Yonyou(600588) 国海证券·2024-08-27 14:38Investment Rating - The investment rating for the company is upgraded to "Accumulate" [2][10]. Core Views - The company is making steady progress in its subscription transformation, with initial results in operational efficiency [2][4]. - The cloud revenue continues to rise, with significant growth in various customer segments, particularly in cloud services [4][5]. - The company has launched YonGPT 2.0, enhancing its capabilities in various verticals and expanding application scenarios [8][10]. Financial Performance - In H1 2024, the company reported revenue of 3.805 billion yuan, a year-on-year increase of 12.93%, and a net profit attributable to shareholders of -794 million yuan, showing a reduction in losses [3][4]. - For Q2 2024, revenue was 2.056 billion yuan, up 8.51% year-on-year, with a net profit of -341 million yuan, also reflecting a reduction in losses [3][4]. - The gross profit margin for H1 2024 was 52.5%, an increase of 3.6 percentage points year-on-year [5][6]. Customer Segments - Revenue from large enterprise customers reached 2.388 billion yuan, a year-on-year increase of 11.2%, with cloud service revenue of 1.765 billion yuan, up 16.8% [4][5]. - Revenue from medium-sized enterprises was 600 million yuan, up 8.3%, with cloud service revenue growing by 39.1% [4][5]. - Revenue from small enterprises was 456 million yuan, a 20.4% increase, with cloud subscription revenue of 309 million yuan, up 35.3% [4][5]. Cost Control and Efficiency - The company has implemented measures to control personnel size and optimize structure, leading to a gross margin increase and reduced expense ratios [5][6]. - The sales, management, and R&D expense ratios for H1 2024 were 30.04%, 14.86%, and 27.95%, respectively, showing a decrease compared to the previous year [5][6]. International Expansion - The company is accelerating its overseas business expansion, with a 34% year-on-year increase in contract signings from overseas subsidiaries [7][10]. Future Projections - Revenue projections for 2024-2026 are 11.063 billion yuan, 12.694 billion yuan, and 14.691 billion yuan, respectively, with net profits expected to be 52 million yuan, 382 million yuan, and 616 million yuan [8][9].