\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 28 Yealink Network Technology Co.Ltd(300628) )
Event: Yealink Network Technology Co.Ltd(300628) released the annual report of 2021. In 2021, the company achieved an operating revenue of 3.684 billion yuan, a year-on-year increase of 33.76%; The net profit attributable to shareholders of listed companies was 1.616 billion yuan, a year-on-year increase of 26.38%. The company released the first quarterly report of 2022. 22q1 company achieved an operating revenue of 1.041 billion yuan, a year-on-year increase of 40.10%; The net profit attributable to the shareholders of the listed company was 487 million yuan, a year-on-year increase of 30.05%.
Comments:
The market share of SIP phones remained the first, and the market share was further improved. In 2021, the company’s desktop communication terminal achieved an operating revenue of 2.547 billion yuan, a year-on-year increase of 21.22%. Since 2017, the company’s product SIP Phone has always maintained the first position in the global market share, with the latest (2020) market share of 34.3% (Frost & Sullivan data from 2017 to 2020). The demand for desktop communication terminals mainly comes from the replacement of traditional analog communication by IP communication. Based on the replacement trend of this industry and the continuous improvement of the company’s competitiveness, the company’s business line has achieved rapid development. At the same time, after the covid-19 epidemic in 2020, enterprise telecommuting and digital transformation have become a trend. Although some offline personal desktop office scenes have been replaced by telecommuting, the epidemic has accelerated the needs of various enterprise users for digital transformation. We believe that in the future, the company will strive to further improve its market share and maintain its position as an industry leader.
Cloud office terminals achieve high growth and provide a new growth curve. In 2021, the company’s cloud office terminal achieved an operating revenue of 221 million yuan, a year-on-year increase of 80.35%. In order to meet the rapidly growing market demand, the company officially established a separate cloud office terminal business line in 2020. At present, the product line is still in the early stage of development. Relying on the brand reputation, technical advantages and channel advantages accumulated in the enterprise communication market for many years, the company has maintained rapid development since its establishment. The main products of cloud office terminal include business headset, portable conference phone and personal mobile office camera, mainly business headset. We believe that as the company increases R & D investment, improves product matrix and successively launches medium and high-end models, it is expected to continuously improve product competitiveness.
Multiple incentive mechanisms should be developed simultaneously to ensure long-term growth. In terms of talent incentive, the company launched the business partner incentive fund plan in 2021, and will officially establish the business partner shareholding plan in 2022. At the same time, a new phase of restricted shares will be launched in 2022. The multi-level long-term incentive mechanism established by the company will help to ensure the realization of the company’s development strategy and long-term business objectives and promote the long-term, healthy and sustainable development of the company.
Profit forecast, valuation and rating: we maintain the forecast of the company’s net profit of RMB 2.1592776 billion from 2022 to 2023, and the forecast of the net profit of the new company in 2024 is RMB 3.566 billion, corresponding to pe32x / 25X / 19x. We are optimistic about the development prospect of the company as a leader in the field of enterprise communication and cooperation. The multiple incentive mechanism is expected to maintain the long-term growth of the company and maintain the “buy” rating.
Risk warning: VCs market competition intensifies; Exchange rate fluctuation risk.
