Investor's Network" Xie Yingjie.
With the market rumors that Honor intends to go public through a backdoor listing, Telling Communication Holdings Co., Ltd. is hereinafter referred to as "Telling Holdings", 000829SZ) has recently been ** in the spotlight again.
The description that Honor Terminal may be listed on the backdoor basis of the Company is inconsistent with the facts. "Despite the clarification announcement, Tianyin Holdings has still experienced a wave of skyrocketing**, with a cumulative increase of about 60% in the past month, and the latest stock price has come to around 12 yuan shares.
Going back, the stock hovered at a high of around 25 yuan shares for a long time in the second half of 2021, but in the past two years, the stock price has rarely exceeded 20 yuan shares. Behind the fluctuations in the secondary market, the growth dividend of smart phones in the domestic and foreign markets is gradually disappearing, and the profitability of downstream channel providers has begun to be compressed, and the competitive environment in the industry has become more intense.
As a leading domestic distributor, Tianyin Holdings is not satisfied with the position of the top merchant at the end of the industrial chain, but chooses to expand upstream to obtain new growth points for the business. Up to now, it has developed into a group company across three major industries: communications, retail e-commerce, and lottery.
Refuting rumors of glory backdoor rumors
Tianyin Holdings disclosed a clarification announcement on November 21, saying that the description of the report's possible backdoor listing of Honor Terminal was inconsistent with the facts. After confirming with the controlling shareholder, the company and the controlling shareholder Shenzhen Investment Holdings*** do not plan the above-mentioned rumors or other major matters that should be disclosed and not disclosed.
At the same time as the above announcement, Tianyin Holdings said that its wholly-owned subsidiary, Tianyin Communication***, as an indirect shareholder of Honor Terminal, holds Shenzhen Star Alliance Information Technology Partnership, a shareholder of Honor Terminal1936% equity.
According to Qichacha data, in November 2020, Huawei gave the business assets related to the Honor brand to Shenzhen Zhixin New Information Technology, and the latter was jointly invested and established by Shenzhen Smart City Technology Development Group and more than 30 Honor merchants and distributors, and Shenzhen Star Alliance is one of the investors.
However, after refuting the rumors, the share price of Tianyin Holdings is still **, with a cumulative increase of more than 60% from October 25 to December 1, and as of November 30, ** reported 1230 yuan shares, with a total market value of 12.6 billion yuan.
The market frequently speculates that there is a certain equity relationship between the two companies. The actual controller of Tianyin Holdings is the Shenzhen State-owned Assets Supervision and Administration Commission, and one of the shareholders of Glory is also Shenzhen State-owned Assets.
In addition, Tianyin Holdings is not only a channel provider of Honor, but also a core business of Huawei. It not only has opened a number of Honor mobile phone after-sales stores, but also 1,500 Huawei authorized experience stores.
The business is cross-complementary and the shareholders are overlapping, and Tianyin Holdings also has its own mobile phone brand - WIKO, which officially released the first Hongmeng ecological smartphone WIKO 5G last year.
However, the current mainstream mobile phone brands have many loyal fans, and the market is not interested in small brands like WIKO, taking WIKO Tmall*** data as an example, the overall sales of mobile phones are 12 singles, and there are only 3 consumer evaluations.
Profitability to be repaired
Similar to the latest trend, Tianyin Holdings staged a huge earthquake in September 2021**. According to the announcement at that time, the company planned to participate in the joint acquisition of a mobile phone brand business, and the scope of the acquisition was intended to involve brand trademarks, research and development and ** chain, etc., which was currently in the early stage of negotiation and planning.
This has led to rumors in the market that Tianyin Holdings wants to acquire the Honor brand. Tianyin Holdings immediately received a letter of concern from the Shenzhen Stock Exchange, requesting clarification on whether there was information leakage or insider trading, and whether it was related to the shareholder plan.
Behind the fluctuations in stock prices, the growth dividend of smartphones in the domestic and overseas markets is gradually disappearing. The market has shifted from the blue ocean to the red ocean, and the profitability of downstream channel providers has begun to be compressed, and the competitive environment in the industry has become more intense.
