\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 28 Yealink Network Technology Co.Ltd(300628) )
Event overview: on April 22, 2022, the company released the annual report of 2021 and the first quarterly report of 2022. 1) In 2021, the operating revenue was 3.681 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%; The net profit deducted from non parent company was 1.428 billion yuan, with a year-on-year increase of 28.09%. 2) 22q1 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 488 million yuan, a year-on-year increase of 30.05%; The net profit deducted from non parent company was 447 million yuan, with a year-on-year increase of 30.93%.
After excluding the impact of exchange rate, the revenue greatly exceeded expectations, and the gross profit margin continued to improve month on month
The revenue and profit of the company in 21 and 22q1 were seriously affected by the rise of the exchange rate of RMB against the US dollar and the rise of the price of raw materials respectively. According to wind, the average exchange rate between us dollar and RMB in 21 years was 6.45, 6.90 in the same period of 20 years, the average exchange rate between us dollar and RMB in 22q1 further dropped to 6.35 and 6.48 in the same period of 21q1. After excluding the impact of exchange rate fluctuations, the growth rate of the company's annual / 22q1 revenue in the same caliber was 43.12% / 42.87% respectively, which was much higher than the market expectation. Affected by the tight supply of raw materials such as upstream chips and rising prices, the company's gross profit margin in 21 years was under pressure, with a year-on-year decline of 4.47pct (61.55%), but we noticed that since 21q3, the company's gross profit margin has improved month on month for two consecutive quarters, with a gross profit margin of 61.81% in 22q1; At the same time, most of the company's Chinese suppliers and OEM factories are located in Fujian, and the supply chain is relatively limited affected by this round of Shanghai epidemic. On the expense side, the company's sales / management / R & D expense ratio in the past 21 years was 5.15% / 2.63% / 9.90% respectively, with a year-on-year decrease of 0.16pct/0.09pct/0.84pct respectively, reflecting the strong cost control ability under the scale effect. This trend continued in 22q1, and the company's sales / management / R & D expense ratio decreased by 0.43pct/0.06pct/0.82pct respectively.
Steady growth model, Q2 performance is expected to continue to exceed expectations
Most manufacturers in the communication industry are located in the middle reaches of the manufacturing industry. We have observed that since 2022, the problem of suppressed profitability of many enterprises has become more and more prominent due to tight supply chain and rising prices of raw materials. In the current market environment, we suggest investors to focus on brand factories located at both ends of the micro smile curve (R & D + sales, high added value) and in the oligopoly market (high barriers, good competition pattern), Such enterprises often have stronger supply chain management ability and higher bargaining power, and relatively stronger anti risk ability and profitability. Yilian is the leader among them. The company has always proved itself with good performance. When the epidemic affected production in the third quarter of last year, it still completed the growth target of equity incentive, which can be regarded as a model of steady growth. In 22q2, we saw the rapid appreciation of the US dollar against the RMB. According to wind, the closing price of the latest exchange rate on April 22, 2002 was 6.53, which was the best for the company's revenue, which was suppressed by the depreciation of the exchange rate over the past year. At the same time, the demand for overseas mixed office is still strong, and the company's performance is expected to continue to exceed expectations.
The second curve is beginning to emerge, and the long-term growth path is clear
In terms of products, 1) in 21 years, the company's desktop communication terminal achieved a revenue of 2.547 billion yuan, with a year-on-year increase of 21.22%. SIP telephone products ranked first in the global market for five consecutive years (Sullivan data, 34.3% in 20 years). 2) In the 21st year, the revenue of conference products reached 913 million yuan, with a year-on-year increase of 72.77%. In the 21st year, the company launched products such as electronic doorsector roompanel of multi-functional conference room for collaborative office, roomsensor of space occupancy detection sensor and roomcast, a multi-party wireless projection system, and joined hands with Tencent to launch the special Android all-in-one machine meetingbara20 / A30 for Tencent conference. 3) In January, the company launched four new wh6x series wireless DECT headphones, USB wired headphones uh34, USB phone MP50, USB webcam uvc20, professional broadband traffic headphones yhs34 and other new products. In January, the company launched a new bh7x series business Bluetooth headphones, making great efforts in the high-end audio market and creating a complete headphone product line. The business revenue of conference + cloud office terminal has increased from 23.62% in 20 years to 30.77% in 21 years. The growth momentum of the second curve is sufficient.
On April 13, the company held a new conference of intelligent office products and launched a number of heavy new products and solutions. We can roughly analyze the company's long-term development strategy. 1) In overseas markets, smart office hardware is comprehensively benchmarked with Cisco, and the value of each product is significantly improved. The company has launched Intelligent Collaborative conference tablet meetingboard, desktop all-in-one deskvisiona24 and bh7x business Bluetooth headset. We believe that the performance of Cisco's conference tablet webexboard, all-in-one webexdeskpro and Cisco headset is close to or slightly improved. For example, webexboard has built-in 12 microphone array and meetingboard has built-in 16 microphone array, which shows that the company's products are in line with the industry leader. More importantly, the price of the company's video conference products is much higher than that of traditional SIP phones, and the doubling of ASP is expected to open up the growth space of the company. In addition, Cisco and zooms provide integrated software and hardware solutions for different enterprises in the overseas office market. 2) China market, complement the ability of integrated solutions. The company has launched hybrid cloud video solutions and ume domestic voice solutions, which can realize cloud integration and multi scene coverage; Public cloud and private cloud are integrated, stable and reliable, and support large concurrency; Support a full set of localization schemes to ensure data security. The company's smart meeting room solution integrates the functions of meeting room space management, scheduling management, schedule viewing, automatic operation and maintenance, conference environment regulation and so on, so that people are no longer separated from space, equipment and data, data can be connected in series, and the management efficiency of the enterprise can be effectively improved. As the usage habits of Chinese users are quite different from overseas (cloud + terminal), they prefer integrated deployment. The company's move is intended to make efforts to break through key customers with solutions, and then open the long tail market through channel sinking.
Investment suggestion: as the only terminal manufacturer in the world that has obtained the certification of Microsoft teams, zoom and Tencent conference platforms, the company is scarce and is expected to benefit from the high prosperity of global mixed office and is optimistic about the long-term development of the company. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 2221 / 2914 / 3652 million respectively, the PE multiple corresponding to the current market value is 31x / 24x / 19x, and the valuation center of the company in recent five years is 41x. Maintain a "recommended" rating.
Risk tip: mixed office demand is less than expected; Price fluctuation of raw materials; Exchange rate fluctuations.
