Escort of well-known institutions + market-style inclined office IT service leader Yidianyun landed on the Hong Kong Stock Exchange today
Epoint Cloud (2416.HK), China’s largest provider of comprehensive office IT solutions, has been officially listed on the Hong Kong Stock Exchange today.It is worth noting that as early as the investment stage before the public offering, YidianyunPrior to this, there were a series of companies such as Source Code Capital, Matrix Partners, Shunwei Capital, etc.industryWell-known institutions participated in it, and the IPO successfully introduced cornerstone investorsescorting its share price.
Superimposing the market style of Hong Kong stocks is the current stage of focusing on the “profit-driven” stage. Edian Yunben, which has the dual attributes of “growth” and “stability”, is focusing on the target. The company’s official listing transaction is bound to attract the attention of a round of market funds .
Escorted by a luxury investment team, the market style is tilted to the same level
The lineup of institutions participating in the pre-IPO investment stage of Easy Point Cloud is luxurious.
According to the prospectus, during the period from 2015 to 2021, the company has completed a total of 8 rounds of pre-IPO investment. The participating investors include Hongtai Fund, Koala Fund, Matrix, X Adventure, Shunwei, Source Code, GIC, SeasInvestment, Zhongguancun Zhongnuo and Innoven and other institutions.
Among them, Hongtai Fund was co-founded by Yu Minhong, the founder of New Oriental, and Sheng Xitai, the first chairman of Huatai United Securities. Fund; Matrix is one of the oldest venture capital funds in the United States. It is as famous as Sequoia Investment and KPCB in the United States, and has supported successful companies such as Apple Computer, FedEx, and SanDisk.
Behind Shunwei Capital is Lei Jun, the founder of Xiaomi Technology; Source Code Capital is mainly composed of national guiding funds, local science and technology innovation funds and other funds, and has invested in ByteDance, Meituan, Keikefang, Ideal Auto and other companies; Singapore government investment Corporation (GIC) is also one of the largest venture capital firms in the world.
It can be said that the growth of Yidianyun is promoted under the attention of all the big names in the industry, and major institutional investors have carried out several rounds of capital increase, which shows their attitude towards the company.
The successful introduction of cornerstone investment has further consolidated the foundation for the upward trend of Yidianyun’s stock price.
According to the prospectus, Epoint Cloud has signed an agreement with the cornerstone investor Ceyuan Investment for this IPO. The institution will purchase Epoint Cloud’s issued shares for US$19.97 million after the conditions are met. Based on the issue price of HK$10.19, the number of subscribed shares 15.381 million shares, accounting for 26.26% of the shares offered, and 2.68% of the total share capital after the offer.
Cornerstone investors are faced with a six-month lock-up period after listing. Their introduction not only makes the company’s value of Easy Point Cloud gain market recognition again, but also plays a certain role in stabilizing the company’s stock price after listing, laying a solid foundation for the stock price to rise.
At the same time, based on the current market style change, Yidianyun belongs to the target type favored by institutions, and the funds on the market may already be gearing up.
The degree of optimism in the current economic situation is different from before. Investors have shifted from the style of pursuing storytelling and super high growth potential, and have returned to companies with clear profit models and stable growth. At present, the investment node of Hong Kong stocks has also entered the profit-driven stage of the “sovereign risk premium decline->value revaluation->profit-driven” Hong Kong stock opportunity syllogism generally recognized by institutions, and the overall market style is biased towards “growth” + “stable” companies. This type of enterprise is the focus of current funds in the market.
As Yidianyun, which continues to realize its profitability and has good growth potential, this is its stage.
Multi-competitive barriers formed to create a leader in the supply of comprehensive office IT solutions
Easy Point Cloud is an enterprise that can provide one-stop, stable and flexible IT comprehensive solution services, helping customers to maximize the stable operation time of office IT and improve efficiency.
The company’s business covers three major sectors:1. Comprehensive office IT solution,Based on its own hardware and processing equipment configuration, equipment/engineer deployment, operation and maintenance support, performance optimization and equipment management services, customers can flexibly subscribe to office IT services;2. Equipment sales,That is to provide customers with the opportunity to purchase equipment, and at the same time sell second-hand equipment through the bidding platform Yipaiji to optimize the equipment mix;3. SaaS and other services,That is to develop SaaS products that meet the various digital needs of customers.Among them, the revenue contribution of the company’s on-the-go IT comprehensive solutions accounts for about 85%, which is the most core business segment.
At present, Easy Point Cloud has rich experience in operating large-scale equipment. As of the end of 2022, the company has approximately 42,000 subscription enterprise customers and approximately 1.1 million subscription equipment. At the same time, Easy Point Cloud can provide a very flexible subscription method. Customers can not only place orders on a monthly basis, but also do not need to purchase their own equipment, easily recover the remaining value of the equipment, and do not need to generate too much IT daily expenditure; and, Easy Point Cloud The response time in core markets (including Beijing, Shanghai and Shenzhen) was nearly ten times faster than the industry average.
Yidianyun, which effectively solves customer pain points, has an average customer retention rate of 72% in the three years from 2020 to 2022, maintaining a very high level. Another net cash retention rate that reflects customer retention indicators, Yidianyun’s three-year average net cash retention rate It even reached 113.6%.
