Yonyou(SH:600588) Guohai Securities·2024-03-31 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1][8] Core Views - The company is expected to see accelerated revenue growth in 2024 due to a significant increase in order scale and deepening cloud transformation [3][4] - The company has reported a substantial increase in contract signing amounts, with a year-on-year increase of 17.6% and a 71.1% increase in contracts worth over 10 million [3][4] - The introduction of new products, particularly BIP3, is anticipated to yield benefits, with the company achieving significant sales and customer adoption [6][4] Summary by Sections Financial Performance - In 2023, the company achieved revenue of 9.796 billion, a year-on-year increase of 5.77%, but reported a net loss attributable to shareholders of 967 million, compared to a profit of 219 million in the previous year [2][7] - The fourth quarter of 2023 saw revenue of 4.088 billion, a year-on-year increase of 11.51%, but a decline in net profit attributable to shareholders to 63 million from 759 million in the same period last year [2][7] Market Dynamics - The company is experiencing growth in large enterprises, with revenue from large, medium, and small enterprises increasing by 4.3%, 21.4%, and 17.7% respectively [4][5] - The cloud service revenue from large enterprises grew by 7.7%, while medium and small enterprises saw increases of 36.9% and 28% respectively [4][5] Product Development - The company launched BIP3, which has shown strong performance and stability, and has been adopted by numerous leading enterprises for digital transformation projects [6][5] - The introduction of YonGPT, the first enterprise service model in the industry, has been integrated with various company products, enhancing digital capabilities for clients [6][5] Future Projections - The company expects to see revenue growth rates of 14%, 15%, and 18% for the years 2024, 2025, and 2026 respectively, with net profit projections of 291 million, 555 million, and 968 million for the same years [7][8] - The current price-to-earnings ratio (P/E) is projected to decrease from 140.57 in 2024 to 42.18 by 2026, indicating potential for improved valuation as profitability increases [7][8]