Yonyou(600588) 新浪财经· Xin Lang Cai Jing·2025-04-29 02:35Core Viewpoint - In Q1 2025, the company reported a significant decline in revenue and net profit, but there are signs of recovery in contract signing amounts starting from February 2025, driven by AI strategies, leading to a maintained "buy" rating [1]. Group 1: Financial Performance - Q1 2025 revenue was 1.378 billion yuan, down 21.22% year-over-year, with a net profit attributable to shareholders of -736 million yuan, a decrease of 62.41% year-over-year [1]. - The company experienced a notable drop in revenue due to a decline in contract signing amounts in Q4 2024 and January 2025, but there is an improvement trend observed from February 2025 [1]. Group 2: Cloud Business Development - In Q1 2025, the number of paid cloud service customers reached 918,800, with an addition of 46,300 new customers [2]. - Subscription-related contract liabilities increased to 2.27 billion yuan, up 25.0% year-over-year [2]. - Subscription revenue from medium-sized enterprises grew by 45.6% year-over-year, while revenue from small and micro enterprises increased by 15.6% year-over-year [2]. Group 3: Operational Efficiency and Cost Management - The overall gross margin for Q1 2025 was 39.06%, a decrease of 11.79 percentage points year-over-year, primarily due to increased costs associated with AI products [3]. - The company reduced its workforce to 19,594 employees, a decrease of 1,689 from the end of 2024, indicating a focus on optimizing personnel structure [3]. Group 4: AI Product Development - In March 2025, the company launched the "AI First" strategy, introducing "Yonyou BIP Enterprise AI" to enhance its digital capabilities [4]. - The company added 15 new intelligent agents in Q1 2025, covering various sectors such as finance, human resources, supply chain, and manufacturing [4]. - The establishment of the "Zhu Lang Chuhai" ecological alliance with 18 partners aims to accelerate overseas business expansion [4]. Group 5: Profit Forecast and Valuation - Revenue forecasts for 2025-2027 have been adjusted to 9.958 billion, 11.018 billion, and 12.315 billion yuan, respectively, due to short-term revenue growth pressures from subscription transformation [5]. - EPS estimates for 2025-2027 are revised to 0.05, 0.17, and 0.31 yuan, respectively [5]. - The target price is set at 20.40 yuan, based on a 7x PS valuation for 2025, maintaining a "buy" rating [5].