\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 588 Yonyou Network Technology Co.Ltd(600588) )
Event overview
The company recently released the first quarterly report of 2022. 22q1 achieved an operating revenue of 1.279 billion yuan, a year-on-year increase of 5.39%. Among them, the company's main cloud service and software business achieved a revenue of 1.270 billion yuan, a year-on-year increase of 20.1%. The net profit attributable to the parent company in 22q1 was -393 million yuan, an increase of 380 million yuan compared with the loss in 21q1. The company's 22q1 loss increased, mainly due to the disposal of Changjie payment by 21q1 company, which realized an investment income of 287 million yuan in 21q1, a year-on-year decrease of 262 million yuan in 22q1, and the 22q1 loss expanded under the high base. Overall, we believe that the company's 22q1 revenue side slightly exceeded expectations, and we maintained confidence in the company's business development throughout the year.
Large and medium-sized markets have made concerted efforts, 22q1 has performed well, and cloud business has accelerated development
From the perspective of revenue splitting, according to the disclosure of the company's first quarterly report, 22q1 company achieved software + cloud revenue of 1.270 billion yuan, a year-on-year increase of 20.1%, and the growth rate in 2021 was 15.7%, showing an accelerating trend. Among them, enterprise customers realized software + cloud revenue of 1.178 billion yuan, a year-on-year increase of 27.6%, and government and public organization customers realized software + cloud revenue of 92 million yuan, a year-on-year decrease of 31.8% affected by the epidemic and government expenditure. From the perspective of the splitting of enterprise customers, large enterprises realized software + cloud revenue of 814 million yuan, a year-on-year increase of 19.9%, and the growth rate in 2021 was 17.0%. Medium sized enterprises realized software + cloud revenue of 203 million yuan, a year-on-year increase of 42.2%, and the growth rate in 2021 was 13.0%. The company 22q1 has achieved good performance growth in the large and medium-sized enterprise market, which has laid a solid foundation for the accelerated development of the overall business.
From the perspective of product dimension, the company 22q1 released UFIDA BiP new business travel and fee control service products for large enterprises, helping large and medium-sized enterprises realize convenient business travel and intelligent fee control; Launch comprehensive construction project management and cloud service products in the pharmaceutical industry. In the large enterprise market, in addition to creating traditional steady-state ERP software for customers, the company has also developed more sensitive applications for external connection of enterprises, so as to truly realize the cloud transformation from products to business model. For medium-sized enterprises, the company launched a series of new services through iterative product upgrading of yonsuite. Based on the characteristics of yonsuite customers, the company has formed industrial solutions such as software and information technology services, daily chemical and professional technical services. According to the disclosure of the first quarterly report, the revenue, contract liabilities, signing and other indicators of yonsuite products of 22q1 company have doubled. In addition, the company's u9 cloud enterprise version, Standard Version, smart factory, mobile application and other products for growing manufacturing enterprises continue to develop and innovate, and the product functions are further expanded, which strongly supports the digital intelligence transformation of medium-sized and medium-sized manufacturing enterprises.
From the perspective of cloud business development, 1) cloud business revenue: according to the disclosure of the first quarterly report, 22q1 company realized cloud business revenue of 749 million yuan, a year-on-year increase of 45.1%. Among them, the cloud revenue of large enterprises was 472 million yuan, a year-on-year increase of 29.1%; The cloud revenue of medium-sized enterprises was 89 million yuan, a year-on-year increase of 165.6%; SaaS subscription revenue of small and micro enterprises was 85 million yuan, a year-on-year increase of 94.8%. 2) Cloud contract liabilities: according to the first quarterly report, the company realized cloud contract liabilities of RMB 1.715 billion in 22q1, an increase of 39.5% year-on-year in 21q1. Among them, the contract liabilities related to subscriptions reached 961 million yuan, an increase of 95.5% year-on-year in 21q1 and 13.4% over the end of 2021. 3) Renewal rate: according to the first quarterly report, the renewal rate of cloud services for large customers of 22q1 company is 108%, which is higher than 103% at the end of 2021; The renewal rate of medium-sized customers is 84%, which is 73% at the end of 2021; The renewal rate of small and micro enterprises was 73% and 83% at the end of 2021, which was mainly affected by the epidemic.
The tide of digital intelligence transformation of large enterprises has arrived, and the company is actively layout
Policy driven large enterprises represented by state-owned central enterprises to start digital intelligence transformation. On March 2, 2022, the official website of the SASAC issued the guidance on central enterprises to accelerate the construction of a world-class financial management system, proposing to "promote the transformation of financial management from informatization to digitization and intelligence". On March 16, the official website of the SASAC issued the announcement on the establishment of the science and technology innovation Bureau. We believe that the wave of digital intelligence transformation of large enterprises represented by state-owned enterprises has come, and the capital expenditure of large enterprises on digital intelligence transformation is expected to increase in the future. From the perspective of the expansion of the company's large customers, according to the first quarterly report, 22q1 successfully won the label of about a number of super large groups, and successfully promoted the business of digital intelligence solutions in vertical industries such as finance, tobacco, automobile, telecommunications and radio and television. In addition to the Three Gorges group and China Salt Group, it also signed contracts with China Shipbuilding and fuel group, China Gold Coin Corporation, Kirin software, China Agricultural Bank Of China Limited(601288) , China Life Insurance Company Limited(601628) endowment insurance, China Development Bank Bank Of China Limited(601988) , Gansu Tobacco, Guizhou tobacco, Anhui Zhongyan, Shaanxi hande axle, China United Network Communications Limited(600050) , China Star and other industry leaders and benchmark customers. We believe that the digital intelligence transformation and localization substitution of large enterprises have not only brought good development opportunities for the company, but also built a cornerstone for the company's performance growth.
As a leading company in China's enterprise level service market, UFIDA is expected to benefit from the digital intelligence of current state-owned enterprises
Transformation needs, relying on BiP strategic products to achieve the goal of transformation to platform and ecological enterprises. We expect the company to achieve an operating revenue of 10.78/13.75/17.95 billion yuan in 2022 / 23 / 24, with a year-on-year increase of 20.7% / 27.5% / 30.5%. The net profit attributable to the parent company was RMB 860 / 12.0 / 1.68 billion, with a year-on-year increase of 21.3% / 39.3% / 40.1%. Maintain the investment rating of buy-a. considering that the company is still in the investment period, PS is used for valuation, and the six-month target price is 25.10 yuan, which is equivalent to 8 times the dynamic market sales rate in 2022.
Risk warning: epidemic spread outside China; The investment in informatization is less than expected; Project delivery is under pressure.