Yonyou(SH:600588) Guoxin Securities·2025-11-13 06:45Investment Rating - The report maintains an "Outperform the Market" rating for the company [6][4][17] Core Insights - The company experienced a revenue decline of 2.7% year-on-year for the first three quarters of 2025, with total revenue reaching 5.584 billion yuan. However, it achieved a net profit attributable to shareholders of -1.398 billion yuan, marking a 3.9% year-on-year improvement in losses [1][10] - In Q3 alone, the company reported revenue of 2.003 billion yuan, a 3.7% increase year-on-year, continuing the growth trend observed since Q2 [1][10] - The cloud service revenue for the first three quarters was 4.298 billion yuan, accounting for 77% of total revenue, with a year-on-year increase of 2.3 percentage points [2] - The company’s core product, Youyou BIP, generated 2.15 billion yuan in revenue for the first three quarters, reflecting a 15.8% year-on-year growth, with Q3 growth reaching 31.9% [2] Revenue and Profitability - Revenue from large enterprise clients grew by 13.5% year-on-year in Q3, totaling 3.617 billion yuan for the first three quarters, a 2.4% increase year-on-year [3] - The company’s small and medium-sized enterprise segment turned profitable, with Q3 revenue growth of 6.8% [3] - The government and public organization segment faced a 29% decline in revenue year-on-year, primarily due to tightened budgets and extended project cycles [3] Future Projections - The company is expected to benefit from increasing AI demand and a growing share of cloud services, with projected revenues of 9.963 billion yuan, 10.903 billion yuan, and 12.169 billion yuan for 2025, 2026, and 2027 respectively [4][13] - The forecasted net profit attributable to shareholders is expected to improve from -554 million yuan in 2025 to 2.56 billion yuan in 2026 and 10.51 billion yuan in 2027 [4][13] Financial Metrics - The report provides detailed financial forecasts, including revenue growth rates and profit margins, indicating a gradual recovery in profitability over the next few years [5][15]