\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 588 Yonyou Network Technology Co.Ltd(600588) )
Event: Yonyou Network Technology Co.Ltd(600588) ( Yonyou Network Technology Co.Ltd(600588) ) the annual report was disclosed on the evening of March 18. The company achieved an operating revenue of 8.932 billion yuan in 2021, with a year-on-year increase of 4.70%; The net profit attributable to the parent company was 708 million yuan, a year-on-year decrease of 28.2%.
The effect of cloud transformation is outstanding, and the growth of large orders is strong In Yonyou Network Technology Co.Ltd(600588) 21, the cloud business realized 5.321 billion yuan, accounting for 59.57% of the total revenue. Software business revenue reached 3.32 billion yuan, a year-on-year increase of – 18%. The net profit attributable to the parent company in 21 years was 708 million yuan, which was mainly due to the income side adjustment brought by the company’s strategic improvement of business structure and the increase of investment in technology and sales. The cloud business is growing rapidly, among which the cloud subscription contract liabilities are outstanding. Cloud service business revenue was + 55.5% year-on-year, accounting for 61.6% of cloud service and software business revenue, which was + 15.8pct year-on-year, and has become the company’s main source of revenue. The company’s cloud service business arr reached 1.65 billion yuan, and the contract liabilities related to cloud subscription increased by 79.0% year-on-year, laying a foundation for the sustained and rapid growth of the company’s subscription revenue and the continuous upgrading of the company’s business revenue structure. Cloud services in large, medium, small, government and public utilities markets increased by + 45.4%, 150.3%, 111.2% and + 50% respectively year-on-year.
We will continue to strengthen products, occupy the market and improve capacity. In 21 years, the company invested 2.354 billion yuan in R & D, a year-on-year increase of 26.4%, and the R & D cost in 21 years reached 1.704 billion yuan, a year-on-year increase of 16.2%. The company continues to increase R & D investment, continue to adhere to the principle of unified technology platform development, and enhance the platform, core applications and ecological integration capabilities of cloud service products. The company continued to upgrade the sales organization system, increased customer coverage and business promotion, and the sales cost was 2.028 billion yuan, a year-on-year increase of + 31.7%. Significantly increase the scale of yonbip R & D personnel. By the end of the reporting period, there were 7693 R & D personnel, an increase of 1446 over the beginning of 2021, accounting for 36.6% of the total number of employees, becoming the personnel with the highest proportion; Continue to upgrade the sales organization system and improve the sales ability. The number of sales personnel increased by 611, and the number of sales personnel increased to 3325.
Investment suggestion: we expect the company’s revenue in 22-24 years to be RMB 11.255 billion, RMB 13.882 billion and RMB 16.689 billion respectively. We are optimistic about the development opportunities of the company under the background of domestic digitization and maintain the buy rating.
Risk warning: the R & D and promotion of new products are not as expected; The customers of cloud products are less than expected; Customer budget changes.
