Three differences explained. 1) Whether monthly data is required to track the company's operations. Through the three stages of “product-solution-scenario” development, the company is actually not demand-driven, or rather scarce supply-driven; 2) The reason for the high profit margin.

Through discussions on the disassembly of ASP, BOM, and cost rates, the unexpected situation of peer companies indirectly verifies the necessity of Yilian Network transformation solutions and scenarios against the marketing expenses of the target company; 3) Future prospects and spatial prospects for the three major business scenarios.

Yilian's online sales scenario is not just a product. The business model is high quality, and the performance stability is relatively good. The three-stage development of the business model increases stickiness. 1) 2012-2018 focuses on the product stage, core R&D and overseas channels, and segmentation of explosive products; 2) the 2019-2021 solution phase, development of cloud office solutions, changes in marketing levels, more collaborative organizational structures, etc.; 3) After 2022, the five core competencies are products, technology, channels, supply chain, and management systems.

One key to higher profit margins is the BOM cost advantage. Yilian Network's product sales price is at a world-class uniform level. The cost BOM has the advantage of the domestic supply chain, and the cost has dividends for domestic engineers; even the marketing expenses of the target company have indirectly verified the necessity of Yilian Network's transformation solutions and scenarios.

From a broader perspective, from a fixed income perspective, Yilian Network's dividend return combination and historical PB quantile still have an advantage.

The three product lines, from desktop communication terminals to smart conference rooms to cloud office terminals, meet the enterprise communication needs of three types of scenarios: fixed desktop office, conference room office, remote and mobile office. 1) Infrastructure (desktop communication terminals): Stock market, stable leading position (accounting for 37.5% in 23 years), seeking further increase in market share. 2) One of the second curves (conference products): There is at least 2 times more room, the penetration rate is low, and there is plenty of room to increase market share. Guided by complementing scenario requirements, competitiveness comes from UC's full-capability communication and collaboration matrix, partner ecosystem, and generative AI capabilities. 3) Second curve 2 (cloud office terminal): The market expects 60% space, the oligopoly pattern changes, and Yilian Network ushered in an opportunity.

Although it is in the early stages of development, it has formed a relatively complete product matrix, and has multiple advantages such as brand, channel, price, and technology.

Overseas growth space of over 30%, strategic layout of subsidiaries. The new normal, such as remote/hybrid work, stimulates corporate communication needs. In order to cope with potential external environmental impacts, a Singaporean subsidiary was established to expand business and improve resilience to risks.

Upgraded to “Buy” rating. According to the revised profit forecast, the company is expected to achieve operating income of 5.318/6.611/8.235 billion yuan in 24-26 (the previous forecast was 5.279/6.434/7.8 billion yuan) and net profit to mother of 2.515/3.13/3.88 billion yuan (the previous forecast was 2.431/2.943/3.549 billion yuan), corresponding PE is 20/16/13 times (comparable to the company's market value weighted average PE is 29/23/19 times). Comparable company's market capitalization weighted average PE in 2025 was 23 times, and Yilian Network's PE in 2025 was 16 times. There is a lot of room for growth, so it was upgraded from an “gain” rating to a “buy” rating.

Risk warning: the risk that the VCS/business headset business will fall short of expectations; the risk that the growth rate of the video conferencing industry will slow down and market competition will intensify; the risk of new product sales falling short of expectations; the risk of continuing exchange rate fluctuations and external emergencies.