Company Profile

Enjoyor Technology Co Ltd is a China-based company principally engaged in the provision of smart city solutions and data operation services.

The Company's main products include intelligent transportation, intelligent medical treatment and smart city. The Company provides integrated smart city solutions and data operation services, including information system consulting and design, software development, system integration, operation and maintenance services.

The Company operates its business within domestic market, with East China as its main market. (Source: MarketScreener)

Event

On June 13, 2023, Enjoyor Technology Co Ltd (“Enjoyor”/ the company) released its restricted stock incentive scheme for 2023 (draft).

On June 30, the company first granted 15.5 million restricted stocks to 252 employees at the price of CNY 7.20 per share.

On July 3, Enjoyor launched its product mix with digital governance modes and application scenarios, totally launching more than 100 brand-new digital governance algorithm modes.

Investment Highlights

With the stock incentive scheme launched, Enjoyor has consolidated the cohesion of its core talents.

The scheme planned to grant 16 million restricted stocks, accounting for 2.01% of its outstanding shares, with 15.5 million for the first time at the price of CNY 7.20 per share to 252 employees including the company’s directors, senior managers and core technicians, occupying 39.81% of the total on the job in 2022.

The first grant requires the revenue growth rate is no lower than 24.1%, 42.7% and 61.3% in 2023, 2024 and 2025 compared with 2022, with revenue no less than CNY 2 billion, CNY 2,3 billion, and CNY 2.6 billion; or the net income growth rate is no lower than 188.2%, 260.3%, and 332.3%, with the figure no less than CNY 200 million, CNY 250 million, and CNY 300 million, respectively.

The assessment targets in this scheme progress steadily, showing its firm confidence in its growth.

The digital governance modes deeply combine with application scenarios.

The company has launched over 50 social governance modes, more than 30 intelligent transportation modes and 20 intelligent health modes, covering social governance, intelligent transportation, smart health.

For example, its “Government Smart Q&A Agent” could effectively overcome shortcomings of manual solutions, making government services more efficient, economic and professional.

The modes launched this time is conducive to further empowering the transformation of digitalization for the industry and promoting the deep combination of artificial intelligence and application scenarios.

The continuous empowerment of AI helps build digital city ecosystem.

The company has always incorporated AI into its products and solutions, and has been evolving towards personalization, customization and intelligence.

In May of 2023, the company launched “Leading Central System” at its digital industrial ecology summit, helping establish new mode of government grassroot governance.

The company also launched its model supermarket, featuring instant use, smooth transfer and data security, and boasting resilient capabilities of capacity expansion.

With the continuous evolution of AI, the company will accelerate digital reforms and intelligent upgrading to establish digital city ecosystem.

Earnings forecast and investment recommendation

We estimate its net income attributable to shareholders at CNY 190 million/ CNY 241 million/ CNY 292 million in 2023/ 2024/ 2025. Reiterate “Outperform”.

Potential risks

less-than-expected budgets for downstream clients; slower-than-expected promotion of new products; intensified competition