Yonyou(SH:600588) Guoyuan Securities·2024-04-08 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% in the next six months compared to the Shanghai Composite Index [7][9]. Core Insights - The company achieved a revenue of 9.796 billion yuan in 2023, representing a year-on-year growth of 5.8%. However, it reported a net loss attributable to shareholders of 967 million yuan [4]. - The company completed a significant organizational model upgrade in 2023, transitioning from a region-based to an industry-based model for large enterprise clients, which is expected to positively impact future business growth [4]. - The launch of the enterprise service model YonGPT is aimed at enhancing digital transformation for clients across various sectors, contributing to a revenue increase of 7.8% in enterprise customer business [5]. - The company initiated a Globalization 2.0 strategy in 2023, expanding its market presence beyond Hong Kong, Macau, and Southeast Asia to Europe, North America, the Middle East, and Japan [6]. Financial Performance - The company forecasts revenues of 10.915 billion yuan, 12.016 billion yuan, and 13.031 billion yuan for 2024, 2025, and 2026, respectively, with net profits projected to be 134 million yuan, 392 million yuan, and 656 million yuan during the same period [7][12]. - The earnings per share (EPS) are expected to improve from -0.28 yuan in 2023 to 0.04 yuan in 2024, 0.11 yuan in 2025, and 0.19 yuan in 2026, reflecting a recovery in profitability [12].