\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 588 Yonyou Network Technology Co.Ltd(600588) )
Event: UFIDA released its 2021 annual report and achieved an operating revenue of 8.932 billion yuan, a year-on-year increase of 4.73%; The net profit attributable to the parent company after deduction was 708 million yuan, a year-on-year decrease of 28.18%, in line with our expectations.
The decline in revenue growth was mainly affected by business transformation and the improvement of customer structure. In 2021, the revenue of Yonyou Network Technology Co.Ltd(600588) cloud + software reached RMB 8.641 billion, with a year-on-year increase of 15.7%, of which the revenue of cloud business reached RMB 5.32 billion, with a year-on-year increase of 55.5%, accounting for 61.6% of the revenue of cloud + software, and the revenue of software business decreased by 18.0% year-on-year. Cloud service business has become the main revenue source of Yonyou Network Technology Co.Ltd(600588) revenue. At the same time of business transformation and structural upgrading, the growth rate of cloud + software is affected by the following factors: (1) the charging mode of license sub subscription affects the growth rate of revenue in the short term; (2) Partner delivery such as subcontracting affects the recognition of current revenue; (3) In the second half of 2021, large project orders lengthened the implementation and delivery cycle, resulting in the phased delay of revenue recognition. Subsequently, the company will continue to optimize the subcontracting and outsourcing capabilities through platform to solve the implementation and delivery problems.
The transformation to subscription mode has achieved remarkable results: in the large enterprise market, the company’s core product yonbip has achieved a breakthrough in the public cloud subscription business in the fields of fee control, taxation, human recruitment, collaboration and so on; In the medium-sized enterprise market, yonsuite has achieved large-scale development of public cloud subscription business in the growth enterprise market, and achieved an order of magnitude breakthrough in customer scale. Yonsuite added nearly 3000 customers in the whole year; In the small and micro enterprise market, changjietong continued to maintain the market leadership, and the proportion of cloud service business revenue increased from 47% of the previous year to 86%, successfully realizing the transformation to cloud service business. In 2021, the company’s public cloud subscribed to arr16 500 million yuan is a highlight of the company’s transformation. The contract liabilities related to cloud services amounted to RMB 1.58 billion, with a year-on-year increase of 45%, of which the cloud subscription contract liabilities increased by 79%, which laid the foundation for the continuous and rapid growth of the company’s subscription revenue and the continuous upgrading of the company’s business revenue structure.
Continue to maintain the advantage of large-scale customers, and the localization process is irresistible: in 2021, the company will provide more public cloud application services for large-scale customers, breaking through a series of central state-owned enterprises and private head enterprises, including 11 first-class central enterprises, such as China Nuclear Power Group, state investment group, Aerospace Hi-Tech Holding Group Co.Ltd(000901) group, China Mobile, China Post and Huawei, with a large order amount of more than 5 million yuan, a year-on-year increase of 45% and some customers signing contracts of more than 100 million yuan, Further expand the leading edge of the company’s key customers.
High R & D investment and obvious advantages in ecological construction. In 2021, the company invested 2.354 billion yuan in R & D, with a year-on-year increase of 40.7%, accounting for 26.4% of its revenue, an increase of 6.8 PCT over the same period last year. In 2021, there were more than 1700 EcoJET partners, including more than 971 EcoJET companies, and more than 1700 EcoJET partners in the industry, including more than 1700 EcoJET products, which continued to integrate into the ISV market, Strong ecological construction will help the company better occupy the market.
Profit forecast and investment rating: we lowered the revenue forecast from 2022 to 2023 to 10.8 billion yuan / 13.3 billion yuan, and the revenue is expected to be 16.1 billion yuan in 2024. The current market value corresponds to 8 / 7 / 5 times of PS from 2021 to 2023 respectively. With the advancement of software localization, relying on the advantages of key customers, the company’s revenue scale and quality will gradually continue to be reflected in the subsequent time dimension in the future. We are optimistic about the development and performance of yonbip platform carrying UFIDA’s “platform” + “ecological” strategy, and maintain the “buy” rating.
Risk warning: the competition of enterprise service industry intensifies; Covid-19 epidemic brought about the overall economic downturn.
