Text |Zhang Jiaru.
On February 19, Mingxin Xuteng's share price limit, **1705 yuan, the total market value is 277.1 billion yuan. Since the last trading day (February 8), Mingxin Xuteng's share price has gained two daily limits.
However, the performance of Mingxin Xuteng is hardly optimistic, and on February 6, Mingxin Xuteng's stock price hit 13A low of 59 yuan, a record low after listing. After 2 daily limits, Mingxin Xuteng's share price is still at a historical low.
On February 8, Mingxin Xuteng announced that it intends to terminate the 2021 restricted ** incentive plan, and for the reason for termination, the company mentioned that "at present, the company is close to or lower than the restrictive ** grant**".
In the incentive plan, Mingxin Xuteng has set performance targets from 2022 to 2024, of which the performance in 2022 is not up to standard, the performance in 2023 has not yet been released, the net profit data in the first three quarters has declined, and it is difficult to complete it throughout the year. Now, Mingxin Xuteng plans to cancel the incentive plan because of the stock price.
Mingxin Xuteng is a leading leather enterprise in the automotive industry, but the performance and stock price are so performing, what happened?
Mingxin Xuteng is an enterprise focusing on the research and development, clean production and sales of new materials for automotive interiors, and its products are mainly used in automotive seats, armrests, headrests, steering wheels, dashboards, door panels, headliners and other automotive interior parts of high-end automobiles.
Mingxin Xuteng has accumulated deep customer resources in the leather business of the interactive platform, and has entered the international mainstream car manufacturers such as Chrysler in the United States, Volkswagen in Germany, PSA in France, and FAW-Volkswagen, SAIC-GM, SAIC-Volkswagen, DPCA, SAIC-GM-Wuling, Geely, Great Wall, Changan, BYD, Chery, FAW Car, GAC, FAW Hongqi and other domestic mainstream vehicle manufacturing enterprises.
In November 2020, Mingxin Xuteng was listed on the Shanghai Stock Exchange, and this year, the company's revenue increased by 2281%, net profit attributable to the parent increased by 2297%。However, from 2021 to 2022, the company's revenue growth rate will decline to less than 5%, and net profit and non-net profit will continue to decline.
Among them, Mingxin Xuteng's net profit attributable to the parent company and non-net profit deducted in 2022 will decline significantly. As for the reasons for the decline, the company said that the decrease in sales orders for cow leather during the reporting period led to a decrease in the main business income corresponding to cow leather; The increase in raw materials** and the decrease in production led to an increase in unit costs, which in turn led to a decrease in gross sales margin; The increase in R&D personnel has led to an increase in R&D investment.
In order to change the downward trend of net profit, Mingxin Xuteng is committed to diversification. According to the medium and long-term development strategy, Mingxin Xuteng has expanded from a single automotive leather manufacturer to a diversified one-stop material supplier of leather, microfiber, PU and so on.
China Post ** said in the research report that the construction of Mingxin Xuteng microfiber production capacity has been accelerated to create a second growth curve. The company's existing production capacity is difficult to support the growth of customer demand, and it is expected to accelerate the intelligent manufacturing project of all-waterborne Dingdao microfiber new materials with an annual output of 8 million square meters, which is expected to bring incremental performance.
Mingxin Xuteng lays out the second growth curve, with the consideration of reducing costs and improving profitability.
According to the data, Mingxin Xuteng's main products are automotive leather and microfiber, of which the main raw materials of leather products are salted cowhide or wet blue cowhide and chemicals, and direct materials account for nearly 70% of the total cost; The main raw materials of microfiber products are non-woven fabrics and chemicals, and direct materials account for about 50% of the total cost.
The transmission of raw materials to downstream customers is limited, but the fluctuation of raw materials has a great impact on the operating performance of Mingxin Xuteng.
In 2022, Mingxin Xuteng microfiber leather products will grow rapidly. The annual report shows that the company's main business income increased by 1 year-on-year57%。Among them: the operating income of cowhide leather decreased by 10% year-on-year; The operating income of suede microfiber increased by 137% year-on-year, and the operating income of microfiber leather increased by 12,537% year-on-year.
The growth rate of microfiber leather products is relatively fast, but it is still a suspense whether Mingxin Xuteng can achieve net profit growth. In the first three quarters of 2023, Mingxin Xuteng's revenue increased by 1738%, net profit attributable to the parent company fell by 30%, and non-net profit decreased by 64%. What the full-year 2023 results will look like is yet to be disclosed.
From the perspective of secondary market performance, after Mingxin Xuteng was listed, the stock price was around 30 yuan. In recent months, Mingxin Xuteng's share price has fallen significantly.
On October 10, 2023, the company's share price reached a maximum of $32, however, on February 6, 2024, the company's share price was the lowest at $1359 yuan, a record low.
Changes in stock prices have affected the implementation of incentive plans. On February 8, Mingxin Xuteng said that in view of the large fluctuations in the company's stock price since the implementation of the incentive plan, the company is currently close to or lower than the restrictive grant in 2021, and it is difficult to achieve the incentive purpose and effect of the original plan by continuing to implement the incentive plan, and it is planned to terminate the incentive plan.
According to the previous incentive draft, the restrictive grant of the incentive plan (including reservations) is 17. per share63 RMB. That is, after the grant conditions are met, the incentive object can be 17. per share$63 ** to purchase the company's A shares of ordinary shares.
In the incentive plan, the assessment year corresponding to the lifting of the restriction on sales granted for the first time is 2022-2024, and the performance appraisal objectives are:
Based on the operating income and net profit in 2021, the growth rate of operating income in 2022 shall not be less than 20%, and the growth rate of net profit shall not be less than 10%; In 2023, the growth rate of operating income will not be less than 44%, and the growth rate of net profit will not be less than 21%.
Mingxin Xuteng said that the above-mentioned "net profit" indicator refers to the audited deduction of non-net profit, and the value after excluding the impact of incentive costs caused by incentive matters is used as the basis for calculation. The above performance appraisal targets do not constitute the company's performance** and substantive commitment to investors.
The data shows that in 2022, Mingxin Xuteng's revenue will be 85.6 billion yuan, a year-on-year increase of 424%, deducting non-net profit of 36370,000 yuan, down 97% year-on-year. In April 2023, Mingxin Xuteng announced that the company-level performance in 2022 did not meet the performance assessment target.
At present, Mingxin Xuteng's performance data for 2023 has not yet been released, and the non-net profit deducted in the first three quarters fell by 64% year-on-year. In the first three quarters of 2022, Mingxin Xuteng's non-net profit fell by 72%.
It is not difficult to see that Mingxin Xuteng's non-net profit deduction continues to decline, and only from the data of non-net profit, Mingxin Xuteng's growth and completion of the assessment target in 2023 will be more challenging.
At present, Mingxin Xuteng announced that it intends to terminate the incentive plan due to stock price reasons, and this matter still needs to be submitted to the company's general meeting of shareholders for deliberation.
We will keep an eye on how Mingxin Xuteng will perform in the future.