I have written many articles about Aladdin before:
Aladdin's investment logic combs through
Aladdin's three quarterly reports analysis
Aladdin's future key tracking project - Zhangjiang R&D Laboratory
Last night Aladdin announced the draft 2021 restricted stock incentive plan, and I knew that Aladdin today was almost certain to rise sharply.
On the one hand, as I analyzed in my previous article, Aladdin's performance growth rate in the third quarter was less than expected due to short-term factors, and the market overreacted to it, but it fully released the risk. The market is sometimes short-sighted and nervous, and a bad quarter feels like the end of the world. In fact, the company we work for ourselves can't say that the results of each month and quarter are very good? The company's operation will also have ups and downs, which is very normal, the key is to see whether the long-term competitive advantage is whether the moat has changed, and this is not a quarter can be decided.
On the other hand, this equity incentive is very powerful, dispelling the market's doubts about the lack of growth of the company, and greatly enhancing the confidence of holdings, so today's trading volume is very large, and a lot of funds come in to grab funds.
So what does equity incentives say?
█ The company used to incentivize this time is restricted stock, the number of shares is 1.25 million shares, the first grant of 1 million shares, leaving 250,000 shares for backup, the grant price is 40 yuan.
Here to explain what is restricted stock, which means that the company first gives the incentive object a certain number of shares, but these stock incentive objects can not be sold for the time being, and can only be sold after reaching a certain working life or performance target.
For example, if you are an incentive object, the company now directly into your stock account into 10,000 shares of Aladdin's stock, the current Aladdin stock price of 80 yuan, and you only need to spend 40 yuan / share of the cost can buy, now your account shows that your position profit and loss has nearly doubled, cool? However, you find that it is impossible for you to sell because the ten thousand shares are frozen, and if you want to sell, you have to work hard to achieve the company's overall performance goals to unlock the stock to sell. The advantage of this is that you can stare at these stocks in your hands every day, and you definitely hope that it will continue to rise, and you don't have to be given chicken blood by others, and you yourself will scream with excitement, so this incentive effect is a lever.
█The total number of people covered by this incentive object is 137, accounting for about 43.49% of the company's total number of 315 employees at the end of 2020, including important business and technical personnel who served in the company at the time of the company's announcement of this incentive plan. There are many incentive objects, close to half of the total number of people in the company, and the reservation of 250,000 shares shows that the incentive object can continue to expand, and those employees who have not been motivated will also work hard to obtain incentive qualifications. It is conceivable how much this incentive program will bring to the morale of the overall employees of the company. Therefore, the capital market is also very satisfied, and the sense of security of holding shares has increased greatly.
█The performance target disclosed in this incentive plan is the most critical factor to stimulate the rise of the stock price:
The trigger value is equivalent to the bottom value, which is the minimum completion target, and the target value is guaranteed to increase revenue by 186% until 2025. If the revenue scale is increased, the overall expense ratio can be reduced, so the growth rate of net profit is likely to be higher than the growth rate of revenue. And this incentive plan has been guaranteed until 4 years later, which is quite stable. The next step is to hold it in peace and wait for the flowers to bloom.