Yealink Network Technology Co.Ltd(300628)
The company’s revenue and net profit increased rapidly in 2021. Affected by the epidemic and exchange rate fluctuations, the gross profit margin and net profit margin decreased slightly. The company officially disclosed the annual report of 2021, achieving a revenue of RMB 3.684 billion, a year-on-year increase of + 33.76%, and a net profit attributable to the parent company of RMB 1.616 billion, a year-on-year increase of + 26.38%. In terms of growth rate, the growth rate of revenue and net profit in 2021 is higher than that in the same period in 2020. On the other hand, Yilian’s gross profit margin in 2021 was 61.6%, down 4.48 PCT from 2020. The decline of the company’s gross profit margin was mainly affected by the epidemic and exchange rate fluctuations. However, at the same time, the company actively prepared goods and developed alternative solutions. The net profit attributable to the parent company in 2021 was 43.9%, down 2.57 PCT from last year.
22q1 single quarter net profit margin attributable to parent improved. Revenue side: Q1: the growth rate of revenue in a single quarter reached a new high; On a month on month basis, the company’s revenue is confirmed to be seasonal, and it is normal that the revenue in Q1 is slightly lower than that in Q4 of the previous year. Net profit: affected by the base period gross profit level and quarterly non recurring profit and loss fluctuations, the growth rate of the company’s net profit is lower than that of revenue, but the growth rate of deducting non net profit is similar to that of revenue. From the perspective of parent net interest rate, the company’s parent net interest rate in 22q1 was 46.74% in a single quarter, which was significantly higher than that in 2021. High demand boom and marginal improvement of adverse factors are continuously verified.
The company’s core business is basically stable, and the volume of new business can be expected. In 2018, the company became Microsoft’s global audio and video strategic partner. It is the only terminal manufacturer in the market that has obtained the certification of the three platform giants. While the differentiated layout of desktop communication products, its key customer advantages will help the company to further increase its share. On the other hand, the demand for video conference applications has increased, and hybrid cloud office has gradually become a new trend. At the same time, this year, the company launched the business Bluetooth headset bh7x with great strength, improved the product matrix, and injected new momentum into the second and third business curves.
We expect the company’s operating revenue in 2022, 2023 and 2024 to be RMB 4.83 billion, RMB 6.33 billion and RMB 8.34 billion respectively; The net profit attributable to the parent company is RMB 2.12 billion, RMB 2.75 billion and RMB 3.54 billion respectively, and the corresponding EPS is RMB 2.35, RMB 3.05 and RMB 3.92 per share respectively.
Risk tip: the recovery speed of overseas economy is lower than expected; Price fluctuation of raw materials; Exchange rate fluctuation risk.
