Yonyou(SH:600588) HTSC·2025-06-06 13:30Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 20.40 [8][9]. Core Insights - The company is actively embracing AI transformation, with continuous updates to its Agent use cases covering various enterprise processes such as finance, human resources, supply chain, and manufacturing [1][2]. - There is a significant increase in AI application procurement demand from large enterprises, with the company having served over 58,000 medium and large enterprises and signed contracts with 45 central state-owned enterprises by Q1 2025 [3]. - The internal use of AI technology has led to significant efficiency improvements, with a reduction in employee numbers to 19,594, down by 1,689 from the end of 2024, indicating a successful structural adjustment [4]. Financial Projections - The company expects revenues of RMB 99.58 billion, RMB 110.18 billion, and RMB 123.15 billion for the years 2025 to 2027, respectively, with EPS projected at RMB 0.05, RMB 0.17, and RMB 0.31 for the same period [5][7]. - The report indicates a recovery in contract signing amounts in February and March 2025, reflecting a positive trend in business performance [3]. Product Development - The company launched the YonGPT enterprise service model in 2023, followed by the YonGPT 2.0 version in 2024, and the "Yonyou BIP Enterprise AI" in 2025, which includes a three-layer architecture for comprehensive enterprise solutions [2].