UFIDA (600588): Cloud continues to double software growth and advance receipts exceed expectations

UFIDA (600588): Cloud continues to double software growth and advance receipts exceed expectations

The company’s first-quarter performance exceeded expectations, and the traditional software business affected by the economic environment has been growing faster than expected, and the cloud continued to maintain a nearly double growth rate.

We believe that the advance receipts have also performed better than expected due to the improvement of the quality of the company’s cloud development.

  Event: The company released the first quarter report of 2019 and achieved revenue of 12 in 19Q1.

52 ppm, an increase of 16 in ten years.

6%; of which non-financial cloud services income1.

25 ‰, an increase of 95% in ten years;

82 million, previously turned losses into profit; deduct non-net profit -0.

55 trillion, reducing losses by 51 a year.

2%; as of the end of the first quarter, accounts received in advance 11.

73 深圳丝袜会所 ppm, an increase of 27 in ten years.

8%.

  Cloud continues to grow at a high speed, and software growth exceeds expectations.

In the first quarter, UFIDA non-financial cloud services still maintained a high growth rate of nearly doubling and continued to strengthen the company’s performance elasticity; what greatly exceeded market expectations was that traditional software achieved 20 in the first quarter.

The previous growth rate of 6% is higher than last year’s highest level. The long-term market has always expected that the degree of traditional software breakthrough will be affected by the economic environment.

In fact, in addition to the decrease in software revenue for small and micro enterprises, UFIDA mainly benefited from the increase in large and medium-sized new enterprise customers and new applications in the first quarter. The software grew rapidly, reflecting the enthusiasm of digital information supplementation of internal domestic enterprises and UFIDA Software + Cloud +Comprehensive competitiveness of financial services.

In addition, the supplement of Internet investment and financing information service income also means that UFIDA Financial Services is rapidly improving its structure to reduce overall risk.

The company’s overall growth quality continues to improve in a better direction. Cloud continues to play an important role as a growth engine and complements traditional software. It also helps to eliminate the “right hand and left hand” savings that the market had long ago.

  Advance receipts continue to grow rapidly, and we are optimistic that cash flow will continue to improve.

The advance accounts of UFIDA non-financial cloud services have been relatively stable. We believe that the increase in advance accounts of 19Q1 companies is mainly driven by the growth of public cloud services. The acceleration of advance income growth also means the improvement of the quality of UFIDA development.

We continue to forecast the benefits of tracking advance receipts and operating net cash flow for tracking UF, and we are optimistic about the continuous improvement of the subsequent company’s cash flow to drive the increase in market value.

  ”Highly Recommended-A” investment rating.

It is estimated that the company’s net profit for the year 19-21 will be 8.

47/11.

31/14.

USD 8.6 billion, a scarce comprehensive cloud service leader, with great development advantages in ecological development. The most beneficial target for enterprise informatization upgrade is to maintain the “Highly Recommended-A” rating.

  Risk Warning: The progress of cloud service business is not up to expectations; the risk of brain drain.

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