Yealink Network Technology Co.Ltd(300628)
Event overview
The company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company realized an operating revenue of 3.684 billion yuan, a year-on-year increase of 33.76%; The net profit attributable to the parent company was 1.616 billion yuan, a year-on-year increase of 26.38%. In 2022q1, the company achieved an operating revenue of 1.041 billion yuan, a year-on-year increase of 40.10%; The net profit attributable to the parent company was 487 million yuan, a year-on-year increase of 30.05%.
Analysis and judgment:
Desktop communication terminal business contributes 70% of revenue, and conference products and cloud office terminals are expected to open a new growth curve for the company
During the reporting period, the company's business lines made breakthroughs in new product launch and product iterative upgrading, and the product competitiveness continued to improve:
1) in 2021, the company's desktop communication terminal achieved an operating revenue of 2.547 billion yuan, with a year-on-year increase of 21.22%, a gross profit margin of 62.40%, and a year-on-year decrease of 3.44pct. SIP's market share has continued to rise to 34.3% since 2020, and the company has always been the first in the global market share;
2) in 2021, the company's conference products achieved an operating revenue of 913 million yuan, with a year-on-year increase of 72.77%, a gross profit margin of 62.27%, and a year-on-year decrease of 7.21 PCT. The company's Yilian integrated communication video conference platform YMS and Yilian conference have been newly upgraded, and a new smart conference room solution for future collaborative office has been launched. With the mitigation of overseas epidemic, the overall demand continues to pick up and improve, and the business revenue has achieved rapid growth.
3) in 2021, the company's cloud office terminal achieved an operating revenue of 221 million yuan, with a year-on-year increase of 80.35% and a gross profit margin of 48.71%, with a year-on-year decrease of 5.26pct. In 2020, the company officially established a separate cloud office terminal product line. At present, it has basically improved uh3x series wired headphones, wh6x series wireless headphones and other product series, and officially released bh7x series Bluetooth headphones in January 2022, further expanding the product matrix of the business line. In the future, it will continue to increase R & D investment in medium and high-end models and accelerate the opening of a new growth curve.
The fluctuation of exchange rate and the shortage of raw material supply affect the fluctuation of business gross profit margin. The gross profit margin in 2022q1 is slightly improved compared with the first three quarters of last year
In 2021, the company's comprehensive gross profit margin was 61.55%, a year-on-year decrease of 4.47 PCT, and the gross profit margin of each product line decreased in varying degrees, mainly because 90% of the company's business was overseas business, and the export was settled in US dollars, which had a great impact on the income and exchange gains and losses caused by exchange rate fluctuations, resulting in obvious fluctuations in the company's gross profit margin in a single quarter. From the change trend, the gross profit margin in 2021q1-2022q1 was 48.37% / 47.54% / 46.32% / 32.01% / 47.37% respectively, Affected by exchange rate fluctuations, the gross profit margin decreased significantly in 2021q4, and stabilized and improved in 2022q1 compared with the first three quarters of last year. In addition, the overall gross profit rate decreased slightly due to the rise in the price of raw materials such as chips, liquid crystal display equipment, plastic shell, PCB board and power supply in the upstream of the company.
The three expense rates have decreased, with long-term high R & D investment to build product competitiveness
In 2021, the company's sales expense rate / management expense rate / financial expense rate were 5.15% / 2.63/0.58% respectively, with a year-on-year increase of -0.16pct / - 0.09pct / - 1.14pct respectively; In 2022q1, the company's sales expense rate / management expense rate / financial expense rate were 3.91% / 2.05/0.48% respectively, with a year-on-year increase of -0.43pct / - 0.06pct / + 0.43pct respectively. Except for the financial expense rate of 2022q1, the three rates of the company decreased to varying degrees in 2021 and 2022q1. In 2021 and 2022q1, the company's R & D expenses were 365 million yuan (year-on-year + 23.27%) and 75 million yuan (year-on-year + 25.74%) respectively. The company always adheres to taking R & D investment, product innovation and technological innovation as the source power of sustainable development, adheres to high R & D investment and independent innovation for a long time, always maintains the foresight of technology, and realizes comprehensive independent R & D from the bottom to the application layer, from the system end to the terminal, and from software to hardware. Since its listing, the company's R & D investment has been on the rise, and the number of R & D personnel has also continued to expand. In 2021, the company's R & D investment increased by 23.27% year-on-year, accounting for 9.90% of operating revenue; The number of R & D personnel increased by 25.18% year-on-year, accounting for 50.12% of the total number of the company.
Based on unified communication, help the new trend of Mixed Office
With the rapid development of network communication technology and the catalytic effect of the epidemic, the demand of enterprise users for deploying unified communication and enterprise digital transformation is becoming stronger and stronger, and mixed office has become a new trend. At present, the company has formed a unified communication solution for intelligent hardware terminals and system platforms under three different office scenarios: personal desktop office, conference room office and personal remote mobile office: providing users with high-quality use and service experience through the three platforms of Yilian integrated communication video conference platform YMS, Yilian conference and audio and video integrated communication platform ume, as well as desktop communication terminal, conference product terminal Cloud office terminals and other intelligent hardware to meet the actual deployment needs of users, and finally form a unified communication solution covering multiple application scenarios, so as to provide enterprise users with efficient and intelligent office cooperation experience and help enterprises' digital transformation.
Launch of new smart office products and build a full enterprise communication capability matrix
On April 13, 2022, the company held the 2022 smart office new product launch. The four communication and cooperation capability matrices mainly promoted by the company, including professional conference, voice communication, efficient cooperation and smart office, can be flexibly combined, built on demand or all-round aggregation. The company will serve the whole industry with more all-round solutions. The company also launched seven new hard core products, including hybrid cloud video solutions that provide a new upgraded conference platform, conference tablet meetingboard, domestic voice solutions ume, dual lens 4K intelligent tracking camera uvc86, desktop integrated terminal deskvisiona24, BH series Bluetooth business headset and intelligent device / space management platform. The company will build a one-stop communication and cooperation scheme between government and enterprises through standardized hardware products and different software, so as to meet the changing needs of digital office and provide one-stop intelligent office immersion experience.
Investment advice
The company's SIP phone business has gradually expanded into the high-end market, and the VCs conference products have recovered from the epidemic. At the same time, the company continues to improve the office product hierarchy and matrix. It is expected that the cloud office terminal is expected to become a new growth point of the company's future performance. The profit forecast is adjusted. It is expected that the revenue from 2022 to 2024 will be adjusted from 43.5/54.0/n/a billion yuan to 4.58/57.2/7.13 billion yuan respectively, and the earnings per share will be adjusted from 2.3/2.9/n/a to 2.3/2.9/3.5 yuan respectively, Corresponding to the closing price of 76.00 yuan / share on April 24, 2022, PE was 33.1/26.6/21.5 times respectively, maintaining the "overweight" rating.
Risk tips
The uncertain impact of repeated outbreaks outside China; The impact of exchange rate fluctuations; The promotion of new products was less than expected.
