Telling Holding(000829) 广发证券·2024-07-12 01:31Investment Rating - The report assigns a "Buy" rating to Tianyin Holdings (000829 SZ) with a target price of 9 55 yuan per share [4] Core Views - Tianyin Holdings is a leading omnichannel smart terminal service provider with a strong presence in both online and offline retail and distribution channels [2] - The company benefits from the recovery in consumer electronics demand particularly in foldable and AI smartphones and its dominant position as a distributor for major brands like Apple Huawei and Samsung [2] - The acquisition of WIKO allows Tianyin to extend its reach into the upstream smartphone supply chain leveraging WIKO s low-end market positioning and shared sales channels with Huawei [2][124] - The company s retail e-commerce business has grown rapidly with revenue growth exceeding 80% in the past two years reaching 183 billion yuan in 2023 [60] Company Overview - Tianyin Holdings started as a mobile phone distributor and has evolved into a comprehensive smart terminal service provider covering distribution retail and e-commerce [2] - The company operates over 1 800 Apple authorized stores and more than 1 000 Apple authorized specialty stores making it the largest supplier of Apple products on JD com [2] - It also manages over 1 400 Huawei authorized experience stores and 2 311 Samsung stores holding more than 50% of the domestic market share for Samsung [2] - The company s retail e-commerce business has expanded to 242 stores across various platforms by the end of 2023 [2] Industry Analysis - The smartphone market is recovering with foldable and AI phones expected to drive further demand benefiting Tianyin s distribution business [2] - The smartphone market is experiencing further price segmentation with opportunities in both high-end and low-end segments [2] - The stable competitive landscape and high entry barriers in the smartphone distribution industry favor established players like Tianyin [2] Financial Projections - The report forecasts net profits of 280 million 510 million and 750 million yuan for 2024 2025 and 2026 respectively representing year-on-year growth of 234% 83% and 46% [7] - Revenue is expected to grow from 117 8 billion yuan in 2024 to 158 3 billion yuan in 2026 driven by channel expansion and upstream integration [200] Strategic Initiatives - Tianyin has completed the acquisition of WIKO a French smartphone brand which allows it to enter the upstream smartphone supply chain and leverage Huawei s sales channels [124] - The company is expanding its retail e-commerce business with 242 stores across major platforms and a digital team that doubled in size in 2023 [118] - Tianyin is also developing its own brand "Yixiuge" for mobile phone repair services with plans to open 500 self-operated stores and 1 500 franchise stores in the next three years [199]