Event
The company released its 2021 annual report that revenue in 2021 was 2.185 billion yuan, an increase of 28.1 percent over the same period last year. Of this total, revenue from SAAS products was 1.338 billion yuan, an increase of 53.5 percent over the same period last year, an increase of 1.5 percent over the same period last year. Adjusted net profit was 307 million yuan, down 19.7 percent from the same period last year.
Brief comment
The SaaS business continued to grow at a high level. The development of the cloud guest and cloud chain business was in line with the expected SaaS product revenue growth of 53.5% year-on-year, and the revenue share increased from 51.1% to 61.2%. In line with previous expectations, the business achieved a net profit of 19.3 million yuan, and SaaS ARR increased by 47.6% year-on-year to 1.242 billion yuan. Among them, Yunke realized revenue of 1.03 billion yuan, an increase of 54% over the same period last year (H2 growth of 38%, in line with expectations). The main growth came from the improvement of ARPU, and arpu increased by 44% year-on-year to 62000 yuan. Cloud chain revenue increased by 37.6% (H2 increased by 62%, exceeding expectations), mainly due to the increase in the number of site coverage to 7500, an increase of 83% over the same period last year, and the area of cloud capital management and cloud property management reached 3.44 trillion square meters, an increase of 167% over the same period last year. With the beginning of March 2022, the six ministries and commissions of the country have successively stabilized the property market, and some cities have begun to relax the approved prices and lower the purchase requirements. We believe that the housing development market will gradually return to the normal development stage after the epidemic in March.
Comprehensively develop the industry development / operation / service digital market to create all-SaaS products
Since 2018, the company has entered the industrial real estate field through cloud asset management and cloud property, and has realized that the potential space of this market is not lower than that of the housing market. According to the statistical yearbook of urban construction in 2020, the proportion of industrial land in the new construction land has reached 29%, which is similar to that of residential land, but the digital supervision ability of industrial land is much lower than that of residential land. In the future, the company will use Skyline platform to launch corresponding cloud products according to the needs of industrial users, and jointly provide services for industrial real estate customers with ERP and cloud chain, which are mainly used in the housing market.
Using Skyline platform to maintain product iterative efficiency and moat, and continuously strengthen SaaS innovative products and R & D with Yunke and Cloud chain as the core is the company's moat. The company invested 642 million yuan in R & D in 2021, an increase of 80.5% over the same period last year, and the number of R & D personnel rose to 2123, an increase of 64.8% over the same period last year. Among them, the focus of R & D is the investment of Skyline platform. At present, the Skyline platform has fully embraced localization and can support domestic chips and operating systems. Five sets of products have gradually developed and matured, and the support training work with zero code and low code has entered the next city, laying a technical foundation for the improvement of the arrival efficiency of follow-up products. It is expected that the growth rate of R & D in 2022 will be lower than that in 2021, which is in line with the growth rate of SaaS business revenue. In the housing market, the company officially launched ERP cloud promotion in March to meet the procurement needs of small and medium-sized developers. In terms of Yunke and cloud chain products, while actively expanding the real estate of state / central enterprises, the company will also strengthen module-level product innovation, that is, continue to enhance the site coverage of Yunke ARPU and cloud chain.
Investment suggestion: we expect the company to achieve revenue of 26 or 3.2 billion yuan from 2022 to 2023, an increase of 19% and 25% over the same period last year, and an adjusted net profit of 2.3 yuan and 360 million yuan. With the stabilization of the housing market and the expansion of the industrial land market, the company's business development continues to improve, maintaining the "buy" rating.
Risk hint: the progress of real estate sales is not as expected, and the progress of construction site is not as expected.