UFIDA (600588): Yungao increased cash flow!

UFIDA (600588): Yungao increased cash flow!

Investment Highlights: Event: The company announced three quarterly reports. In the first three quarters, the company achieved operating income of 50.

09 million yuan, an increase of 10 in ten years.

14% (of which Q3 single quarter 16.

96 ‰, an increase of 9 in ten years.

96%); net profit attributable to mother 4.

470,000 yuan, an increase of 196 in ten years.

39% (of which Q3 single quarter is expected to be 0.

3.5 billion).

Performance is in line with market expectations.

Revenue in the first three quarters increased by 10.

14%, the core driving force is the cloud business growth of 125%, if the mutual gold business is excluded from affecting the actual software + cloud growth recovery.

In the first three quarters of 2019, the core growth driver of revenue was 125% growth in cloud business, of which SaaS service revenue4.

980,000 yuan, an increase of 161 in ten years.


At the same time, on the one hand, cloud data performed well, and then, cloud prepayments reached 5.

7.6 billion, an increase of 91 from the beginning of the period.

3%, implying 合肥夜网 that the share of public cloud in UFIDA’s revenue increased.

The mutual gold business controlled risks in 2019H1, and its revenue increased by half.

9%. If the influence of mutual gold business is excluded, the actual software + cloud growth rate will be refreshed.

The R & D capitalization rate and the decline in single quarter gross margin are the core reasons affecting Q3’s single quarter profit.

1) The company’s capitalization of R & D expenses in the first three quarters was only about 20 million, compared with 1 in the same period in 18 years.

4 billion, while the current R & D expenses increase by 26.

9% to 11.

3.4 billion.

2) The company’s single quarter gross margin fell to 53.

89%, historical gross margin level around 60%, mainly due to corporate payment business and cloud service gross margin (public cloud annual fee system, cost income mismatch) reasons, need to continue to observe.

The improvement of the cash flow of the industry as a whole needs to be focused on!

Accounts receivable is higher than the initial period5.

70%, advance receipts reached 12.

8.2 billion, an annual increase of 29.


The macro environment is relatively weak, the overall growth of the management software industry is flat, the key indicators of UFIDA’s cash flow have improved, which implies that the company’s industrial voice and product capabilities have risen together, and it should be focused on!

R & D investment continues to increase rapidly, and NCC is the focus of investment.

R & D expenses in the first three quarters of 201911.

340,000 yuan, an increase of 26 in ten years.

9%, accounting for 222 of revenue.


In 2019, the company’s iuap, NCC, U8C and other continuous repeated products were launched, of which NCC is the company’s current research and development focus.1) NCC is built for Fortune 500 customers and competes directly with SAP / Oracle.

2) With NCC as the basic product, the company has jointly established the “Enterprise Digital Autonomous and Controllable Service Alliance” with well-known domestic manufacturers such as China Software Association and Huawei, China Electric Science & Technology, Shanghai Zhaoxin, Godson China Science, 360 Enterprise Security, etc.It has actively promoted the digitalization and localization of enterprises.

The China-Taiwan strategy is a key step for UFIDA from customization to standardization.

In 2019Q3, there were more than 4,600 UFIDA platform partners (3,000 at the end of the 18th), and more than 7,100 products and services were expected to settle in (at the end of the year, 4,500).

In the future, UFIDA will output standardized business platforms / data centers / technologies centers, and partners will undertake more customized module development tasks.

The company focuses on enterprise software and services and is a leading enterprise management software provider in Asia.

Considering the company’s leading advantages in enterprise management software, benefiting from the intelligent upgrade of enterprises, huge space for enterprise-level services, it is expected that cloud service revenue will maintain a high growth, and profit forecasts will be maintained. It is estimated that revenue for 2019-2021 will be 9.6 billion, 11.7 billion, 142100 million yuan, net profit attributable to mother is 7.

8.1 billion, 10.

6.7 billion, 14.

8.4 billion.

Maintain the “overweight” rating.

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