Yonyou(600588) 国信证券·2024-06-04 13:02Investment Rating - The report maintains an "Outperform the Market" rating for the company [5][24][40]. Core Views - The company is expected to see a turning point in performance with revenue growth recovering, achieving an operating income of 9.796 billion yuan in 2023, a year-on-year increase of 5.8%, and a projected operating income of 11.195 billion yuan in 2024, representing a year-on-year growth of 14.3% [11][23]. - The company has launched multiple AI products, including the YonGPT enterprise service model, which strengthens its competitive edge in the market [2][19]. - The company is implementing a Globalization 2.0 strategy, expanding its market presence beyond Hong Kong, Macau, and Southeast Asia to Europe, North America, the Middle East, and Japan [2][19]. Summary by Sections Financial Performance - In 2023, the company reported a net profit attributable to shareholders of -967 million yuan, with a projected improvement to a net profit of 50 million yuan in 2024 [11][23]. - The gross margin for Q1 2024 improved to 50.85%, up 6.27 percentage points year-on-year, indicating effective cost control measures [15][19]. - The company expects to achieve a gross margin of 54.71% in 2024, gradually recovering from previous declines [20][29]. Business Development - The company has released the first enterprise service model, YonGPT, and continues to enhance its product line with the BIP3-R2 model, which broadens its functional capabilities [2][19]. - The core product renewal rate reached 92.9%, demonstrating strong customer retention and satisfaction [2][19]. - The company aims to build a digital and global commercial network, enhancing its service offerings to meet diverse customer needs [2][19]. Market Outlook - The company forecasts revenue growth of 11.195 billion yuan in 2024, 12.811 billion yuan in 2025, and 14.681 billion yuan in 2026, with corresponding price-to-sales ratios of 3.39, 2.97, and 2.59 [5][23]. - The report suggests a reasonable valuation range of 11.84 to 13.03 yuan per share based on projected performance and market conditions [5][24].