According to the phase II equity incentive plan (Draft) disclosed by Ledman Optoelectronic (300162. SZ) on the evening of September 2, the company will implement its equity incentive to its 248 personnel, including directors, senior executives, middle managers, core technicians and key employees. The number of stock options to be granted under the incentive plan is 12.503 million, accounting for about 3.58% of the current total share capital of the company. Among them, 10.503 million were granted for the first time, accounting for 3.01% of the current total share capital of the company, and 2 million were reserved, accounting for 0.57% of the current total share capital of the company. The source of the underlying stock involved in the incentive plan is the directional issuance of A shares of the common stock of the company to the incentive object.
Ledman Optoelectronic said that this incentive plan will help to further establish and improve the company's long-term incentive mechanism, attract and retain talents, fully mobilize the enthusiasm of directors, senior managers, middle managers and core technical (business) backbone personnel, and effectively combine the interests of shareholders, the company, the core team and individuals, so as to make all parties focus on the company's long-term development and improve the company's market competitiveness and sustainable development ability.
High performance appraisal goal demonstrated the company’s confidence in future growth
It is noteworthy that Ledman Optoelectronic has set high performance appraisal requirements in this incentive plan, indicating that the company is very confident in future performance growth. According to the announcement, the performance appraisal requirements of Ledman Optoelectronic's incentive plan are as follows: the operating revenue in 2020 based on the first exercise period, and the growth rate of operating revenue in 2021 is not less than 46.55%; the second exercise period is based on the operating revenue in 2020, and the growth rate of operating revenue in 2022 shall not be less than 132.04%; and the third exercise period is based on the operating revenue in 2020, and the growth rate of operating revenue in 2023 shall not be less than 254.16%.
If taking the company's operating revenue of 819 million yuan in 2020 as the example, it is not difficult to get the result that if the performance appraisal target is achieved, the operating revenues of Ledman Optoelectronic from 2021 to 2023 will be 1.2 billion yuan, 1.9 billion yuan and 2.9 billion yuan respectively, and the growth expectation is very high.
Judging from the actual performance growth, Ledman Optoelectronic is indeed in a period of rapid growth. According to the semi-annual report of 2021 recently disclosed by the company, the operating revenue and net profit attributable to shareholders of listed companies from January to June this year increased by 44.51% and 259.92% respectively, of which the sales of MicroLED ultra-high definition display products based on COB technology increased by 147%, and the sales of LEDHUB smart conference products with COB ultra-high definition display technology as the core also increased by 236% over the same period of last year. Next, Ledman Optoelectronic's COB products will also advance towards the trillion-level home display market, with greater growth potential.
Exercise price higher than the current stock price indicates the company has high potential to enhance its value
The exercise price of stock options in this incentive plan is not only not discounted, but also higher than the current secondary market stock price of the company. The announcement shows that the exercise price of the stock option of Ledman Optoelectronic's incentive plan is 10 yuan / share, which is significantly higher than the average stock trading price of 9.26 yuan / share on the trading day before the draft announcement, and also higher than the average stock trading price of 9.76 yuan / share on the 20 trading days before the draft announcement.
Some analysts believe that higher performance can support higher stock prices. Ledman Optoelectronic is very confident in high performance growth in the future, thus, it sets the exercise price higher than the current stock price. If Ledman Optoelectronic can successfully complete the performance appraisal objective set by equity incentive, the future value of the company will be much higher. From the perspective of development, the exercise price of 10 yuan / share is not very high.