\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 588 Yonyou Network Technology Co.Ltd(600588) )
Investment Event: the company released its 2021 annual report: the operating revenue was 8931.8 million yuan, a year-on-year increase of 4.7%; The net profit attributable to the parent company was 707.76 million yuan, a year-on-year decrease of 28.2%; Net profit deducted from non parent company was 405.1 million yuan, a year-on-year decrease of 55.3%.
The proportion of cloud services has increased significantly and the revenue structure has been optimized. During the reporting period, due to the divestiture of changjietong payment and other financial services business, the revenue of financial services business decreased by 72.5% year-on-year, while the revenue of cloud services and software business reached 8.641 billion yuan, a year-on-year increase of 15.7%, driving the overall increase of the company’s revenue of 4.7%. Among the cloud service and software business revenue, the software business revenue was 3.320 billion yuan, a year-on-year decrease of 18%; The revenue of cloud service business reached 5.321 billion yuan, with a year-on-year increase of 55.5%, accounting for 61.6% of the revenue of cloud service and software business, with a year-on-year increase of 15.8 percentage points. During the reporting period, cloud service business has become the company’s main source of revenue, the company’s revenue structure has been optimized, and the implementation of the new strategy is in good condition.
The cloud transformation strategy has achieved remarkable results, and the business indicators have been significantly optimized. The company has actively promoted the cloud transformation strategy, launched a competitive cloud service matrix product system, and continuously improved its market recognition. From the operating data, the company’s cloud service business revenue in 2021 was 5.321 billion yuan, a year-on-year increase of 55.5%; Cloud service business arr16 500 million yuan; The contract liabilities related to cloud services reached 1.58 billion yuan, a year-on-year increase of 45.4%, of which the contract liabilities related to cloud subscriptions reached 847 million yuan, a year-on-year increase of 79.0%; Yonstore, a cloud market application mall, has more than 10000 settled partners, with more than 15000 settled products and 126 listed integrated products. The company’s cloud business has achieved rapid growth, and relevant operation indicators have been significantly optimized.
Increase R & D and sales investment to enhance the competitive advantage of enterprises. In order to further implement the key tasks of “strengthening products”, “occupying the market” and “improving capacity”, the company continues to increase investment in R & D and sales. In terms of R & D, the company introduced high-end talents, optimized product performance, and made a number of breakthroughs in cloud technology, cloud platform, self-developed engine and other fields; By the end of 2021, the company had 7693 R & D personnel, with a year-on-year increase of 1446, accounting for 36.6% of the total number of employees. At the same time, the company continues to upgrade the sales organization system, increase customer coverage and business promotion; By the end of 2021, the company had 3325 sales personnel, an increase of 611 over the same period of last year. During the reporting period, the company’s R & D expenses and sales expenses increased by 40.7% and 31.7% respectively year-on-year, much higher than the revenue growth rate of 4.7%. The company will further increase investment in R & D and sales, which is expected to enhance the competitive advantage of the enterprise and promote the long-term sustainable development of the enterprise.
Investment suggestion: due to the reasons such as industry information innovation and digital transformation of central state-owned enterprises, the proportion of large and super large enterprise customers of the company has increased, and the implementation cycle of large projects is long, which has a certain impact on revenue recognition. And the company will complete it in 2021
