\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 588 Yonyou Network Technology Co.Ltd(600588) )
Event overview
1) on March 12, 2022, the company issued the announcement on the plan of repurchasing the company’s shares by means of centralized bidding transaction, which plans to repurchase shares for employee incentive in the future. The total amount of share repurchase funds shall not be less than 600 million yuan, not more than 1 billion yuan, and the repurchase price shall not exceed 32.4 yuan / share.
2) on March 2, 2022, the official website of SASAC released the guidance on central enterprises to accelerate the construction of a world-class financial management system, It is pointed out that “through the efforts of about five years, the overall financial management level of central enterprises has significantly jumped to a new level. Through the efforts of about 10-15 years, the vast majority of central enterprises have built a world-class financial management system suitable for world-class enterprises” and “promote the transformation of financial management from information to digital and intelligent”, The financial management software of central enterprises has ushered in new growth momentum.
3) since 2022, the official account of WeChat public has revealed that the company has built China’s Three Gorges group’s “human resources and financial system upgrading” project, successfully signed the largest salt enterprise in Asia, China Salt Group and Hangzhou Hikvision Digital Technology Co.Ltd(002415) to build a Yonyou Network Technology Co.Ltd(600588) financial sharing platform project.
The wave of digital intellectualization of state-owned central enterprises has arrived, and UFIDA BiP has made positive layout
Under the policy catalysis, the demand for digital intelligence transformation of state-owned central enterprises is expected to accelerate. The guidance on accelerating the construction of a world-class financial management system by central enterprises issued by the SASAC on March 2 defines the construction objectives of central enterprises in terms of financial management system, with particular emphasis on “promoting the transformation of financial management from informatization to digitization and intelligence”. We believe that the financial management system is the beginning of the digital intelligence transformation of central enterprises, In the future, there will be a series of digital and intelligent transformation needs around the human, financial, material, production, supply and marketing of enterprises, which are expected to be opened one after another. In this process, domestic software is expected to benefit to a greater extent. UFIDA has launched project cooperation with a number of state-owned and central enterprises, and is expected to take the lead in benefiting from the digital intelligence transformation trend of state-owned and central enterprises. According to the disclosure of the company’s 2021 interim report and the third quarterly report, the company signed a number of typical customers of state-owned enterprises in 2021, including China Nuclear Power Group, CNOOC information, China chemical industry, China National Gold Group Gold Jewellery Co.Ltd(600916) , China Construction Fifth Bureau, national development and investment group, Aerospace Hi-Tech Holding Group Co.Ltd(000901) group, China Pingmei Shenma Group, etc. According to the official wechat disclosure of the company, since 2022, the company has successively cooperated with China Three Gorges group, China salt industry group and Hangzhou Hikvision Digital Technology Co.Ltd(002415) and the cooperation projects involve financial management system or financial sharing platform, reflecting the continuous improvement of the competitiveness of the company’s financial software in large enterprises. We believe that the company is expected to take the lead in benefiting from the digital intelligence transformation trend of state-owned enterprises.
UFIDA BiP digital intelligence solution is gradually improved to provide support for serving super large customers. 1) From the perspective of product dimension: according to the disclosure of the company’s third quarterly report in 2021, the company released UFIDA BiP digital intelligence solution. Based on the unified IUAP cloud platform, the company jointly constructs the digital intelligence product matrix of large enterprises with yonbip sensitive business innovation and NC cloud steady-state operation and management. In addition, the company continued to invest in yonbip, a business innovation platform of UFIDA, and launched yonbip’s flagship 202109 public cloud products, further consolidating the cloud platform and deepening cloud application services in the field; It has strengthened many new applications and features such as yonbuilder low code development platform, data middle platform (data workshop, enterprise portrait), intelligent middle platform (AI workshop, RPA Siasun Robot&Automation Co.Ltd(300024) ), blockchain services and so on. 2) From the perspective of Ecology: according to the company’s announcement, the company successively acquired dayiyun hrsaas software, acquired grapefruit mobile to improve the low code platform and put forward five ecological plans in 2021. It is expected to continue to build a strong partner ecology based on BiP strategic products, so as to truly transform from a product-based enterprise to a platform and ecological enterprise, and seize the wave of digital intelligence of state-owned and central enterprises, Create greater strategic value.
The smooth implementation of fixed growth has helped the continuous promotion of BiP products
On January 28, 2022, the company issued the announcement on the results of non-public Development Bank A-share issuance in 2020 and changes in share capital. The total amount of funds actually raised was 5.298 billion yuan and the issue price was 31.95 yuan / share. The placement objects of this issuance include many well-known investment institutions outside China. Foreign institutions include hhlr fund, JP Morgan, UBS, GIC (Singapore government investment company) under Hillhouse investment, and domestic institutions include Gaoyi assets, e fund, Wanjia fund, etc. In the investment direction of the fixed increase fund-raising, 4.597 billion yuan will be used for the construction project of yonbip, a business innovation platform of UFIDA. We believe that the smooth implementation of fixed growth and the availability of funds will contribute to the R & D iteration of the company’s BiP products, so as to strengthen the company’s competitiveness in the field of ERP software of super large enterprises and help the company grasp the current wave of digital intelligence transformation of state-owned enterprises.
Launch a large share repurchase plan to strengthen confidence in development
On March 12, 2022, the company issued the announcement on the plan of repurchasing the company’s shares by means of centralized bidding transaction, and the proposed repurchase amount is between 600 million and 1 billion. We believe that the company launched a large share repurchase plan at the current time, which reflects the company’s confidence in the future development prospects. At the same time, the repurchased shares will be used for future employee incentives, which will also bind the interests of the company’s core backbone members for a long time and boost the implementation of the company’s strategic objectives.
Investment advice
UFIDA, as a leading company in China’s enterprise level service market, is expected to benefit from the current digital intelligence transformation needs of state-owned enterprises and realize the goal of transformation to platform and ecological enterprises by relying on BiP strategic products. We expect the company to achieve an operating revenue of RMB 9.380/11.884/14.903 billion in 2021 / 22 / 23, with a year-on-year increase of 10.0% / 26.7% / 25.4%. The net profit attributable to the parent company was 926 / 1051 / 1499 million yuan, with a year-on-year increase of – 6.4% / 13.6% / 42.6%. Maintain the investment rating of buy-a. considering that the company is still in the investment period, PS is used for valuation, and the six-month target price is 34.59 yuan, which is equivalent to 10 times the dynamic market sales rate in 2022.
Risk tip: the epidemic spread outside China, the business activities of enterprises are limited, and the order demand is less than expected; The informatization investment of state-owned enterprises is less than expected; There is pressure on the delivery of large projects of the company.
