UFIDA (600588) 2019 performance preview comment: R & D performance in line with expectations maintains high investment in cloud products

UFIDA (600588) 2019 performance preview comment: R & D performance in line with expectations maintains high investment in cloud products

Event UFIDA disclosed the 2019 annual results pre-announcement announcement. It is expected that the net profit attributable to mothers in 2019 will be about 10.

41?
12.

8.5 billion, compared to 6.
.

12 billion percent up 70%?
110%.

The amount of non-recurring gains and losses is about 4.

29?
5.

US $ 6.7 billion, mainly due to the disposal of some long-term equity investments and the appreciation of financial assets held by the company that are measured at fair value and whose changes are recorded in profit or loss; net non-attributable net profit is approximately 6.

12?
7.

18 trillion, compared with 5.
.

32 billion percent up 15%?
35%; according to the single quarter, the company expects to achieve a net profit attributable to its parent of approximately 5 in Q4 2019.

94?
8.

3.8 billion yuan, compared with 4 in the same period last year.

61 billion percent growth 29%?
82%, deducting non-attributed net profit of about 4.

38?
5.

44 trillion, compared with 4.
.

05 billion percent up 8%?
34%.

A brief evaluation of the company’s performance is in line with expectations. The overall level of non-net profit is expected to be basically the same as the growth rate of total revenue. R & D and other expenditures will ensure growth momentum.The company’s overall expense ratio has not changed much, and the growth rate of profits and income has been synchronized.

The company maintains the R & D and promotion of cloud services and other strategic businesses. In 2019, the company continued to release new platforms and new products, and kept alternating in terms of low-code development, cloud-native architecture, and Taiwan-China architecture.

The launch of YonSuite, a cloud-native architecture SaaS product for growing enterprises, strengthens the output of public cloud products to small and medium-sized enterprises, and has the potential for rapid replication and expansion.

Iuap5.

The 0 platform supports a complete product architecture and rich cloud service solutions for large and medium-sized enterprises, paving the way for deep expansion of users in 2020 and beyond.

UFIDA’s accumulated R & D investment for many years is the main source of its cloud product improvement, and it has been continuously growing through R & D, trial and error, sales, and feedback.

Since the shutdown of the traditional NC software version in the second half of 2019 and the vigorous development of NC Cloud hybrid cloud solutions, UFIDA cloud services have been continuously improved from the internal management of the enterprise to the external connection and collaboration. Is it expected that 2019?
Maintain rapid growth in cloud service revenue in 2020.
The cloud service module continues to improve, and the cloud native architecture supports and gradually develops into 2019. The company releases a series of vertical products such as UFIDA Cloud IoT services, security and environmental protection services, logistics services, energy services, manufacturing cloud services, etc.Committed to providing enterprises with integrated and interconnected NC Cloud intelligent manufacturing solutions.

The recently launched manufacturing cloud-equipment service is based on a new generation of cloud original architecture and provides a SaaS service model. Through on-site installation and delivery, IoT Internet of Things services, operational data monitoring, intelligent diagnostic forecasting, after-sales service and other comprehensive closed-loop management and data precipitation, integrated AI, Intelligent algorithm capabilities to help enterprises achieve real-time management and control of the equipment’s entire life cycle.
At the same time, it has opened up interconnections among equipment manufacturers, owners, service providers, logistics and other parties, extended and integrated the downstream industry chain, and built a social service ecosystem.

Driven by the continuous optimization on the Iuap platform and the introduction of new application services, UFIDA products have been gradually polished, especially in large and medium-sized enterprises to promote and expand their competitive advantages.

Cloudization and China-Taiwanization have gradually developed smoothly, and large enterprises’ hybrid cloud services maintain a high growth rate.

Central enterprises, state-owned enterprises and large private enterprises are the main survey population in the market. They have high demand for information technology and cloud services, and have been replaced by antioxidants.

UFIDA’s hybrid cloud NC Cloud for large enterprises continues to be a benchmark for customers, delivery cycles, customer value, and software applications are becoming more complete.

UFIDA’s ecological cooperation in Kunpeng industry, large customers change system requirements, and the acceleration of the layout process supports the rapid growth of cloud business.

At the same time, under the background of Xinchuang, large-scale enterprise management information systems accelerate the implementation of supplier product replacements. Based on UFIDA NC Cloud, the company has completed the Galaxy Unicorn, the successful bid for Unicorn, the deep operating system, China Universal, Dameng, and Huawei GaussDB database.Loongson, Huawei Kunpeng processors, and Huawei OceanStor series storage are compatible and compatible certifications, and cooperate with ecological manufacturers such as Huawei to promote security development.

UFIDA upholds 3.

Strategy 0, committed to becoming an ecological builder in the era of corporate Internet, based on the accumulation of technology and know-how from customers in the enterprise-level service industry for more than 20 years, combined with open platforms to launch cloud services.

We are optimistic about the company’s competitive advantages and growth prospects in the enterprise-level service market. Based on the accumulation of services to large and medium-sized enterprises, the cloud business is supported by stronger growth.

With the increase in the proportion of cloud business, the company’s financial indicators such as accounts received in advance and operating cash flow have shown an upward trend, and the quality of profits has improved.

In 2018, UFIDA’s operating net cash flow was approximately 2 billion (YOY 43%), corresponding to 39 times the static PCF.
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The company’s cash flow is expected to maintain steady growth.
In 2020, they will be 21 trillion and 27 trillion respectively, corresponding to PCF of 38x and 29x.
At the same time, in combination with the segment assessment method, we believe that the current intrinsic value of the company is undervalued and we give a “buy” rating.