Real estate software service leader, perfect product layout. Ming Yuan Cloud Group is a leading digital service provider of real estate ecological chain in China. the company starts with property management software and continues to expand its product line. Relying on the head housing enterprises to form a first-mover advantage, the company provides enterprise-level ERP solutions and SaaS products for real estate developers and other participants in the industrial chain. SaaS products include cloud customers for marketing, cloud chain for supply chain market and cloud space for cloud purchasing and stock market. ERP solution focuses on enterprise resource management, including sales, cost, procurement, planning and expense modules.
Fast iteration of ERP in the cloud. Ming Yuan Cloud Group launched the cloud ERP solution in 2017, which is based on cloud architecture, which can iterate quickly to meet customer needs, providing customers with considerable scalability advantages, while helping the company achieve higher implementation flexibility and development efficiency. At the same time, the enterprise PaaS platform Skyline Open platform takes PaaS as the base, supports enterprise-class steady-state and sensitive dual-mode IT application construction and comprehensive opening, realizes business interconnection at the hybrid cloud level through the BPM process platform and iPaaS global integration platform, and focuses on the five independent capabilities of "agile development, global integration, process-driven, data insight, and scientific and technological innovation".
Digital transformation of deep ploughing real estate enterprises. Industry attributes and policy pressure increase the demand for digital operation of real estate enterprises. As the largest software solution provider for Chinese real estate developers, Ming Yuan Cloud Group has a prominent advantage. The company has an in-depth understanding of the business needs of real estate developers and has high customer stickiness. In 2019, the top 100 real estate developers who subscribed to product support services and value-added services of ERP solutions achieved a revenue retention rate of 159%, while those who subscribed to SaaS products achieved a revenue retention rate of 138%. More than 70 top 100 real estate developers have used company software solutions for more than five years.
Innovative products to achieve horizontal and vertical extension. Since 2014, the company has launched a variety of SaaS products to serve various business scenarios of the real estate ecological chain to meet the different needs of real estate developers, building materials suppliers and asset management companies. Cloud procurement and cloud space are expected to further expand the real estate industry chain. The company has also begun to expand the industrial development / operation / service market. In the past, the company mainly focused on the digital field of residential development. In the second half of 2021, the company fully entered the digital field of industrial development / operation service market. Launch targeted products and solutions. In addition, through the continuous optimization and upgrading of products, the combination of ERP solutions and SaaS products, and based on the open and scalable Skyline open platform infrastructure, the company will strengthen the deep cooperation between the company and industry leaders.
Investment suggestion: as the company continues to increase investment in SaaS business, expand more scenarios and participants, and enhance the value of products, it is expected that SaaS product revenue will maintain high growth in the future, and the share is expected to continue to increase, and the real estate SaaS market growth space is large. We estimate that the company's 22-24-year revenue is 26.01,32.92,4.046 billion yuan respectively, and the home net profit is-1.82,0.30,221 million yuan respectively. The company is given a 22-year target market capitalization of 39.015 billion yuan, corresponding to the target price of 19.75 yuan (HK $23.18), with a "buy" rating for the first time.
Risk hints: the operational risk of the real estate industry is rising; the promotion of new products is not as expected; the market competition is intensified; the epidemic affects the economic downside risk.