Securities Daily: Sany Heavy Industry plans to launch a stock incentive plan to distribute employee benefits again within the year

Following the employee stock ownership plan launched in March this year, Sany Heavy Industry launched a stock incentive plan of 377 million shares to distribute benefits to employees. In the general decline in the performance of the construction machinery industry, the generosity of Sany Heavy Industry is particularly concerning.

On the evening of October 18, Sany Heavy Industry released a draft stock option and restricted stock incentive plan, and the company intends to grant a total of 377,226,400 rights and interests to the incentive objects, involving shares accounting for about 4.96% of the company's total share capital. Among them, 317,226,400 shares were granted for the first time, accounting for 4.17% of the company's total share capital; 60 million shares are reserved, accounting for 0.79% of the company's total share capital.

Among them, the company intends to grant 267,631,600 stock options to the incentive object for the first time, reserve 48 million stock options, and grant part of the stock options for the first time at an exercise price of 5.64 yuan per share. In addition, the company intends to grant 49,594,800 restricted shares to the incentive object for the first time, reserve 12 million restricted shares, and grant part of the restricted shares for the first time at a grant price of 2.82 yuan per share.

The total number of incentive objects granted by the company for the first time in this incentive plan is 1,684 people, including the company's directors, senior managers, middle managers, and core technical (business) personnel who served in the company (including branches and holding subsidiaries) at the time of the company's announcement of this incentive plan.

In terms of performance appraisal targets, the annual performance appraisal targets for each year of the company's first grant of stock options are: the company's net profit in 2017, 2018 and 2019 will increase by 10% or more respectively compared with the previous year. The annual performance assessment target of the first grant of restricted shares is: the company's net profit in 2017 and 2018 will increase by 10% or more compared with the previous year.

This incentive is mainly aimed at the core management. At the beginning of this year, Sany Heavy Industry also launched a stock ownership plan for all employees. The plan will be carried out in two phases, and the total amount of funds planned to be raised is capped at 800 million yuan, and shares will be acquired by way of secondary market purchase. *5656 shares of the stock ownership plan subscribed for subordinated shares in equal amounts, and 2x leverage magnified returns. At the same time, Sany Group, the controlling shareholder of the company, guarantees the principal and income of the preferred share of the asset management plan, and the principal of the subordinate share, and the Sany Group guarantees the income of employees. Based on confidence in the company's development, *5656 employee stock ownership plan was welcomed by the company's employees, raising a total of 703 million yuan.

According to the analysis of Guoyuan Securities Research Report, the use of equity incentive method can realize the integration of the interests of management, employees and market value management, which is conducive to giving full play to the enthusiasm of management and employees and creating greater benefits for enterprises. At the same time, since the stock price in the secondary market and the grant price of equity incentives are almost the same, from the perspective of the game, there will be a positive feedback effect on the stock price in the short term, and the stock price is expected to rebound upward.

In addition, according to the national excavator sales data released by the Construction Machinery Industry Association in September, the sales volume of Sany Heavy Industry excavators in the domestic market and exports are stable *5656. According to market data, in the first three quarters, Sany also sat firmly in the top spot in domestic sales of excavators, and ranked second with a great advantage.

Analysts believe that after a long period of decline, the construction machinery industry has completed the survival of the fittest in the industry, the current industry risk has dropped significantly, customers and manufacturers have returned to rational development. After the cold winter, the road to the bottoming out of the industry has begun, and the inflection point has appeared. (He Wenying)