\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 588 Yonyou Network Technology Co.Ltd(600588) )
The growth rate of cloud + software revenue is in line with expectations, and SaaS leader leads the digital intelligence transformation of Chinese enterprises. In 2021, the company stripped off financial service businesses such as “changjietong payment” and “Youjin holding”, actively contracted the software business, accelerated the transformation strategy to cloud services, structurally enhanced the subscription business, and gradually promoted the implementation of delivery and subcontracting outsourcing. The annual operating revenue was 8.932 billion yuan, an increase of 4.7% year-on-year, of which the revenue of cloud services and software business was 5.321 billion yuan and 3.320 billion yuan respectively, an increase of 55.5% and a decrease of 18.0% year-on-year, Cloud business accounted for 61.6% of cloud plus software business revenue, an increase of 15.8% over the same period of 20 years. It has become the company’s main source of revenue. Considering the delayed delivery base of 20q4 epidemic, the revenue of 21q4 in a single quarter was 3.999 billion yuan, a year-on-year increase of 2.30%.
Cloud service contract liabilities and subscription related contract liabilities increased, and the quality of revenue continued to improve. The company ranks first in China’s enterprise cloud service market share. In the 21st year, the ARR of the company’s cloud business was 1.65 billion yuan, an increase of 470 million yuan compared with the third quarterly report, an increase of 39.83%, and the liabilities of cloud service contracts were 1.58 billion yuan, a year-on-year increase of 45.4%. Among them, the subscription related contract liabilities were 847 million yuan, with a year-on-year increase of 79%. The high growth of the company’s arr, cloud service contract liabilities and subscription related contract liabilities provided a solid guarantee for the company’s focus on cloud business and high-quality growth. At the same time, the company has gradually promoted the implementation of strategies such as delivery, subcontracting and outsourcing, focused on subscription, platform and product-based revenue, and continuously improved the quality of cloud business revenue. The renewal rate of cloud service customers was further improved. The cloud business revenue of large, medium-sized, small and micro enterprises, government affairs and other public organizations was RMB 3.735 billion, RMB 393 million, RMB 509 million and RMB 684 million respectively, with a year-on-year increase of 45.4%, 150.3%, 111.2% and 50.0% respectively. The renewal rates of large, medium-sized, small and micro enterprises were 103%, 73% and 83% respectively, which continued to improve.
High R & D investment, casting product advantages and sales investment closely follow industrial opportunities. The company promoted the strong product strategy and enhanced the platform capability and core application capability of cloud service products. In the whole year of 21, the R & D investment was 2.354 billion yuan, with a year-on-year increase of 40.7%, accounting for 26.4% of the revenue, an increase of 6.8% over the same period; Close to the industrial opportunities, we increased the coverage and business promotion of potential customers, and the sales cost was 2.028 billion yuan, a year-on-year increase of 31.7%. Key customers are still the advantages of UFIDA. Order verification has strong product competitiveness. UFIDA has won many tens of millions of large orders in the field of large central enterprises and commercial banks in the past 21 years, some of which are more than 100 million. Typically, UFIDA signed more than 40 million orders with SDIC group and digital transformation cooperation with Aerospace Hi-Tech Holding Group Co.Ltd(000901) group shensoft company, as the first to win the bid for Chongqing China Tobacco digital construction project. In the field of commercial banks, Postal Savings Bank Of China Co.Ltd(601658) HR projects and China Everbright Bank Company Limited Co.Ltd(601818) HR projects have been implemented one after another. It is expected that the steady growth of “cloud + software” in the future will further verify the competitiveness of UFIDA products and services with the orderly competition between overseas competitors sap, Oracle and Chinese friends.
Ecological strategy improves the competitiveness of industrial solutions, and the revenue of large customers is expected to continue to increase, so as to ensure the company’s future revenue and profitability. In 2021, the amount of large orders of more than 5 million yuan increased by 45% year-on-year, and some customers signed contracts of more than 100 million yuan. With the transformation of downstream enterprises from improving management efficiency to commercial innovation demand, UFIDA launched yonbip, a cloud service platform product, and accelerated the integrated development of BiP ecology through the integrated operation of “SaaS + PAAS + ISV cloud ecology”. At present, the platform has been developed for three generations, covering 10 major fields and building more than 2300 enterprise service application models; Realize the integration of data center and intelligence, and provide more than 50 intelligent models and more than 1000 analysis application scenarios; The company’s self-developed multi-dimensional data engine based on memory computing core realizes 100% independent, safe and controllable, and supports real-time consolidation of multi criteria, multi currency and main schedules under the scale of 100 billion data. According to the disclosed customer unit price of benchmark projects of large enterprises, we estimate that 96 central enterprises, tobacco, finance and local super large enterprises will contribute nearly 100 billion to the market in ERP related fields in the future, which effectively ensures the revenue growth space and profitability of UFIDA in the future.
Investment suggestion: it is predicted that the company’s revenue in 2022, 23 and 24 will be RMB 11.272 billion, RMB 13.955 billion and RMB 17.053 billion respectively. Considering the continuous expansion of the track space where the company is located, the relative improvement of the pattern with its main competitors, the stable customer base, gradually promote the implementation of delivery and subcontracting outsourcing, give priority to the subscription of small and medium-sized enterprises, continuously improve the revenue quality of cloud business and maintain the “buy” rating.
Risk tips: macroeconomic downside risk, cloud business transformation does not meet expectations, and market competition intensifies
