Brief comment on performance
On August 23, 2023, the company disclosed its semi-annual report that its revenue in the first half of the year was 760 million yuan, down 13.5% from the same period last year. In the first half of the year, the net profit of returning to the mother was-320 million yuan, reducing the loss by 42.6% compared with the same period last year; the net profit paid by the shares was-97 million yuan, reducing the loss by 71.7% compared with the same period last year.
The net cash flow generated by business activities is 270 million yuan, and the accounts receivable is 160 million yuan. The overall cash flow and accounts receivable are operating normally.
Business analysis
Revenue from cloud services reached 640 million yuan, down 5.1% from the same period last year, mainly due to a decline in cloud service orders in the second half of 2022 compared with the same period last year, which negatively affected cloud service revenue in the first half of 2023. The amount of outstanding contracts for cloud services during the reporting period was 840 million yuan, an increase of 8.4% over the end of 2022, laying the foundation for the subsequent growth of cloud services. Yunke's revenue in the first half of the year was 425 million yuan, down-5.5% from the same period last year, of which the number of sales offices covered fell 10.7% compared with the same period last year, but ARPU increased by 5.9% to 35800 yuan, mainly due to increased demand for VR products such as digital sand tables. Cloud chain's revenue was 60 million yuan, an increase of 12.3% over the same period last year. Due to the introduction of project management, safety management and other new products in the first half of the year, the number of sites covered and ARPU increased.
ERP achieved revenue of 130 million yuan, down 39.9% from the same period last year, mainly because private housing developers were cautious about their digital investment; although the company turned to the in-depth management of customers of state-owned central enterprises, the overall customer structure adjustment still needs a certain business cycle. In the ERP details, the decline of software and implementation with more rigid requirements began to narrow, and the optional product support and value-added services were greatly affected by the market environment.
The reduction of cost and efficiency, the optimization of organizational mechanism has achieved remarkable results, and the net profit and loss is expected to continue to narrow. During the reporting period, the number of employees in the company dropped to 2925, down 23.4% from the same period last year, which made the three fees excluding share payments drop 16.5% compared with the same period last year, including 14.7%, 21.1% and 17.7% respectively for sales, management and R & D expenses. During the reporting period, per capita income was 244000 yuan, an increase of 11.9% over the same period last year. With the introduction of a number of stable real estate policies, the real estate industry is expected to bottom out and pick up. Through active cooperation with central state-owned enterprises and cutting into the field of industrial infrastructure, human efficiency is expected to continue to improve with the recovery of the industry.
Earnings forecast, valuation and rating
With reference to the company's semi-annual report performance data, we lowered the company's operating income forecast for 2023 to 1.64 billion yuan, and adjusted the homing net profit forecast to-6.3 pounds, corresponding to EPS of-0.33 and 0.14, respectively, to maintain the "buy" rating.
Risk hint
Downside risk of real estate market; lower-than-expected risk of customer development of state-owned central enterprises; exchange rate risk.