Yili shares (600887) quick review of major events: equity incentive landing focused on medium and long-term development

Yili shares (600887) quick review of major events: equity incentive landing focused on medium and long-term development

Matters: The company announced the launch of an incentive stock incentive plan. Specific contents: 1. The company intends to award incentive stocks to the company.

8.3 billion shares, accounting for 3.

0%; 2, the price of the granted stock is 15.

46 yuan / share; 3, the unlocking period of the incentive plan is 12 months, 24 months, 36 months, 48 months, 60 months from the date of grant, and the unlocking ratio is 2: 2: 2: 2:2. Performance evaluation conditions for incentive plan companies: Based on 2018 net profit, the net profit conversion in 2019-2023 will not be less than 8%, 18%, 28%, 38%, 48%, and the return on net assets will not be low.At 15%, net profit refers to the net profit attributable to non-recurring gains and losses attributable to shareholders of the listed company, and the value excluding the impact of share payment expenses of this and other incentive plans is used as the basis for calculation.

Opinions: Incentives help benefit constraints, and promote leadership motivation. According to the company’s equity incentive plan, 474 incentive objects were granted company shares.

8.3 billion shares, accounting for 3% of the total share capital, of which Chairman Pan Gang was granted 60.8 million shares, Liu Chunhai and Zhao Chengxia were granted 10 million shares at an exercise price of 15.

46 yuan / share, the unlocking ratio of the stock budget after 1/2/3/4/5 years from the grant date is 20% / 20% / 20% / 20% / 20%.

Looking back at the previous repurchase and equity incentive process, the company announced a repurchase plan in July 2015, and until November 2015 paid 1 billion to repurchase the company’s total shares.

04%, and then in December 2016 the company carried out equity incentives, granting a total of 60 million equity (including 45 million stock options and 15 million income stocks) to the incentive objects, accounting for 1% of the total shares, and the corresponding incentive object was 294 people.

In comparison, the share repurchase was 3%, and the average repurchase price was 31.

67 yuan / share, the repurchase scale has increased significantly to 58 million US dollars, and 474 people have been significantly expanded compared to the last time. It basically covers the company’s directors, executives, technical backbones and other core management teams. The evaluation of indicators takes into account both company and individual evaluationIndicators are beneficial to bind stakeholders, stimulate internal vitality, enhance market competitiveness and strengthen the leading advantages of the dairy industry.

The unlocking goal is stable, and the probability competitiveness competitiveness incentive performance indicator is taken into account after 失败:重查 considering the booth costs. Based on the 2018 net profit, the growth rate of net profit in 2019-2023 is 8% / 18% / 28% / 38% / 48%, which is 2019.-2023 is growing at least 8% / 9 per year.

3% / 8.

5% / 7.

8% / 7.

2%, five-year compound growth rate of 2019-2023 is not less than 8.

2%, according to the budget, the total share payment fee for the incentive plan is 22.

150,000 yuan, the 2019-2024 equity amortization expense is expected to be 1.






7.4 billion US dollars, considering the net profit is deducted and excluded the incentive share payment expenses caliber, 19-23 year deduction of non-profit growth target of about 6% / 0% / 14% / 11% / 9%, the company merger industry competitionThe profile and the medium-to-long-term development rhythm have set steady targets. Through 南京夜网 the continuous channel penetration of the core products of the company’s core products and the incremental contribution of endogenous and multi-category business, the company maintains confidence in the company’s long-term development.

Maintaining the established strategic development, sales maintained a good momentum in the second quarter. From the point of view of Q1 business, the liquid milk business income was 189.

600 million, accounting for 82% of revenue, of which Amundi reached 47.

100 million, accounting for 24 of liquid milk.

8%, the same increase over 30%; milk powder and dairy products business realized income of 25.

500 million, accounting for 11%, an increase of 0 from last year.

9 points, of which the gold-collar crown increased by more than 30%, and the variety show was popular in Hunan Taiwan, the market exposure increased; the cold drink business achieved revenue of 15.

0 million yuan, accounting for 6.


The company continues to innovate and promote the upgrading of finished products, planting selection of PET, Anmuxi orange orange pineapple, Jindianjuanniu, Yiran Dairy, Huanxingyuan and other new products to contribute incremental.

The newly established health drinks division and cheese division are expected to continue to widen their categories in the future.

Kantar data shows that the company’s Q1 market penetration rate is 64.
3% far exceeds the industry level, with a comprehensive market share of 25.

6% ranks first in Asia, of which room temperature acid, high-end white milk and milk powder continue to increase.

The study found that since the second quarter, sales of core single-products such as Anmuxi and Jindian have maintained a good momentum, and overall sales have maintained double-digit growth. The pressure on raw milk costs has improved due to the increase in price caused by product structure upgrades.Exceeding the base of sales expenses, the profit elasticity is higher than Q1.
Profit forecast level The company insists on product upgrades, deep cultivation of channels, and milk source control will help alleviate upward pressure on raw milk.

Endogenous and extensional development is moving towards the top five hundred billion target, with broad value space, and incentives are conducive to energizing participation.

Considering the impact of amortization costs, the EPS for 2019-2021 is reduced to 1.



50 yuan, corresponding to 26/24/21 times PE, a reasonable one-year estimate of 32.


8 yuan, maintain “Buy” rating.

Risk warning: rising raw material costs; increased market competition; new product sales fail to meet expectations; risk warnings of rising raw material costs; increased market competition; new product sales fall short of expectations