UFIDA Networks (600588): SAAS, a cloud-rich company, tops domestic market
Event: In 2018, the company achieved revenue of 77.
30,000 yuan, an increase of 21 in ten years.
4%; net profit attributable to mother 6.
12 ppm, an increase of 57 in ten years.
3%; net profit attributable to non-attributed mothers 5.
3.2 billion, an annual increase of 81.
The company’s 2018 revenue is close to the lower limit of the performance indicator range, and its net profit is close to the upper limit of the performance indicator range.
By quarter, 2018Q4, the company’s revenue was 31.
55 ppm, a 10-year increase2.
8%; net profit attributable to mother 4.
61 ppm, a decrease of 29 per year.
0%; deduct non-attributed net profit 4.
0.5 billion, down 33 a year.
Investment points: The financial and software business dragged down the company’s 2018Q4 performance slightly.
The company’s net profit attributable to its parent was 4 in 2018Q4.
61 ppm, a decrease of 29 per year.
The company’s 2018Q4 performance decline was mainly due to the financial and software business impact: the company’s financial business in 2018Q4 achieved revenue2.
89 ‰, a decrease of 17 per year.
Software business realized revenue23.
55 ppm, a decrease of 3 per year.
The decline in the company’s financial business was mainly affected by the economic downturn, the trend of industry supervision and the continued downturn in the secondary market; the decline in the software business was mainly due to the decline in IT capital expenditures caused by the deterioration of the operating environment of the physical enterprise and a higher base.
However, since this year, the state has implemented tax and fee reduction policies to supplement the warming of the capital market environment. We are optimistic about the future development prospects of the company’s financial and software businesses.
The company’s performance has grown steadily, and the enterprise SaaS market ranks first.
In terms of business, in 2018, the company’s software business achieved revenue of 55.
79 ppm, a ten-year increase of 8.
Cloud services business realized revenue 20.
9.4 billion, accounting for the company’s revenue continued to increase; payment services realized revenue1.
55 ppm, an increase of 81 in ten years.
8%; Internet investment and financing information services realized revenue 10.
88 ppm, an increase of 51 in ten years.
Cloud services (excluding financial cloud) achieved revenue8.51 ppm, a 108-year increase of 108.
The company’s cloud service business (excluding financial cloud) continued to maintain strong growth.
According to CCID Consulting’s 2018 annual market report, the company has generally surpassed its domestic counterparts, ranking first in Chinese enterprises’ SaaS market share.
Operating cash flow continued to improve.
The company’s net cash flow from operating activities in 2018 reached 20.
43 ppm, an increase of 42 in ten years.
8%, reflecting better operating conditions of the company.
The company’s net operating cash flow continued to increase, mainly due to the continuous decline in accounts receivable7.
0%, reaching 13.
9 billion; meanwhile, advance receipts are increasing by 26 each year.
3%, reaching 10.
8 billion, of which accounts received in advance of cloud business3.
10,000 yuan, an increase of 224 in ten years.
Capitalization of R & D funding has decreased.
The company’s R & D investment in 2018 reached 14.
USD 8.6 billion, an annual increase of 17.
21%, accounting for 19.
The capitalization ratio of R & D funding is 14.
24%, down 2 before 2017.
66pct, continued to maintain a high proportion of capitalization of R & D expenditure, reflecting the company’s prudent accounting treatment principles.
The cloud business is surging, and the estimated rate continues to rise.
1) In terms of the operation status of cloud business, the 杭州夜生活网 company’s various data has steadily increased: the number of registered customers gradually reached 467 in 2018.
210,000, and the number of corporate customers is gradually estimated to reach 36.
Among them, large enterprises gradually increased the number of customers to 70,000, an annual increase of 40%, and the customer renewal rate reached 63.
Small and micro enterprises gradually increased the number of customers to 11.
340,000, a year-on-year growth of 62%, and the customer renewal rate reached 49.
Chanjet Payments is growing customers17.
850,000 homes, an annual increase of 27.
2) In terms of cloud ecology, UFIDA Market Mall has more than 3,000 registered partners, 4,500 ecological products and services have been listed, and 45 cloud-converged products have been released / listed 都市夜网 in collaboration with the cloud market.
In addition, the company launched NCCloud for large enterprises in November 2018 to help large enterprises create digital business innovation platforms.
At present, the company’s cloud business has formed a perfect closed loop for cloud services for large, medium and small enterprises.
Profit forecast: We estimate that the company’s net profit attributable to shareholders of listed companies for 2019-2021 will be 7 respectively.
92, 9.96 and 11.
880,000 yuan, the corresponding EPS is 0.
52 and 0.
62 yuan, the current price corresponding to PE for 2019-2021 is 84.
2 and 56.
Considering that the company is a domestic ERP software leader and vigorously develops cloud service business, the company’s enterprise-level SaaS business has become the first domestic market share in 2018.
The company’s cloud services, software, finance and other functional businesses go hand in hand. Some operating data are gradually improving. We are optimistic about the company3.
The initial implementation of the 0 strategy.
Maintain the company’s “prudent recommendation” rating.
Risk reminder: Cloud services are growing less than expected; financial business risks occur; traditional software business is developing less than expected.