Zhongshun Jierou (002511) Company Dynamic Comment: Announces Supplementary Equity Incentive Supplementary Program, Core Team Increases Momentum

Zhongshun Jierou (002511) Company Dynamic Comment: Announces Supplementary Equity Incentive Supplementary Program, Core Team Increases Momentum

Part of the equity incentive plan was released, and the multi-faceted core team was bound.

The company announced an equity incentive supplement supplementary reward plan, in which 114 incentive objects were awarded 2.4 million stock budgets at an exercise price of 14.

04 yuan / share; awarded 3.5 incentive stocks to 64 incentive objects at a grant price of 7.

02 yuan / share.

Incentives include director Liu Jinfeng, deputy general manager of the company’s core figure, and middle and senior management personnel responsible for sales, procurement and production.

The total 天津夜网 amortization expenses for 2019-2022 will be RMB 4.01421 / 417/743/328 million respectively.

The equity incentive rights grant date is September 11, 2019.

Liu Jinfeng’s shareholding ratio has risen to a high base of budget exercise price to stimulate momentum.

After the partial award of the emerging incentives, Liu Jinfeng’s shareholding rose to 381.

40,000, the shareholding ratio increased by 16bps to 0.

29%, further tied to the company’s interests.

The first budget exercise price is determined based on the company’s historical transaction price. As the company is about to greet its recent performance, the exercise price and price14.

04 yuan is higher than the closing price of 13 on September 11.

64 yuan / share, this incentive promotes to fully motivate the company’s core team and help the company continue to grow.

杭州桑拿 The pulp price remains low to support the company’s profitability, and product differentiation marketing is in place for a long time.

Judging from Zhuochuang’s data, the international quotations of coniferous pulp and broadleaf pulp are still on the downward path. In September, the quotations were 570 and 480 US dollars / ton, and the port inventory was 1,290,000 tons, which was still high.

The company has seized the consumer’s upgrade of tissue touch, and differentiated products such as Face & Lotion have overlapped with the leading position in the high-end tissue market.

From a follow-up point of view, the company uses the new bamboo and wood pulp product Sun, which is expected to gain key cost advantages in low-end market competition.

We believe that the company’s market share is expected to expand steadily in the next 3-5 years, and the industry scale will gradually increase.

Investment suggestion: In the long run, the sun is in the blank of the 2C low-end market, and there is ample room for commercial consumption. The stable distribution of shifting production capacity and the continuous introduction of new products, the company’s market share continues to increase, and the room for growth is broad.

The elasticity of wood pulp prices to release profit has been continuously verified, and the company’s EPS is expected to be 0 in 2019-2020.

49, 0.

61 yuan, corresponding to 28X, 22X PE, maintaining the “strongly recommended” level.

Risk reminders: the risk of rising raw material prices; less-than-expected capacity release; industry capacity expansion exceeds demand and increased competition; less-than-expected expansion of product expansion categories; and less-than-expected marketing channel construction.