China Sports Technology (603679) event review: 2019 large-scale stock incentives to complete all smart street lights led by the company’s future performance can be expected


Event description: The company completed the suspension of granting 200,000 shares of 2 executive shares of the company, accounting for 0 of the company’s total share capital.


The reward price is 21.

26 yuan / share. The time for lifting the sales restriction is 1 year, 2 years, and 3 years from the date when the stock is granted.

The performance appraisal index is based on the average net profit of 2016-2018, and requires 2019?
In 2021, the net profit margin will be no less than 40%, 82% and 120%.


Comments: (1) The expansion of the stock incentive plan in 2019 is completed, accounting for a total of 1 share capital.


According to the assessment indicators, 2019?
In 2021, the company’s net profit needs to reach 80 million, respectively.

04 trillion and 1.

深圳丝袜会所2.6 billion.

The company has publicly raised executives for the first time on June 14, 2019. Six people, including middle management and technical business backbones, were included in the total 88 shares.

50,000 shares, accounting for 0 of the company’s total share capital.


The completion of the suspension granted to the company’s two executives shares totaling 200,000 shares, accounting for 0 of the company’s total share capital.


In the end, this equity incentive plan ends, and the company’s total share capital consists of 1.

01.9 billion shares increased to 1.

20.1 billion shares.

(2) The proportion of smart street light revenue continued to increase, and fair incentives showed the leadership’s confidence in future operations.

The smart street light orders in 2018 have successively confirmed 佛山桑拿网 revenue in 2019 and 2020, terminating the three quarterly report data, and the company’s revenue is 5.

25 ppm, an increase of 40 in ten years.


With the company’s cooperation with industry giants China Tower, Huawei, Tencent, etc., the value-added smart street lights continue to increase in the proportion of revenue, and gradually expand sales channels across the country. Revenue continues to grow, showing the company’s leadership on future performanceconfidence.

(3) Large-scale commercial use of 5G is imminent. The need to fill blindness will drive the construction of small and micro stations.

With the support of policies and the accelerated construction of the three major operators, the large-scale commercialization of 5G is imminent, and the urgent need to fill blindness will accelerate the construction of smart light poles.

As the industry’s scarce industry-wide layouter, the scale of orders and gross profit margin have fallen by a leading level, and the number of orders has gradually increased, driving the company’s revenue growth.


Profit forecast and investment advice: We expect the company’s achievable EPS for 2019-2021 to be 1, respectively.

46, 2.

27 and 2.

97 yuan, the current market value corresponds to only 17 times PE in 2020, and maintain a “strong recommendation” rating.


Risk reminder: The company’s order status is less than expected, 5G smart street lights are advancing faster than expected, the company’s gross margin is lower than expected, and cash flow is tight.