UFIDA (600588): Cloud pre-receiving exceeded expectations growth quality optimization
The company’s performance has maintained a high growth rate. One thing is that the growth-driven structure has undergone significant changes. Cloud services have become an increasingly important driving force for growth. At the same time, the quality of cloud services has also greatly improved from the perspective of advance receipt.
UFIDA is a powerful booster of the Industrial Internet, and the value of open ecological platforms is scarce and continues to be highly recommended.
Event: The company released its 2018 annual report and gradually realized non-financial cloud service revenue8.
510,000 yuan, an increase of 108% in ten years; net profit attributable to mother 6.
12 ppm, 南京桑拿网 an increase of 57 in ten years.
3%; deduct non-net profit 5.
32 ppm, an increase of 81 in ten years.
6%; non-net profit excluding the cost of equity incentives is 7.
6.6 billion, an annual increase of 57%; operating net cash flow 20.
43 ppm, an increase of 42 in ten years.
8%; advance payment for cloud business3.
01 trillion, a year-on-year increase of 224%.
Optimized growth structure and improved cloud business quality.
The market has always had risk concerns about the rapid growth of UFIDA financial services, especially Internet investment and financing information services. Looking at the company’s annual report revenue structure, the financial services revenue growth rate has dropped from 229% in 17 years to 55% in 18 years.The absolute value added also decreased significantly.
Financial services’ performance-driven contribution has increased significantly, while non-financial cloud services continue to grow more than double, becoming the company’s main driving force for growth, and UFIDA’s business growth structure has been further optimized.
The advance of accounts received from the cloud business grew faster than expected, which drove the increase in the company’s operating payables and brought a significant increase in operating net cash flow.
We have been focusing on that the cash flow under the SaaS subscription fee model can better reflect operating performance, and the advance payment is an important indicator of cloud quality.
The proportion of cloud pre-receipt / non-financial cloud revenue rose from 23% in 17 to 35% in 18, which also shows that the quality of UFIDA’s business is rapidly improving, focusing on resources to help promote the Industrial Internet.
18 years of research and development funding14.
86 ppm, a ten-year increase of 14.
6%, accounting for 19% of revenue.
3%, of which cloud business R & D accounted for 48.
UFIDA’s strategic focus is gradually tilting towards the cloud. Under the environment of overall economic growth under pressure and the structure facing optimization, companies are embracing the industrial Internet and adding more new models. The pace of informatization is accelerating. The scale effect and development potential of UFIDA will also increase.Bring strong performance flexibility to the company.
“Highly Recommended-A” investment rating.
The company is expected to have a net profit of 8 in 19-20.
US $ 1.2 billion, a leader in scarce integrated cloud services, with great development advantages in ecological development, and the most beneficial target for enterprise informatization upgrade, maintaining the “strongly recommended-A” rating.
Risk Warning: The progress of cloud service business is not up to expectations; the risk of brain drain.