Key points of investment
Event: Guangyun Technology released its semi-annual report for 2023. In terms of revenue, the company 23H1 achieved revenue of 233 million yuan, a year-on-year decrease of 6.9%; gross profit margin was 63.88%, an increase of 1.7 pct over the same period last year.
Net profit to the mother was 44,5857 million yuan, and the loss narrowed sharply by 42.61% year on year. The net cash flow from 23H1 operating activities was -1,5535 million yuan, and the loss narrowed sharply by 85.63% year-on-year.
Cost reduction and efficiency were focused on the main business, and various expenses fell year-on-year: in the context of the impact of multiple factors such as a slowdown in macroeconomic growth and an intensification of the market competition pattern, the company made timely policy adjustments, focused on main business, optimized personnel structure, and fine management, so that various expenses in the current period fell compared to the same period last year, and the overall cost for 2023 H1 dropped significantly from the same period last year. Among them, management expenses decreased by 20.1795 million yuan compared to the same period last year, a year-on-year decrease of 33.19%, and sales expenses decreased by 7.0497 million yuan compared to the same period last year, a year-on-year decrease of 7.87%. R&D investment accounts for more than 30% of revenue. In a situation where revenue was blocked, falling expenses supported the company's overall losses to narrow.
The SaaS product strategy of big merchants is accelerating, and related business is growing steadily: In 2023, H1 continued to focus on the big merchant strategy, carried out detailed management from all dimensions, and made every effort to accelerate the e-commerce SaaS product strategy of the big merchants. Related SaaS businesses all achieved steady growth. The company's core products (mainly including Kuaimai ERP, Shenhui Art Robot, Kuaimai Xiaozhi customer service robot, Juwo WMS, etc.) H1 revenue in 2023 increased by 21.26% compared to the same period last year; new SaaS projects went through Continuous investment in production, research and market development, product functions and stability have been gradually improved, and customer satisfaction and market recognition have continued to increase. In terms of products, the marketing products of major merchants and the smart customer service product Kuaimai Xiaozhi 2023H1 grew rapidly. The revenue of Huaimai Xiaozhi increased 153.45% year over year, and Kuaimai Xiaozhi's revenue increased 414.16% year over year.
SaaS products for small to medium businesses maintain a multi-platform strategy, and the growth trend is good: in H1, 2023, the company continued to increase investment in social e-commerce platforms such as Douyin and Kuaishou. The revenue of SaaS products for small and medium-sized businesses on the Douyin platform increased by 57.32% compared to the same period last year, and Pinduoduo platform revenue also maintained steady growth. Courier Assistant is a model for the company's multi-platform SaaS product. 2023H1's revenue continues to grow. The number of its Douyin paying users has increased by 34.37% compared to the beginning of the year, and multi-platform revenue is growing rapidly. The share of total revenue from SaaS products on multiple platforms for small and medium-sized merchants increased from 35.85% in 2022 to 41.94% in H1 in 2023.
Profit prediction and investment rating: In 2023, H1's big business strategy has paid off, SaaS products for small and medium-sized businesses have grown steadily, and results in cost reduction and efficiency have been shown. We adjusted the company's revenue forecast for 2023-2024 from 590/684 million yuan to 544/621 million yuan, introduced a revenue forecast of 710 million yuan for 2025, corresponding to 7.5 times PS for 2024, and maintained the “buy” rating.
Risk warning: core competitiveness risk, macro environmental risk, risk of changes in the e-commerce industry pattern.