\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 588 Yonyou Network Technology Co.Ltd(600588) )
Major events
The company released its annual report for 2021, and achieved a revenue of 8.932 billion yuan, a year-on-year increase of 4.73%; The net profit attributable to the parent company was 708 million yuan, a year-on-year decrease of 28.18%; The net profit attributable to the parent company after deduction was 405 million yuan, a year-on-year decrease of 55.30%. In 2021q4, the revenue was 3.999 billion yuan, a year-on-year increase of 2.30%, and the net profit attributable to the parent company was 581 million yuan, a year-on-year decrease of 41.98%.
Key investment points
The marginal growth rate of cloud + software revenue has improved. Excluding the impact of subscription transformation, the growth will be higher. In 2021, the company firmly promoted business transformation and structural adjustment, and successively stripped off the financial service business, changjietong payment and Youjin holding. The company’s cloud service and software business realized a revenue of 8.641 billion yuan, a year-on-year increase of 15.68%, and the growth margin improved (2020 growth rate: 4.25%), of which the cloud service business revenue was 5.321 billion yuan, a year-on-year increase of 55.47%, accounting for 59.57% of the total revenue (2020: 40.15%). The company structurally enhanced the subscription business and realized the cloud service business arr16 5 billion yuan, cloud contract liabilities 1.58 billion yuan, an increase of 45.39%, of which cloud subscription related contract liabilities 847 million yuan, an increase of 79%. In terms of cash flow, the company received 8.791 billion yuan in cash from selling goods and providing labor services, with a year-on-year increase of 2.2%. Excluding financial business, the cash received from selling goods and providing labor services increased by 14.0% year-on-year. At the same time of business transformation and structural upgrading, the revenue of the company’s cloud service and software business is affected by many factors, such as the shift from traditional licensing business to subscription business, more implementation and delivery services provided by professional partners, and the rapid growth of orders for large projects with longer delivery cycle. After excluding the above effects, the actual operating results of the company will be more impressive.
The layered and targeted business strategies have achieved remarkable results, and the market leading position of large enterprises has been further expanded
In 2021, the company continued to carry out hierarchical and targeted operation. In large, medium-sized, small and micro enterprises, government and other enterprise markets, the revenue of cloud service + software business was 5.87 billion yuan, 910 million yuan, 600 million yuan and 1.27 billion yuan respectively, with a year-on-year increase of + 17.0%, + 13.0%, + 15.7% and + 11.6%, of which the revenue of cloud service was 3.73 billion yuan, 3.9 billion yuan, 510 million yuan and 680 million yuan respectively, with a year-on-year increase of + 45.4%, + 150.3%, + 111.2% and + 50.0%. The company achieved a year-on-year increase of 45% in the amount of large orders of more than 5 million, made an overall breakthrough in signing contracts with more than 10 primary units of central enterprises, and further expanded the market leading position of large enterprises.
Yonbip, NC cloud and other products continued to strengthen, and the number of cloud service paying customers increased
In 2021, the company continued to increase R & D investment, enhance the platform capability and core application capability of cloud service products, and continuously optimize product performance. The R & D investment was 2.354 billion yuan, a year-on-year increase of 40.7%, and the revenue of R & D investment accounted for 26.4%, a year-on-year increase of 6.8 percentage points. Under the strong product strategy, yonbip’s cloud platform capability has been further enhanced and has a complete architecture and service scale; NC cloud releases the standard version and cloud native version, and all lightweight upgrades have been completed; Yonsuite added new project cloud, asset cloud, PLM, multi-level distribution and other services and new scenario applications in various fields. The company continued to upgrade its sales organization system and increase its customer coverage and business promotion. The sales cost was 2.028 billion yuan, a year-on-year increase of 31.7%. There were 193200 new cloud service paying customers, and the cumulative number of cloud service paying customers excluding financial cloud service customers was 438300.
Profit forecast and valuation
In 2021, the marginal growth rate of cloud service and software revenue has improved significantly. Under the triple opportunities of digital intelligence, cloud and localization, the future growth can be expected. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 905 million yuan, 1173 million yuan and 1521 million yuan respectively; The corresponding EPS is 0.28, 0.36 and 0.47 yuan, maintaining the “buy” rating.
Risk tips
The macro-economy affects the downstream demand, the market competition intensifies, and the promotion of yonbip is less than expected.
