Yealink Network Technology Co.Ltd(300628)
Events
The company released the annual report of 2021 and the first quarterly report of 2022. By the end of 2021, the company had achieved revenue of 3.684 billion yuan, a year-on-year increase of 33.76%, net profit attributable to parent company of 1.616 billion yuan, a year-on-year increase of 26.38%, and net profit attributable to parent company of 28.09% after deduction. By the first quarter of 2022, the company had achieved a 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, with a year-on-year increase of 30.05%. After deducting non profits, the profit increased by 37.72%, and the profitability gradually recovered.
The company continued to strengthen the market competitiveness of products and steadily promoted various businesses
Since its establishment in 2001, the company has continued to focus on the field of enterprise communication and provide unified communication solutions for global enterprise users. From desktop communication terminal to smart conference room and then to cloud office terminal, the business uses intelligent hardware terminal to correspond to different segmentation scenarios to meet the communication needs of enterprise users in three scenarios: personal desktop office, conference room office and personal remote mobile office. The system platform provides high-quality use experience, forming an enterprise communication solution suitable for intelligent hardware terminal and system platform in different office scenarios.
Looking back on 2021, the company’s businesses are as follows:
Desktop communication terminal business: the revenue was 2.547 billion yuan, with a year-on-year increase of 21.22%, and the gross profit margin was 62.40%, a slight decrease of 3.43 percentage points over the same period of last year.
Video Conference business: the revenue was 913 million yuan, with a year-on-year increase of 72.77%, accounting for 24.8% from 19.2% in 2020, and the gross profit margin was 62.27%, down 7.21 percentage points from the same period of last year.
Cloud office terminal business: the revenue was 221 million yuan, with a year-on-year increase of 80.35%, and the proportion of revenue further increased to 6.0%.
The three expense rates are excellent, and the R & D investment continues to grow, laying the foundation for the competitiveness of the company’s products. By the end of 2021, the three expenses of the company are as follows:
The sales expense was 190 million yuan, a year-on-year increase of 29.8%, and the sales expense rate was 5.2%, which was basically the same as that in the same period of last year;
The management expense was 97 million yuan, a year-on-year increase of 29.2%, and the management expense rate was 2.6%, which was basically the same as that in the same period of last year;
The financial expenses are 21 million yuan, and the financial expenses of the company are mainly affected by exchange rate fluctuations.
The company continued to increase R & D investment. In 2021, the company’s R & D expenditure was 365 million yuan, a year-on-year increase of 23.3%. Meanwhile, the number of R & D personnel of the company continued to increase to 870, accounting for 50.12%. To sum up, we take the company’s medium and long-term development logic as the core and are optimistic about the company’s future growth!
Investment advice and profit forecast:
In the short term, the market demand faced by the company is recovering and the competition pattern is expected to change (poly, the company’s main global competitor, is acquired by HP). The company has faced the background of repeated epidemic, exchange rate fluctuations, raw material prices and other adverse factors in 21 years, and the subsequent profitability is expected to continue to improve! In the medium and long term, the company continues to maintain the iteration of various business products, which is expected to enhance the comprehensive competitiveness of the company.
We continue to emphasize that the company’s medium – and long-term development logic remains unchanged: 1) the company maintains continuous iteration of various products, and the competitiveness of comprehensive products continues to improve steadily, providing strong support for the company’s operation; 2) The increased demand for cloud office terminals and video conferencing is expected to inject new growth momentum into the company. We expect the net profit attributable to the parent company in 22-24 years to be about 2.119 billion yuan, 2.764 billion yuan and 3.573 billion yuan, maintaining the “buy” rating.
Risk tip: exchange rate fluctuations lead to the slowdown of the company’s revenue & profit, the intensification of competition in the desktop terminal & video conference industry, and the development of cloud office terminal business is less than expected
