\u3000\u3000 Yonyou Network Technology Co.Ltd(600588) (600588)
Fixed growth strengthens its competitive advantage, and SaaS leader leads the digital intelligence transformation of Chinese enterprises. This non-public offering of 166 million shares at an issue price of 31.95 yuan / share will raise a total of about 5.298 billion yuan. The funds will be used for the construction of yonbip, the UFIDA business innovation platform, the construction project of phase III R & D center of UFIDA Industrial Park (Nanchang), the replenishment of working capital and the repayment of bank loans. It is expected to improve the company's main business ability, innovation ability and consolidate the company's market position. Participating shareholders include hhlr under Hillhouse, which was allocated about 1 billion yuan, China International Capital Corporation Limited(601995) and e fund were allocated 512 million yuan and 253 million yuan respectively, and foreign capital such as GIC and JPMorgan were allocated about 344 million yuan and 288 million yuan. The equity structure is further optimized, which is expected to help SaaS leaders lead Chinese enterprises in digital intelligence transformation.
The strategic effects of cloud priority and subscription priority continue to show, the contract liabilities of cloud service business and subscription related contract liabilities are growing rapidly, and the quality of revenue continues to improve. With a market share of 13.9%, the company ranks first in the market share of application platform cloud services in China. As of the third quarterly report of 2021, the ARR of the company's cloud business was 1.180 billion yuan, an increase of 346 million yuan compared with the semi annual report, an increase of 41.5% month on month. The liability of cloud service contract was 1.304 billion yuan, an increase of 20.3% compared with the end of the 20th year, and a year-on-year increase of 38.5%. Among them, the liabilities of subscription related contracts were 702 million yuan, an increase of 48.5% over the end of the 20th year and 72.4% year-on-year. The high growth of the company's arr, cloud service contract liabilities and subscription related contract liabilities provides a solid guarantee for the company's focus on cloud business and high-quality growth. At the same time, the company has gradually promoted the implementation of strategies such as delivery, subcontracting and outsourcing, focused on subscription, platform and product-based revenue, and continuously improved the quality of cloud business revenue. The renewal rate of cloud service customers was further improved, including 108.26% for large customers, 73.31% for medium-sized customers and 80.75% for small and Micro customers.
The advantages of high R & D investment in casting products, orders continue to verify the competitiveness of products, the financial characteristics will more clearly reflect the progress of cloud transformation, the follow-up large enterprises will advance smoothly, and the friendly competition is expected to unfold gradually. The company promoted the strong product strategy. In the first three quarters, the R & D investment was 1.146 billion yuan, a year-on-year increase of 19.49%, and the revenue of R & D investment accounted for 23.23%, maintaining the leading level in the industry. Key customers are still the advantages of UFIDA. Order verification has strong product competitiveness. UFIDA has recently won many tens of millions of large orders in the field of large central enterprises and commercial banks. Typically, UFIDA signed more than 40 million orders with SDIC group and digital transformation cooperation with Aerospace Hi-Tech Holding Group Co.Ltd(000901) group shensoft company. As the first to win the bid for Chongqing Zhongyan digital construction project. In the field of commercial banks, Postal Savings Bank Of China Co.Ltd(601658) HR projects and China Everbright Bank Company Limited Co.Ltd(601818) HR projects have been implemented one after another. It is expected that the steady growth of "cloud + software" in the future will further verify the competitiveness of UFIDA products and services with the orderly competition between overseas competitors sap, Oracle and Chinese friends.
Ecological strategy improves the competitiveness of industrial solutions, and the revenue of large customers is expected to continue to increase, so as to ensure the company's future revenue and profitability. With the transformation of downstream enterprises from improving management efficiency to business innovation demand, UFIDA launched yonbip, a cloud service platform product, and accelerated the integrated development of BiP ecology through the integrated operation of "SaaS + PAAS + ISV cloud ecology". At present, the platform research and development has been iterated to the third generation, with SaaS services in eight core areas, effectively improving the competitiveness of industrial solutions. There are 9500 cloud market partners, 15000 settled products. In the first three quarters, cloud plus software, a large customer, achieved a revenue of RMB 3.152 billion, with a year-on-year increase of 30.1%, including cloud service revenue of RMB 1.772 billion, with a year-on-year increase of 73.31%. According to the disclosed customer unit price of benchmark projects of large enterprises, we estimate that 96 central enterprises, tobacco, finance and local super large enterprises will contribute nearly 100 billion to the market in ERP related fields in the future, It has effectively guaranteed UFIDA's future revenue growth space and profitability.
Investment suggestion: it is predicted that the company's revenue in 2021, 22 and 23 will be RMB 96.47, 126.05 and 16.437 billion respectively. Considering the continuous expansion of the track space where the company is located, the relative improvement of the competition pattern with its main competitors, the stable customer base of key customers, gradually promote the implementation of delivery, subcontracting and outsourcing, and give priority to the subscription of small and medium-sized enterprises to continuously improve the revenue quality of cloud business, Give the company a target market value of 189.1 billion yuan in 2022, corresponding to 15xps, and maintain the "buy rating".
Risk tip: macroeconomic downside risk, cloud business transformation does not meet expectations, and market competition intensifies.
