Yonyou(SH:600588) Capital Securities·2024-02-03 16:00Investment Rating - The investment rating for the company is "Accumulate" [2] Core Views - The company is experiencing rapid growth in orders, particularly from large enterprise clients, with a significant increase in contracts worth over 10 million, up 70% year-on-year. However, revenue growth is expected to be modest due to the longer delivery cycles of these contracts [4] - The company anticipates a net loss for 2023, with projected revenues of 9.725 to 9.820 billion yuan, representing a year-on-year growth of 5.0% to 6.0%. The net loss attributable to shareholders is expected to be between 880 to 980 million yuan, compared to a profit of 219 million yuan in the previous year [3][4] - The company is entering a new strategic phase, with plans to improve operational efficiency and cost control, following a significant increase in operating costs and expenses [4] Summary by Sections Financial Performance - The company expects revenues of 9.783 billion yuan in 2023, with a growth rate of 5.63%. For 2024 and 2025, revenues are projected to be 11.589 billion yuan and 13.784 billion yuan, respectively, with growth rates of 18.46% and 18.95% [5] - The net profit attributable to shareholders is forecasted to be -938 million yuan in 2023, with a recovery to 247 million yuan in 2024 and 703 million yuan in 2025 [5] - The earnings per share (EPS) is expected to be -0.27 yuan in 2023, improving to 0.07 yuan in 2024 and 0.20 yuan in 2025 [5] Market Position - The company has signed contracts with major clients such as China Merchants Group and China First Heavy Industries, indicating strong demand for its services [4] - The overall market index performance shows that the company's stock has been under pressure, with a current price of 11.19 yuan, compared to a one-year high of 28.76 yuan [3] Strategic Outlook - The company is undergoing organizational changes aimed at enhancing operational efficiency, which includes a significant increase in workforce and associated costs [4] - The recent appointment of a new president may signal the completion of structural adjustments and the beginning of a new growth phase [4]