News Alert: Expect revenue to increase by 13.5%-16.5% in 2Q22, in line with market expectations
- Total revenue is expected to grow by 13.5%-16.5% y-o-y in 2Q22, in line with market expectations
- Net profit excluding extraordinary items is expected to increase by 10%-34% in 2Q22
- New version of YonBIP to be launched in the next two months will help Yonyou in domestic substitution in large enterprise market
- Expect revenue growth to accelerate in 2H22 with the resumption of economic activities
What”s New
– Yonyou (600588 CH) announced its 2Q22 preliminary results on 14 Jul 2022 after market close.
– Total revenue is expected to grow by 13.5%-16.5% y-o-y to Rmb2.2bn-Rmb2.3bn in 2Q22, with cloud service and ERP revenue increasing 16.9%-20% y-o-y.
– R&D expense is expected to expand by 30%+ y-o-y in 1H22 (v.s. 40.8% in 1Q22).
– Net profit excluding extraordinary items is expected to increase by 10.2%-33.5% y-o-y to Rmb142m-Rmb172m in 2Q22.
– New version of YonBIP is expected to be launched in the next two months.
Our View:
– We expect neutral share price reaction as the revenue growth in 2Q22 is in line with market expectations.
– We expect revenue growth to accelerate in 2H22 with the resumption of economic activities in China.
– New version of YonBIP is expected to be launched in the next two months, which would help Yonyou to further seize domestic substitution opportunities in the large enterprise market.
– We currently rate BUY on the counter; TP of Rmb39.4.