\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 28 Yealink Network Technology Co.Ltd(300628) )
The performance continued to grow steadily, in line with expectations. The company issued the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of about 3.68 billion yuan, a year-on-year increase of 34%; The net profit attributable to the parent company was 1.62 billion yuan, a year-on-year increase of 26%. In the first quarter of 2022, the company achieved an operating revenue of 1.04 billion yuan, an increase of 40% year-on-year; The net profit attributable to the parent company was 490 million yuan, an increase of 30% year-on-year; Net profit deducted from non parent company was 450 million yuan, with a year-on-year increase of 38%.
The gross profit margin has stabilized and rebounded, and the high operation quality is still outstanding. In 2021, the company’s gross profit margin was 61.55%, down 4.5 percentage points from 2020. The gross profit margin in the first quarter of 2022 was 61.8%, down 1.9 percentage points from the first quarter of 2021, but the range has been significantly narrowed. From 2021q1 to 2022q1, the single quarter gross profit margin is 63.75% / 62.07% / 60.7% / 60.37% / 61.8% respectively. The fluctuation of gross profit margin is mainly affected by non operating factors such as exchange rate / price rise of raw materials. We believe that the impact of these non operating factors on the company will gradually decrease, and the company’s own product expansion and share increase will be more fully reflected in the next few quarters.
Second, the growth curve is developing satisfactorily. By product line, in 2021, the company’s revenue from desktop communication terminals / conference products / cloud office terminals increased by 21% / 73% / 80% year-on-year respectively. Among them, new businesses such as conference products and cloud office terminals are developing well, accounting for more than 30% of the overall revenue. The cornerstone business desktop communication terminal still maintained a steady growth. According to Frost & Sullivan, the company’s global market share in SIP Phone shipments increased from 29.6% in 2019 to 34.3% in 2020, ranking first in a row, and may continue to increase in 2021. At the same time, the company has become the world’s fifth largest manufacturer of video conference system VCs products. While the basic business SIP phones are growing steadily, the new business (VCS / cloud office terminal) continues to increase, laying a solid foundation for the further development of the company in the future.
Profit forecast and Valuation: the company’s operation is stable, the development of each business line is good, and the second growth curve is open. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 2.21 billion yuan, 2.83 billion yuan and 3.53 billion yuan, corresponding to 31 / 24 / 20 times of the current share price PE respectively, maintaining the “buy” rating
Risk tip: trade friction intensifies and affects the company’s main business; The epidemic situation affects the demand of the industry; The shortage of raw materials affects the delivery.
