\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 588 Yonyou Network Technology Co.Ltd(600588) )
Key investment points]
The company released its 2021 annual report. In 2021, it achieved a revenue of 8.932 billion yuan, an increase of 4.7% year-on-year compared with that in 2020. In the whole year, the net profit attributable to the parent company was 708 million yuan, a year-on-year decrease of 28.2%, and the deduction of non net profit was 405 million yuan, a year-on-year decrease of 55.3%; Net operating cash flow was 1.304 billion yuan, a year-on-year decrease of 19.2%. 21q4 achieved a revenue of 3.999 billion yuan in a single quarter, a month on month increase of + 127.77% and a year-on-year increase of + 2.30%; In Q4, the net profit attributable to the parent company and the net profit deducted from non net profit in a single quarter were 581 million yuan and 583 million yuan respectively.
We have firmly promoted business transformation, and the cloud business has developed significantly. In 2021, the company stripped off its financial services business, contracted the software industry and focused on the transformation of cloud services. The revenue from cloud service and software business was 8.641 billion yuan, a year-on-year increase of 15.7%, of which the revenue from cloud service business was 5.321 billion yuan, a year-on-year increase of 55.5%, and the revenue from software business was 3.320 billion yuan, a year-on-year decrease of 18%. The subscription arr of cloud service business is 1.65 billion yuan. In terms of contract liability indicators, the company’s contract liability balance at the end of 2021 was RMB 2.156 billion (+ 3.0%), including software related contract liabilities of RMB 575 million (- 42.8%), cloud service related contract liabilities of RMB 1.580 billion (+ 45.4%), and cloud subscription related contract liabilities of RMB 847 million (+ 79.0%). The number of cloud paying customers reached 340000, and the number of cloud paying customers was good. Factors such as the change of revenue recognition mode of subscription business, the change of delivery implementation mode and the extension of implementation delivery cycle affect the phased performance.
The cloud transformation of large enterprises was carried out smoothly, and the cloud transformation of small, medium-sized and micro enterprises and government increased significantly. In 2021, from the perspective of customer structure, the revenue from cloud service and software business of large enterprise customers was 5.87 billion yuan (+ 17.0%), of which the revenue from cloud service business was 3.735 billion yuan (+ 45.4%), the cloud transformation of large enterprises was carried out smoothly, the signing of benchmark customers such as Aerospace Hi-Tech Holding Group Co.Ltd(000901) , national development and investment group, and the amount of large orders of more than 5 million yuan increased by 45% year-on-year; Through the joint efforts of yonsuite, u8c, u9c and other products, the scale of customers of medium-sized enterprises is promoted. The revenue of cloud service and software business of medium-sized enterprises is 907 million yuan (+ 13.0%), of which the revenue of cloud service business is 393 million yuan (+ 150.3%); The cloud service and software business revenue of small and micro enterprises was 596 million yuan (+ 15.7%), of which the cloud service business revenue was 510 million yuan (+ 111.2%); The revenue from cloud service and software business of the government and other public organizations was 1.268 billion yuan (+ 11.6%), and the revenue from cloud service business was 684 million yuan (+ 50.0%).
Maintain investment on the expense side and build a leading position in sales + R & D. The company invested 2.35 billion yuan in R & D in the past 21 years, with a year-on-year increase of 40.7%, accounting for 26.4% (+ 6.8pct) of revenue. The R & D cost was 1.704 billion yuan, with a year-on-year increase of + 16.2%, and the sales cost was 2.027 billion yuan, with a year-on-year increase of + 31.7%. During the reporting period, the R & D personnel increased by 1446 and the sales personnel increased by 611. The company continued to expand its R & D and sales ability, and built a leading position in the industry through R & D and sales.
[investment suggestions]
The company has deeply cultivated the enterprise software and enterprise service market for many years, grasped the opportunities of digital intelligence and localization, actively expanded the market, promoted the cloud transformation smoothly, and the cloud engine helped the company enter a new stage of development. Due to the adjustment of revenue recognition mode and the change of delivery rhythm caused by the optimization of business structure, the profit forecast of the company from 2022 to 2023 is lowered, and the profit forecast of the company in 2024 is introduced. It is estimated that from 2022 to 2024, the operating revenue of the company will be RMB 11.026134.48/15.751 billion respectively, the net profit attributable to the parent company will be RMB 86411991451 million respectively, the EPS will be RMB 0.25/0.35/0.42 respectively, and the corresponding PE will be 101 / 73 / 60 times respectively, maintaining the “overweight” rating.
[risk tips]
Risk of continuous slowdown in delivery rhythm;
Risk that the customer’s progress is less than expected;
Risk of poor collection of orders.
