the company ‘s self-designed and developed one-stop building materials collection and procurement service platform “Jianlang Yuncai” for B-end customers runs steadily. The new business model of “online order + offline service” meets customer order requirements.It is expected that through the company’s product presence and information construction, the efficiency of the platform will be further improved, and the company’s channel management will be further optimized.

Investment suggestion: The company is positioned as an integrated supplier of construction hardware, with multi-category development, active expansion of channels, and R & D and strength leading the industry.

We estimate that the company’s operating income for 2019-2021 will be 50.

96, 64.

73, 80.

24 ppm, an increase of 32 in ten years.

25%, 27.

03%, 23.

96%; net profit attributable to mother is 3.

29, 4.
28, 5.
3.6 billion, an increase of 91 in ten years.

28%, 30.

06%, 25.

14%; corresponding P / E is 29.

4x, 22.

6x, 18.

1x, maintain “Buy” rating.

Risk warning: raw material prices are rising, industry competition is intensifying, and new products and new business expansion are less than expected.