Core Viewpoint - Yilian Network achieved growth in revenue and net profit attributable to the parent company in Q3 2025, indicating solid competitiveness in its core business areas [1] Group 1: Financial Performance - Revenue and net profit attributable to the parent company both experienced quarter-on-quarter growth in Q3 2025 [1] - The company maintains a strong market competitiveness in its core business areas, supported by good downstream market demand [1] Group 2: Product Development - The company launched a new generation of audio and video conference flat panel products featuring the industry's only imaging-grade smart quad-camera and second-generation self-developed audio algorithm [1] - New products introduced include the MeetingBar A40/A50 smart video all-in-one machine, Dante ceiling microphone CM50, SmartVision 80 smart tracking camera, and MCore4 video conference host [1] - The company is enhancing its business headset product lineup with the introduction of the new wired headset UH4X series, further enriching its product matrix [1] Group 3: Future Strategy - The company plans to continuously optimize its product structure and increase efforts in high-end market development [1] - There is a focus on deeply exploring niche market opportunities to maintain competitiveness in the phone market and achieve steady business growth [1] Group 4: Valuation - Based on comparable company valuations, a PE ratio of 20 times is assigned for the year 2025, corresponding to a target price of 43.06 yuan, with a maintained "buy" rating [1]

Investment Rating - The report maintains an "Outperform" rating for the company [4][10]. Core Insights - The company is projected to achieve revenues of 6.05 billion RMB, 6.66 billion RMB, and 7.34 billion RMB for the years 2025, 2026, and 2027 respectively, with net profits attributable to shareholders of 2.73 billion RMB, 3.05 billion RMB, and 3.39 billion RMB during the same period [4][10]. - The company has shown steady growth in Q3 2025, with revenues of 1.65 billion RMB, a year-on-year increase of 14.26%, and a quarter-on-quarter increase of 14.11% [11][12]. - The company continues to focus on user needs and product innovation, enhancing smart meeting experiences and developing comprehensive meeting room solutions [12]. Financial Summary - For the first three quarters of 2025, total revenue was 4.30 billion RMB, representing a year-on-year increase of 4.59%, while net profit attributable to shareholders was 1.96 billion RMB, down 5.16% year-on-year [11]. - The gross profit margin for Q3 2025 was reported at 61.96%, a decrease of 3.76 percentage points from the previous quarter [11]. - The company has introduced several new products, including next-generation audio-video conference panels and a new series of business headsets, aimed at enhancing performance across diverse business needs [12].

Investment Rating - The report maintains an "Add-B" investment rating for the company [1] Core Views - The company has shown a quarter-on-quarter improvement in performance, with a good growth momentum in cloud office terminals [1] - The company’s revenue for the first three quarters of 2025 reached 4.298 billion yuan, a year-on-year increase of 4.59%, while the net profit attributable to shareholders was 1.958 billion yuan, a year-on-year decrease of 5.16% [4] - The company is in a transitional phase due to changes in U.S. tariff policies, affecting the shipment rhythm of desktop communication terminals [5] - The SIP phone business has significant overseas market potential, and the company is focusing on optimizing product structure and expanding into high-end markets [5] - The company launched AI hearing aids, marking an expansion from B-end to C-end markets [5] Financial Performance - In Q3 2025, the company achieved revenue of 1.648 billion yuan, with a quarter-on-quarter increase of 14.26% and a year-on-year increase of 14.11% [4] - The gross margin for conference products reached 66.41%, contributing to performance growth [6] - The company’s revenue from conference products in H1 2025 was 1.076 billion yuan, a year-on-year increase of 13.17% [6] - The revenue from cloud office terminals in H1 2025 was 262 million yuan, a year-on-year increase of 30.55% [6] Profit Forecast and Valuation Analysis - The company’s projected net profit for 2025-2027 is 2.667 billion, 2.942 billion, and 3.462 billion yuan, respectively, with year-on-year growth rates of 0.7%, 10.3%, and 17.7% [8] - The estimated EPS for 2025-2027 is 2.11, 2.33, and 2.74 yuan, with corresponding P/E ratios of 16.2, 14.7, and 12.5 [8] - The report emphasizes the strong market competitiveness of the company’s products and the potential for AI capabilities to expand market share [8]