UFIDA Network (600588) 2019 First Quarterly Report Review: NCC + U8C Gradually Transform and Work Together to Help Digital Transformation
Core point of view The company’s cloud business grew rapidly in the first quarter of 2019, and the profit side turned losses in a few years.
Cloud business is expected to continue to maintain high growth during the year, and core cloud products such as U8C and NCC are updated to help grow.
At the same time, the traditional software business has grown steadily, and the scale of financial business will improve. Maintain a “Buy” rating.
Matters: The company released the first quarter of 2019 financial report: report and achieve operating income12.
52 ppm, an increase of 16 in ten years.
6%; net profit attributable to mothers was 8,221.
610,000 yuan, the same period last year may be 1.
08 thousand yuan.
Operating income grew steadily, and net profit turned losses into profits.
Revenue in the first quarter of 2019 increased by 16.
6%, of which: software business income 8.
460,000 yuan, at least +20.
6%; revenue from 上海夜网论坛 cloud services (excluding finance) is RMB 125.3 million, +95 per year.
0%, accounting for 31 of the company’s operating income.
6%; payment service income 7.
43 ppm, an increase of 230 in ten years.
1%; Internet investment and financing information service business realized income1.
97 ppm, a decrease of 29 per year.
At the same time, the net profit attributable to mothers was 82.21 million yuan, and even turned a profit.
While the software business maintained steady growth, the cloud business achieved expected growth, with large and medium-sized enterprises growing.
1%, small and micro enterprises increased by 100.
The cloud business has developed rapidly and the renewal rate has steadily increased.
The company’s cloud business has developed rapidly, with 4.77 million registered customers in Q1 2019, an increase of 16.
6%, about 37 customers.
980,000, an increase of 46 in ten years.
Release a new version of NC Cloud, start customer promotion, and merge U8C 3 to be released in mid-2019.
Version 0 is expected to provide comprehensive digital platform services for large and medium-sized enterprises.
In addition, the number of cloud ecological digital partners has exceeded 3500, and the total number of products and services has exceeded 5,500.
The renewal rates of the company’s cloud services for large and medium-sized enterprises and SMEs reached 63.
3% and 51.
2%, of which U8C’s renewal rate exceeds 90%.
We expect to increase the research and development and promotion of U8C, NCC and other core products, and continue to work with customers, and the renewal rate will promote further improvement.
Seize the digital potential of enterprises and highlight the market share of the “enterprise cloud services” market.
UFIDA’s upgrade to UFIDA Enterprise Cloud Services has won the No. 1 market share in China’s enterprise service market, No. 1 in China’s SaaS market, and No. 1 in China’s enterprise software market.
At the same time, under the background of enterprises realizing digitalization and self-controllable industries, customers have strong demand for cloud products.
UFIDA cooperates in the customer base of large and medium-sized enterprises and the current strategic positioning of core products, and strives to continue to maintain a strong market share.
It is expected that the annual cloud business is expected to achieve a growth of more than 100%.
Risk factors: The growth of cloud business is less than expected; the breakdown of software requirements and the development of financial services are lower than expected.
Investment suggestion: The company’s cloud transformation trend has become a reality. It is expected that the high growth of the business income represented by the cloud will start to drive the company’s market value to continue to grow while the profit realization will gradually advance.
We maintain the company’s EPS forecast for 2019-2021.
62 yuan, corresponding to the net profit attributable to shareholders of the parent company8.
US $ 9.2 billion, maintain “Buy” rating.