\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 588 Yonyou Network Technology Co.Ltd(600588) )
Event: on March 18, 2022, Yonyou Network Technology Co.Ltd(600588) released the annual report of 2021, and the company achieved an annual revenue of 8.932 billion yuan, a year-on-year increase of 4.7%; The net profit attributable to the parent company was 708 million yuan, a year-on-year decrease of 28.2%; Deduct non net profit of 405 million yuan, a year-on-year decrease of 55.3%.
Structural optimization achieved a breakthrough, and cloud business became the largest source of revenue for the first time. In 2021, the company firmly promoted business transformation and structural adjustment, and achieved a higher quality structural breakthrough in business revenue. The company has successively stripped off changjietong payment, Youjin holding and other financial service businesses, actively contracted the software business, accelerated the transformation strategy to cloud services, gradually promoted the implementation of delivery and subcontracting outsourcing, and focused on product and subscription revenue. In 2021, the company achieved an operating revenue of 8931.8 million yuan, with a year-on-year increase of 4.7%, including a year-on-year decrease of 72.5% in financial services, 18.0% in software and 55.5% in cloud services, accounting for 59.57% of the company’s total operating revenue. For the first time, the revenue of cloud service business exceeded that of software business, becoming the largest source of revenue of the company.
Give priority to the development of subscription business and lay the foundation for high-quality income structure in the future. For small and medium-sized customers, the company gives priority to the development of public cloud subscription business, provides more public cloud application services for large customers, guides private cloud customers to pay by subscription, and strengthens high-quality SPS business for software business. By virtue of the subscription business of yonguite, Changtong and other small and medium-sized enterprises, they have made breakthroughs in the market. In 2021, the company’s cloud service business arr reached 1.65 billion yuan, an increase of 39.8% month on month. The contract liabilities related to cloud subscription amounted to 847 million yuan, with a year-on-year increase of 79.0%, accounting for 34.90% of the company’s total contract liabilities, 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.
Large orders shine and seize the leading position in the service market of large enterprises. The company focused on breaking through the super large enterprises, achieved more than 10 overall signing breakthroughs in the first level units of central enterprises, and successfully promoted the business of digital intelligence solutions in vertical industries such as finance, telecommunications, radio and television, tobacco and automobile. It successfully signed Aerospace Hi-Tech Holding Group Co.Ltd(000901) , National Development and investment group, China Everbright Bank Company Limited Co.Ltd(601818) , postal savings bank of China, China Galaxy Securities Co.Ltd(601881) securities, Everbright Securities Company Limited(601788) , The People’S Insurance Company (Group) Of China Limited(601319) life insurance China Telecom Corporation Limited(601728) and a number of benchmark customers of large group enterprises. The company achieved more than 5 million large orders, with a year-on-year increase of 45%, and some customers signed more than 100 million contracts, further expanding the company’s leading position in the large enterprise service market.
Investment suggestion: considering the company’s shrinking software business and reducing the company’s performance forecast for 22-23 years, it is estimated that the company’s operating revenue in 20222024 will be 11.614 billion yuan, 14.531 billion yuan and 17.715 billion yuan respectively, the net profit attributable to the parent company will be 968 million yuan, 1.268 billion yuan and 1.612 billion yuan respectively, and the EPS will be 0.30, 0.39 and 0.49 yuan / share respectively. Maintain the “buy” rating.
Risk tip: the implementation of Enterprise Cloud policy is less than expected; Intensified market competition; The epidemic affects the economic downside risk.
