\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 588 Yonyou Network Technology Co.Ltd(600588) )
Recent situation of the company
On the evening of March 18, the company released its annual report for 21 years, realizing a revenue of 8.932 billion yuan, Y / y4.5% 7%； The net profit attributable to the parent company is 708 million yuan, Y / y-28.2%; Deduct non net profit of 405 million yuan, Y / y-55.3%. It was lower than the market expectation and higher than our Q3 expectation, because the company’s Q4 major projects were delivered smoothly and the cost rate was properly controlled.
Event comments
Focusing on cloud and software business, the revenue achieved a structural breakthrough. During the reporting period, the company stripped off financial service businesses such as changjietong payment and Youjin holdings, actively contracted software business, accelerated cloud transformation, structurally enhanced subscription business, and gradually promoted the implementation of delivery and subcontracting outsourcing. Cloud + software revenue is 8.64 billion yuan, Y / y15.5 billion yuan 7%； Among them, the cloud service revenue is 5.321 billion yuan, Y / y55.5 billion yuan 5%, accounting for 61.5% of the total revenue of cloud services and software; Subscribe to arr16 500 million yuan, an increase of 39.8% over the third quarterly report, and the liabilities of subscription related contracts were 847 million yuan, Y / y79.9% 0%, supporting the high growth of subscription revenue in the future. Continue to increase R & D investment, with R & D investment of 2.354 billion yuan, Y / y40.5 billion yuan 7%, accounting for 26.4% of revenue, up 6.8pp.
Give priority to the development of public cloud subscription business, and the layered operation has achieved remarkable results. Guided by the breakthrough of high-quality business income structure, the company fully implements the priority of subscription. The cloud revenue of large enterprise market is 3.735 billion yuan, Y / y45.5 billion yuan 4%, the renewal rate is 103%, and the core product yonbip realizes the breakthrough development of public cloud subscription business; Lightweight upgrade nccloud, overall contract with more than 10 first-class units of central enterprises, and break through benchmark customers in vertical industries such as finance, telecommunications, radio and television, tobacco, automobile and so on. The cloud revenue of medium-sized enterprises is 393 million yuan, Y / y150 million yuan 3%, the renewal rate is 73%, and yonsuite has nearly 3000 new customers; The cloud revenue of small and micro enterprises was 509 million yuan, Y / y111.5 million yuan 2%, representative product changjietong; The cloud revenue of government and other public organizations is 684 million yuan, Y / Y50 0%。 193200 cloud service paying customers were added during the reporting period.
The business innovation platform (BIP) gathers strategic partners and is expected to grasp the opportunities of information innovation and digital industry. BiP applies new ICT technologies such as mobile Internet, cloud computing and big data to enable enterprises to make digital intelligent transformation, gather IAAs and ISV partners and build an ecosystem, with more than 2200 partners. The state owned assets supervision and Administration Commission of the State Council established the science and technology innovation bureau to accelerate the promotion of the information and innovation industry. The state owned assets supervision and Administration Commission issued guidance. Most central enterprises have built a world-class financial management system. We are optimistic about the company’s customer accumulation and cloud transformation prospects in large central enterprises, and predict that the cloud business transformation will accelerate, with a compound growth rate of 50% of cloud business revenue in the next three years.
Profit adjustment and investment suggestions
The improvement of the company’s expense rate in 21 years exceeded our Q3 expectation, so the forecast of future expense rate was lowered. It is estimated that the revenue in 22-24 years is 106.91/130.86/15.881 billion yuan, and the net profit attributable to the parent company is 6.58 (256.7%) / 8.27 (222.8%) / 908 million yuan. The corresponding PE is 128 / 96 / 82 times, maintaining the “buy” rating.
Risk tips
The cloud of enterprises is less than expected; Intensified market competition; The localization process of high-end ERP market is lower than expected.
