Yonyou(600588) 中银证券·2024-08-02 06:01Investment Rating - The report maintains a "Buy" rating for the company [1][3][4] - The market price is noted at RMB 9.45, with a sector rating of "Outperform" [1] Core Insights - The company is expected to face short-term performance pressure due to increased R&D investments, but it stands to benefit from a new round of fiscal and tax reforms [3][4] - The company anticipates a revenue of RMB 3.71 billion to RMB 3.88 billion for the first half of 2024, representing a year-on-year growth of 10% to 15% [3] - The net loss attributable to shareholders is projected to be between RMB 750 million and RMB 880 million, with a reduction in loss compared to the previous year [3][4] Summary by Sections Financial Performance - The company’s revenue for 2024 is forecasted to be RMB 11.745 billion, with a growth rate of 19.9% [5] - The net profit for 2024 is expected to be RMB 211 million, showing a significant recovery from a loss of RMB 967 million in 2023 [5][6] - The EPS for 2024 is projected at RMB 0.06, with a PE ratio of 152.8 [5][7] R&D and Business Strategy - Increased R&D spending has led to higher amortization of intangible assets, contributing to the current losses [4] - The company is leveraging its tax cloud platform to capitalize on the demand for tax management solutions among large enterprises, with notable clients like Midea and CITIC [4][6] - The integration of AI into various business functions is expected to create new growth opportunities, enhancing recruitment efficiency and quality [4][6] Market Position and Valuation - The company’s market capitalization is approximately RMB 32.305 billion, with a three-month average trading volume of RMB 209.88 million [2] - The report emphasizes the company's strong position in the tax cloud market, which is expected to grow due to ongoing fiscal reforms [4][6] - Future earnings projections for 2025 and 2026 are RMB 436 million and RMB 752 million respectively, indicating a positive growth trajectory [5][6]