Core Viewpoint - The report from China Merchants Securities upgrades the rating of Baiguoyuan Group (02411) to "Buy," highlighting the company's stock incentive plan and management's share buyback plan as measures to enhance long-term motivation and attract talent, reflecting confidence in the company's long-term development [1][2]. Group 1: Shareholder Actions - The controlling shareholder, Yu Huiyong, plans to increase his stake in the company by purchasing up to 10 million H-shares within the next 12 months, currently holding 736 million H-shares, which represents approximately 36.8% of the company's total issued shares, indicating strong long-term confidence in the company's growth [1]. Group 2: Equity Incentive Plan - The company announced an equity incentive plan on December 1, 2025, granting 150 million restricted stock units to 14 employees, equivalent to about 8.27% of the total issued shares, with a grant price of HKD 1.8 per share and a vesting date of April 30, 2029, aimed at aligning the interests of employees with those of the company and shareholders [2]. - The vesting conditions are tied to performance assessments at both the company and individual levels, including business growth and key performance indicators, with provisions for forfeiture in cases of significant misconduct [2].