In addition, Easy Point Cloud also has advantages in remanufacturing technology. The company has the only personal computer remanufacturing factory network in China with an annual production capacity of more than 600,000 devices. In recent years, the company’s average remanufacturing time is less than 10 days, and the equipment repair/replacement process under the warranty service of traditional IT service providers is twice as long as the remanufacturing time.
Through efficient back-end structure, rich experience in large-scale equipment operation and professional knowledge in remanufacturing technology in the office IT service industry, Easy Point Cloud buildsoutWith its unique competitive advantages, the company has also become a leading enterprise in the supply of comprehensive office IT solutions.
According to Frost & Sullivan, the revenue scale of China’s office IT comprehensive solution industry in 2021 will be 5.1 billion yuan, and Yidianyun will rank first in China’s office IT comprehensive solution industry with a revenue scale of 998 million yuan and a market share of 19.6%. The solution industry ranks first, surpassing the sum of the second to fifth places.
At the same time, in terms of remanufacturing capacity, Easy Point Cloud also ranks first in the industry with nearly 600,000 units, which is three times that of the second Lingxiong Technology.
Based on the successful construction of many competitive barriers, Yidianyun’s profitability is soaring.
The operating data is in full bloom and the profitability has soared
The operating indicators continued to be optimized, and the revenue scale of the three major business segments of Easy Point Cloud continued to grow.
According to the prospectus, the number of active customers of the company from 2020 to 2022 is 28,655, 38,774, and 43,313, which are in a high-speed growth trend. After a substantial year-on-year increase in 2021, the volume will be maintained in 2022 when the epidemic hits.
Transmitted to the revenue side, the company’s on-the-go IT comprehensive solutions will achieve revenues of 643 million yuan, 998 million yuan, and 1.165 billion yuan in 2020-2022, respectively. In addition, the continuous growth of equipment sales and SaaS and other service businesses will promote The company’s total revenue reached 813 million yuan, 1.184 billion yuan, and 1.372 billion yuan, a year-on-year increase of 28.6%, 45.6%, and 15.9%.
Superimposed gross profit margin maintained at a high level, and Yidianyun finally realized a sharp increase in profitability.
From 2020 to 2022, the gross profit margins of the company’s core business IT integrated solutions will reach 48.5%, 54.1%, and 55%, plus nearly 80% of SaaS and other services, making the overall gross profit margins reach 41.4%, 47.7% % and 45.7%, the total gross profit was 337 million yuan, 565 million yuan, and 627 million yuan respectively.
After excluding changes in fair value, listing expenses and other non-operatingfactorFinally, the adjusted profit reflecting the company’s profitability will reach 93.481 million yuan in 2021, a sharp turnaround from the loss of 44.524 million yuan in 2020, and will further increase to 135 million yuan in 2022, and the profitability will continue to be realized.
In terms of adjusted EBITDA, the company’s respective periods were 261 million yuan, 537 million yuan, and 660 million yuan, and the adjusted EBITDA profit margins were 32.08%, 45.38%, and 48.13%, respectively, showing a continuous improvement trend.
Looking forward to the future, under the background of multiple factors driving the growth of industry demand, Yidianyun still has a strong momentum for high growth in performance.
In the track of 40% average annual growth rate, future growth can be expected
First of all, the overall market size of enterprise office IT services is still in the growth channel.
Statistics show that despite the impact of the new crown epidemic, the number of small and medium-sized enterprises in China will increase from 44 million in 2020 to 49 million in 2021. It is expected that China’s office IT service market will further expand, and the number of small and medium-sized enterprises will increase to approximately 80 million in 2026. In addition, with the trend of digital business operations and telecommuting, most companies, including small and medium-sized enterprises, equip their employees with computers to meet internal communication and external business needs.
In this context, the market size of enterprise office IT services will increase from 146.6 billion yuan in 2017 to 156 billion yuan in 2021, with an average annual compound growth rate of 1.6%, and will reach 213.9 billion yuan in 2026, with an average annual compound growth rate of 6.5%.
Among them, the office that can solve the pain points of small and medium-sized enterprisesITcomprehensivesolutionmodel, with an average annual growth rate of nearly 48% in the future.
The office IT comprehensive solution model is to provide one-stop, stable and flexible office IT services related to the use of IT equipment, which can meet the diverse office IT needs of customers and realize the agility and flexibility of business operations, so it has a strong growth drivers.
Previously, the market size of office IT comprehensive solutions category increased from 400 million yuan in 2017 to 5.1 billion yuan in 2021, with a compound annual growth rate of 95.4%. Even so, the market size of this industry will only account for 3.3% of China’s corporate office IT service industry in 2021, and there is still huge room for growth. The agency predicts that its market size will reach 36.1 billion yuan in 2026, with a compound annual growth rate of 47.9% from 2021 to 2026.
In this context, as China’s largest provider of comprehensive office IT solutions, Easypoint Cloud will be the biggest beneficiary of industry growth opportunities, and after the company’s successful IPO fundraising, it will continue to strengthen its own competitive advantages and further enjoy the market dividend. From this point of view, Yidianyun, which can attract a large number of well-known investors and achieve a surge in profitability in a short period of time, still has sufficient growth potential in the future. The company’s successful listing on the Hong Kong Stock Exchange is expected to attract a large amount of funds on the market.
Special statement: This article is reproduced by the DoNews column authorized by the cooperative media, and the copyright of the article belongs to the original author and original source. The article is the author’s personal opinion and does not represent the position of the DoNews column. For reprinting, please contact the original author and source for authorization. (If you have any questions, please contact [email protected])