\u3000\u3000 Yonyou Network Technology Co.Ltd(600588) (600588)
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After the closing on January 25, 2022, the company issued the report on the issuance of A-Shares of non-public development banks in 2020.
Comments:
The company successfully raised 5.3 billion yuan through non-public offering and introduced a number of well-known investment institutions
The company has successfully completed this non-public offering recently, with an offering price of 31.95 yuan / share, and the final target of issuance is 17. Among them, hhlr Management Co., Ltd. was allocated 1 billion yuan; GIC Private Limited was allocated RMB 344 million; JPMorgan Chase Bank and National Association were allocated 288 million yuan; UBS AG was allocated 223 million yuan; Shanghai Gaoyi asset management partnership (limited partnership) was allocated 400 million yuan; Morgan Stanley International Co., Ltd. and J.P. Morgan Securities PLC were allocated 200 million yuan respectively. The total amount of funds raised in this issuance is 5.298 billion yuan, and the net amount of funds raised after deducting the issuance expenses is 5.258 billion yuan. After the funds raised from the issuance are in place, the total assets and net assets of the company will increase at the same time, and the asset liability ratio will decrease. This issuance has improved the company’s overall capital strength and solvency, optimized the capital structure, and provided effective guarantee for the company’s subsequent development.
The raised funds are intended to be used for the construction of yonbip and other projects, which is conducive to improving the profitability of the company
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. According to the company’s announcement, the construction project of yonbip, a business innovation platform of UFIDA, plans to use the raised funds of 4.597 billion yuan. The fund-raising investment project is conducive to improving the company’s comprehensive R & D ability and innovation ability, in line with the company’s long-term strategic objectives, promote the company to further expand its business areas, and then drive the company’s profitability and sustainable development ability.
Firmly promote the cloud transformation strategy and sign new contracts to ensure sustainable growth in the future
The company’s digital intelligence transformation and localization orders continued to accelerate the landing. The direct sales contract amount of cloud service and software business in the first three quarters of 2021 was 4.83 billion yuan, a year-on-year increase of 31.9%. The company’s arr, cloud service contract liabilities and subscription related contract liabilities increased rapidly. As of the end of the third quarter, the company’s cloud service arr was 1.180 billion yuan, an increase of 41.5% over the half year; The company’s contract liabilities of cloud service business were 1.304 billion yuan, a year-on-year increase of 38.5%. Among them, the liability of subscription related contracts was 702 million yuan, a year-on-year increase of 72.4%. By the end of the third quarter, the company had added 83700 cloud service paying customers, and the cumulative number of cloud service paying customers excluding financial cloud service customers was 337600.
Profit forecast and investment suggestions
The company has been deeply engaged in the field of traditional enterprise management software for many years and has a stable position in the industry; Cloud service is a strategic development direction. It is in a period of rapid growth and has a broad growth space in the future. It is predicted that the operating revenue of the company from 2021 to 2023 will be 10.046, 12.095 and 14.801 billion yuan, the net profit attributable to the parent company will be 1.085, 1.317 and 1.615 billion yuan, the EPS will be 0.33, 0.40 and 0.49 yuan / share, and the corresponding PE will be 113.92, 93.89 and 76.57 times. The company is in a critical period of cloud transformation, with more investment in R & D and other expenses and low net profit margin. It is more reasonable to adopt PS valuation method. The company’s PS in the past three years has mainly operated between 6-20 times. Considering the high growth trend of cloud service business, the company has maintained its target PS of 13 times in 2022, with the corresponding target price of 48.07 yuan, maintaining the “buy” rating.
Risk tips
Covid-19 recurrent pneumonia; The promotion of cloud service transformation is less than expected; The progress of R & D and promotion of new products is lower than expected; Brain drain; More manufacturers enter the enterprise cloud service market, and the industry competition intensifies.
