\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 28 Yealink Network Technology Co.Ltd(300628) )
In 2021, new businesses become the core driving force for growth, and the competitiveness of products continues to improve. In 2021, the company's revenue and profit side maintained steady growth as a whole, thanks to the improvement of market competitiveness and continuous breakthrough in the market. In 2021, the company achieved an operating revenue of 3.68 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 attributable to the parent company after non deduction was 1.428 billion yuan, a year-on-year increase of 28.09%. The company plans to pay a cash dividend of 8 yuan (including tax) for every 10 shares. The ratio of the four major expenses to the revenue has decreased, benefiting from the scale effect brought by the company's revenue growth. The decline in profitability was mainly due to the negative impact of the rise in the price of raw materials and the fluctuation of the US dollar against the RMB exchange rate.
In terms of business structure, the market share of SIP phones has increased, and the revenue share of conference products and cloud office terminal products has continued to increase. In 2021, the sum of the two businesses has increased from 14.6% in 2019 to 30,9%. The corresponding increase in gross profit of the business has exceeded the increase in gross profit of desktop communication terminal business, becoming the core growth driving force of the company in the future. Looking forward to 2022, while continuously improving the competitiveness of intelligent hardware products, the company will continue to build the sales capacity of large projects and "platform + intelligent hardware terminal" solutions.
The first quarter of 2022 began to shine, and the gross profit margin increased month on month. In the first quarter of 2022, the company realized an operating revenue of 1.04 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%; The net profit attributable to the parent company after non deduction was 447 million yuan, a year-on-year increase of 37.72%. The overall performance is basically in the median of the forecast range. The month on month increase in gross profit margin is mainly due to 1. Continuous upgrading of product structure; 2. Product price increases; As the price of raw materials is still high, it has not recovered to the level of 2021q1.
A long-term stock incentive mechanism is proposed to be launched in parallel. The company launched a new issue of restricted stock, which maintained the continuity of equity incentive and was conducive to the long-term effective incentive of core employees. The performance appraisal objectives reflect the company's confidence in sustained and steady growth in the next three years. The business partner's shareholding plan sets the target of annual operating income growth rate higher than 30% and higher than the assessment target in the restricted stock plan, which is intended to lead the company's senior personnel to move forward to higher business objectives and fully mobilize the enthusiasm of senior personnel. At the same time, the plan sets the lock period and duration, which is also conducive to guiding the company's senior personnel to pay attention to long-term value creation and enhancing the stability and cohesion of the company's senior personnel.
Risk warning: possible adverse impact of US dollar exchange rate fluctuation; Overseas outbreaks affect business development.
Investment suggestion: lower the profit forecast and maintain the "buy" rating.
Based on the decline of the gross profit margin of each business under the influence of the rise in the price of raw materials, and taking into account the continuous increase in the proportion of subsequent new product lines, the profit forecast for 2022 and 2023 was lowered. It was originally estimated that the net profit attributable to the parent company from 2022 to 2024 was RMB 2.22/29/36 billion and adjusted to RMB 2.21/28/36 billion respectively, with the corresponding growth rate of net profit attributable to the parent company of 32% / 30% / 30% and PE of 32 / 25 / 19 times respectively. Optimistic about the continuous improvement of the market competitiveness of the company's products and solutions, and maintain the "buy" rating.
