\u3000\u3000 Yonyou Network Technology Co.Ltd(600588) (600588)
Core view
Event: the company issued the report on the issuance of A-Shares of non-public development banks in 2020. The issuing object was finally determined to be 17, the issuing price was 31.95 yuan / share, and the total amount of funds raised was 5.3 billion yuan.
It has been blessed by many well-known Chinese and foreign institutions. There are 17 issuing objects in total, and the total amount of funds raised is 5.3 billion yuan, including 1 billion yuan allocated to hhlr Management Co., Ltd. under hilling capital, 253 million yuan allocated to e-fund, and 400 million yuan allocated to two products under Gaoyi assets. The funds raised in this non-public offering will be invested in yonbip construction project of UFIDA business innovation platform, phase III R & D center construction project of UFIDA Industrial Park (Nanchang), supplement working capital and repay bank loans, of which 4.597 billion yuan will be used for yonbip construction project. This non-public offering conforms to the company’s development strategy, helps to optimize UFIDA’s core platform and application products, improves the company’s market competitiveness, and the ownership structure will be further optimized.
The reform of state-owned enterprises is accelerating, and the company is expected to benefit. 2022 is the last year of the three-year action plan for the reform of state-owned enterprises. The reform of state-owned enterprises is expected to be accelerated. Previously, several central enterprise groups, including CETC and China shipbuilding, carried out a number of reform matters such as asset securitization, merger and reorganization. The integration of state-owned enterprises is expected to bring increased demand to management software manufacturers. In addition, since the beginning of 21 years, many governments have started the construction of state-owned assets cloud, promoted local state-owned enterprises to go to the state-owned assets cloud, and conducted centralized procurement for enterprise informatization needs. The reform of state-owned enterprises and the construction of state-owned assets cloud are expected to accelerate the localization of state-owned enterprise management software, Yonyou Network Technology Co.Ltd(600588) directly benefit; In recent years, the cloud strategy of the company has been continuously promoted, and the products have been polished and mature. After nearly two years of polishing, the new products such as yonnip / yonsuite launched previously have become more mature, and are expected to accelerate the implementation; In addition, the company is also promoting the implementation of business outsourcing. The promotion of cloud and outsourcing is expected to continuously improve the company’s gross profit margin. Since the beginning of 22 years, the factors affecting the statements caused by the stripping of financial business will also be eliminated, and the company’s performance and gross profit margin will continue to improve.
Cloud service orders continued to grow, and arr data continued to reach new highs. The company firmly promoted the cloud transformation strategy, successively stripped off the financial business of changjietong payment and Shenzhen Qianhai UFIDA Lihe Financial Services Co., Ltd., further focused on the main business of cloud services and software, and continuously optimized the revenue structure. In the first three quarters of 2021, the company’s cloud service and software business revenue increased by 23.9% year-on-year to RMB 4.664 billion (considering that the company has begun to outsource the implementation business, the growth rate of relevant revenue is higher after restoration), of which the cloud service business revenue increased by 83%, which has become the company’s main source of revenue. The annual recurring revenue (ARR) of the company’s cloud service business reached 1179.86 million yuan, an increase of 41.5% month on month, with large customers accounting for the highest proportion; The company’s contract liabilities related to subscription in cloud service business were 702.43 million yuan, an increase of 48.5% over the end of last year and 72.4% year-on-year.
Investment suggestion: it is estimated that the operating revenue of the company from 2021 to 2023 will be RMB 9.975 billion, RMB 12.708 billion and RMB 15.769 billion respectively, the net profit attributable to the parent company will be RMB 1.041 billion, RMB 1.268 billion and RMB 1.685 billion respectively, and the EPS will be RMB 0.32, 0.39 and 0.52 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.
