\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 588 Yonyou Network Technology Co.Ltd(600588) )
Core view
The transformation of income structure has been continuously promoted, and income growth has made steady progress. The company’s annual revenue was 8.93 billion yuan (+ 4.7%), the net profit attributable to the parent was 710 million yuan (- 28.2%), and the non attributable to the parent was 410 million yuan (- 55.3%). The non recurring profit and loss was mainly the investment income recognized by selling the equity paid by changjietong. Among them, in the fourth quarter, the revenue was 4 billion yuan (+ 2.3%), the net profit attributable to the parent was 580 million yuan (- 42%), and the non attributable to the parent was 580 million yuan (- 39.3%). The company’s revenue structure continued to improve: 1) the financial business with low gross profit margin has been stripped off, and the overall gross profit margin increased by 3.7 percentage points month on month compared with the third quarter; 2) The total revenue of cloud + software increased by 15.7%, including the rapid growth of cloud services, with a year-on-year increase of 55.5% to 5.32 billion yuan, and the revenue of software business reached 3.32 billion yuan (- 18%). Due to the rapid growth of large orders of cloud business in the second half of the year (more than 5 million orders increased by 53% year-on-year), the delivery rhythm has been delayed. At the same time, the company has gradually promoted the implementation of delivery, relocation and outsourcing in the direction of production, so the actual business progress is better than the appearance.
Continuous investment in R & D and continuous improvement of cloud indicators. The company invested 2.35 billion yuan (+ 40.7%) in R & D throughout the year, accounting for 26.4% of revenue (a year-on-year increase of 6.8 percentage points), and the capitalization rate was 35.9%. On the personnel side, the company has increased 1446 people in 21 years, focusing on yonbip R & D and 611 high-end sales. On the product side, yonbip has covered 10 fields and built more than 2300 application models. Yonsuite has launched more than 20 industry solutions according to the two-week iterative speed, and launched u9c to seize the market of medium and large manufacturing enterprises. The quality of cloud business indicators has also been gradually improved: 1) cloud contract liabilities were 1.58 billion yuan, including 850 million yuan related to cloud subscription, a year-on-year increase of 79%; 2) The ARR index reached 1.65 billion, an increase of about 40% over the third quarterly report; 3) The growth rate of cloud revenue of large / medium / small / government is 45% / 150% / 111% / 50% respectively, and the renewal rate of large / medium / small enterprise customers is 103% / 73% / 83% respectively. Pay close attention to the head customers and occupy the market effectively. The company seized the opportunity in the large-scale enterprise market and achieved more than 10 overall contracts in the first level units of central enterprises, focusing on breakthroughs in central enterprises / private head enterprises such as China Nuclear Power Group, state investment group, Aerospace Hi-Tech Holding Group Co.Ltd(000901) group, China Mobile, China Post, Huawei, Byd Company Limited(002594) and the total revenue of cloud and software reached 5.87 billion yuan (+ 17%). At the same time, the company used the product portfolio of yonsuite, u9c and u8c to grab “specialized and special new” customers in the mid-range customer market, and used changjietong to achieve 111% growth in cloud service revenue in the small and micro market. Overall, the company’s market occupation has been fruitful, with 193000 new cloud service paying customers in the whole year and 438000 cloud paying customers in total (excluding finance). Risk tip: the company’s cloud business is lower than expected; Loss of downstream customers.
Investment advice: maintain the “buy” rating.
It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 936 / 1219 / 1557 million yuan, with a year-on-year growth rate of 32.2 / 30.3 / 27.7%; Diluted EPS = 0.27/0.35/0.45 yuan, and the current share price corresponds to PE = 93.4/71.7/56.2x. As a leading enterprise in cloud computing in China, the company has broad growth space in the future and maintains a “buy” rating
