Yonyou(SH:600588) HTSC·2025-04-27 09:07Investment Rating - The report maintains a "Buy" rating for the company with a target price of 20.40 RMB [8][9]. Core Views - The company's Q1 2025 revenue was 1.378 billion RMB, down 21.22% year-over-year, with a net loss of 736 million RMB, a decrease of 62.41% year-over-year. However, contract signing amounts have shown signs of recovery since February 2025, driven by AI strategies, which are expected to accelerate performance recovery in 2025 [1]. - The cloud service segment has seen an increase in paid customers, reaching 918,800, with a year-over-year growth of 25% in subscription-related contract liabilities. The company is optimistic about long-term revenue growth despite short-term pressures [2]. - The overall gross margin for Q1 2025 was 39.06%, down 11.79 percentage points year-over-year, primarily due to increased costs associated with AI products. The company expects a recovery in gross margin over the year [3]. - The company launched its "AI First" strategy in March 2025, introducing "Yonyou BIP Enterprise AI" and expanding its ecosystem through partnerships with 18 domestic and international partners [4]. - Revenue forecasts have been adjusted downward due to short-term growth pressures, with expected revenues for 2025-2027 at 9.958 billion, 11.018 billion, and 12.315 billion RMB, respectively. The EPS estimates for the same period are 0.05, 0.17, and 0.31 RMB [5]. Summary by Sections Financial Performance - Q1 2025 revenue was 1.378 billion RMB, down 21.22% year-over-year, with a net loss of 736 million RMB [1]. - Subscription-related contract liabilities reached 2.27 billion RMB, up 25% year-over-year [2]. - The overall gross margin was 39.06%, down 11.79 percentage points year-over-year [3]. Strategic Initiatives - The company launched its "AI First" strategy, introducing new AI products and expanding its ecosystem [4]. - The cloud service segment has shown growth in paid customers, indicating potential for future revenue increases [2]. Earnings Forecast - Revenue forecasts for 2025-2027 are adjusted to 9.958 billion, 11.018 billion, and 12.315 billion RMB, respectively [5]. - EPS estimates for 2025-2027 are 0.05, 0.17, and 0.31 RMB [5].