From 2018 to 2022, the operating income of Tianyin Holdings was 424700 million yuan, 529400 million yuan, 597800 million yuan, 71 billion yuan, 764300 million yuan, and the net profit in the same period was -23.1 billion yuan, 50.69 million yuan, 18.6 billion yuan, 20.7 billion yuan, 1100 million yuan.
The company's operating income in the first three quarters of this year was 6930.7 billion yuan, a year-on-year increase of 3129%；Net profit attributable to the parent company was 12.9 billion yuan, a year-on-year increase of 470%。
In terms of profitability, under the influence of high inflation and other factors, the industry in which the company is located is facing an increase in the cost of product sales, superimposed product mix changes, and the impact of new business climbing, and the gross profit margin has also been squeezed, from 2018 to 2022 and in the first three quarters of this year, respectively. 55% vs. 277%, which is at a low level.
At present, the sales of communication products are still the core basic market of Tianyin Holdings, accounting for more than 80% of revenue for a long time. However, the business has driven the company's revenue growth at the same time, but also limited the company's earnings growth, the gross profit margin of the business in the last five reporting periods was not higher than 5%, and fell to 2 in the first half of the year3%。
In addition to the pressure on profitability, Tianyin Holdings has also been embroiled in a lawsuit this year. The second-largest shareholder, Tianfujin, received a court summons in May this year because of a loan that was not repaid. In the first-instance judgment, Tianfujin repaid the principal and interest of the loan of Zhongyuan Trust for a total of 164.7 billion yuan, Chairman Huang Shaowen bears joint and several liabilities.
Subsequently, in August this year, Tianyin Holdings disclosed the fixed increase plan, and the company plans to raise no more than 2.5 billion yuan for seven major projects such as marketing network construction at home and abroad, digital platform construction, lottery research and development and industrialization.
The company pointed out in the private placement announcement that in extreme cases, Huang Shaowen has the risk of affecting his qualifications due to the inability to repay large debts, which may adversely affect the company's future operations.
The future remains uncertain
For Tianyin Holdings, whether it can grow steadily is more important, but relying on the main business alone seems to have little hope.
Canalys, an independent analyst of the technology market, expects shipments to still fall by 5% in 2023 after a sharp 12% decline in 2022.
This also means that as the terminal consumer electronics enter the era of stock competition, the road ahead of Tianyin Holdings is becoming more and more difficult, and under the influence of the diminishing effect of the industry scale, it is urgent to break through the low-dimensional vicious competition environment and enhance the industry's right to speak.
In recent years, Telling Holdings has continued to expand its business boundaries and reduce its dependence on mobile phone sales, for example, the company has joined Huawei's new energy vehicle sales system and continued to deploy offline physical store car sales business.
It is worth noting that in 2018, Tianyin Holdings acquired Shanghai Nengliang E-commerce, a mobile phone online retailer in Tmall TOP3, which is becoming the second growth curve of Tianyin Holdings.
At present, Tianyin Holdings' retail e-commerce business is the fastest growing among all business segments, accounting for more than 10% of revenue. The e-commerce business achieved sales revenue of 94 in the first half of 20238.7 billion yuan, a year-on-year increase of 77%.
Behind the strong performance of the new business is the low gross profit brought about by the lack of pricing power, and the market recognition is still insufficient. With the peak of online dividends and the increase in customer unit value, the gross profit margin of retail e-commerce fell by 179 percentage points to 359%。
Based on the above, Tianyin Holdings is still in its infancy in various fields, and there is still a long way to go to achieve large-scale gains, and it is still facing uncertainty.
There are different opinions in the market about the transformation strategy of Tianyin Holdings, and there is a view that the company is involved in too many fields and may face greater uncertainty. If the growth rate of the industry slows down and the market competition intensifies, the company's gross profit margin may continue to decline, facing the risk of increasing revenue but not increasing profits.
There are also research institutions that are optimistic about the company's development strategy. According to the latest research report of Oriental Fortune**, the company actively carries out diversified strategic expansion, cooperates with Huawei in the sales of new energy vehicles, acquires Wiko mobile phones to the upstream brand layout, and seizes opportunities in the e-commerce field to open up growth space. It is estimated that the company's revenue from 2023 to 2025 will be 96938/1106.35/1295.2.7 billion yuan, and the net profit attributable to the parent company was 307/5.76/8.0.9 billion yuan. (Produced by Thinking Finance).