\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 588 Yonyou Network Technology Co.Ltd(600588) )
Key investment points:
Event: the company announced its performance in 2021, with an annual operating revenue of 8.932 billion yuan, a year-on-year increase of 4.7%; The net profit attributable to the parent company and the net profit attributable to the parent company after deduction were 708 million yuan and 405 million yuan respectively, with a year-on-year decrease of 28.2% and 55.3% respectively.
Comments:
The focus cloud transformation strategy further increased the proportion of revenue. The company’s annual revenue was 8.932 billion yuan, a year-on-year increase of 4.7%, and the revenue of its main business cloud + software business was 8.641 billion yuan, a year-on-year increase of 15.7%. Among them, the cloud business revenue reached 5.321 billion yuan, with a year-on-year increase of 55.5%, and continued to maintain rapid growth, accounting for 61.6% of the cloud + software business revenue, with a year-on-year increase of 15.8 percentage points. The ARR of cloud business reached 1.65 billion yuan, and the contract liabilities related to cloud subscription were 847 million yuan, with a significant year-on-year increase of 79.0%. In terms of customers, the annual cloud service revenue of large enterprises / medium-sized enterprises / small and micro enterprises / governments and other public organizations was 37.35/3.93/5.09/684 million yuan respectively, with a year-on-year increase of 45.4% / 150.3% / 111.2% / 50.0% respectively. Among them, the annual revenue growth of medium-sized enterprises was further higher than that of Q3, and the revenue growth of large enterprises was slower than that of Q3. The main reason is that the rapid growth of large project orders in the second half of last year led to the lengthening of the implementation and delivery cycle. In terms of software business, the company focused on the cloud service strategy and actively contracted the software business. The annual software business revenue was 3.320 billion yuan, a year-on-year decrease of 17.9%.
Short term investment increased, and the profit side was under pressure. The company’s net profit attributable to the parent company in 2021 was 708 million yuan, a year-on-year decrease of 28.2%, and the net profit attributable to the parent company after deducting non profits was 405 million yuan, a year-on-year decrease of 55.3%. The profit side of the company decreased significantly, mainly because the company strategically increased R & D and sales Investment focusing on “strengthening products, occupying the market and improving capacity” during the reporting period. Among them, the company continued to increase R & D investment, added 1446 R & D personnel throughout the year, and the R & D expenses increased by 16.2% year-on-year to 1.704 billion yuan; The company continued to upgrade its sales organization system, increased customer coverage and business promotion, added 611 new sales personnel throughout the year, and the sales expenses increased significantly by 31.7% year-on-year to 2.028 billion yuan. In terms of cash flow, the net operating cash flow of the company in 2021 was 1.304 billion yuan, a year-on-year decrease of 19.2%, mainly due to the increase in cash paid to and for employees.
Fully benefit from the opportunities of digital transformation, and increase strategic investment is expected to seize the opportunity. At present, the enterprise service industry has ushered in good market opportunities of digital intelligence, localization and globalization. At the same time, with the support of national policies for the digital economy, the process of enterprise digitization is expected to accelerate, and the company, as the leader of China’s cloud service and software industry, is expected to fully benefit. At the same time, in recent years, the company has further improved its product competitiveness by continuously increasing R & D investment, which is expected to further expand its market leading position in the wave of digitization.
Investment advice: maintain the recommended rating. It is estimated that the company’s EPS will be 0.27-0.34 yuan from 2022 to 2023, and the corresponding PE will be 96 and 76 times respectively.
Risk warning: the technical promotion is not as expected; Demand release is less than expected; Intensified industry competition, etc.
