\u3000\u3000 Yonyou Network Technology Co.Ltd(600588) (600588)
Focus cloud transformation strategy, continue to increase investment and maintain the “buy” rating
Considering the continuous increase of the company’s R & D and market investment, we maintain that the company’s net profit attributable to the parent company from 2021 to 2023 is predicted to be RMB 898, 1101 and 1303 million, EPS is RMB 0.27, 0.34 and 0.40/share, and the current share price corresponds to PE of 138.0, 112.7 and 95.1 times. The company is facing the historical opportunity of the superposition of three waves of intellectualization, localization and internationalization, and is expected to accelerate its development and maintain the “buy” rating.
The fixed increase was implemented, and it was subscribed by Hillhouse and other well-known institutions to demonstrate its strength
The company successfully issued additional shares at a fixed price of 31.95 yuan / share, issued 165.8352 million shares, and raised a total of 5.298 billion yuan. The issuing objects were finally determined to be 17, including well-known institutions at home and abroad, such as Gaoling (1 billion), Gaoyi (400 million), GIC (340 million), Wanjia Fund (300 million), e fund (250 million), which fully demonstrated the recognition of the company’s value.
Raise funds to help the company consolidate its core competitiveness
The company will raise 5.298 billion yuan, which is mainly invested in yonbip construction project of UFIDA business innovation platform (4.597 billion yuan), phase III R & D center construction project of UFIDA Industrial Park (Nanchang) (628 million yuan), replenishing working capital and repaying bank loans (73.4351 million yuan). The construction of yonbip will effectively support customers’ business innovation and help the company achieve its strategic goal of becoming a world leading enterprise cloud service provider in the future.
Digitization of state-owned enterprises is the general trend, and the development of the company meets important opportunities
On the one hand, China’s “14th five year plan” for the development of digital economy has been issued. The plan points out that by 2025, the digital economy will move towards a period of comprehensive expansion, and the added value of core industries of digital economy will account for 10% of GDP. On the other hand, the digital transformation of state-owned enterprises is imperative. In August 2020, the SASAC of the State Council issued the notice on accelerating the digital transformation of state-owned enterprises, clarifying the basis, direction, focus and measures of the digital transformation of state-owned enterprises. As a leading enterprise in China’s enterprise service market, the company is expected to become the backbone to promote the digital transformation of state-owned enterprises. In the first three quarters of 2021, the company has signed contracts with a number of central enterprises, state-owned enterprises and industry-leading benchmark customers such as national development and investment group, Aerospace Hi-Tech Holding Group Co.Ltd(000901) group, China Post and China Pingmei Shenma Group.
Risk warning: the impact of macroeconomic changes on customer procurement; Cloud business is not progressing as expected.
