UFIDA (600588): Taking the Three Waves of Dongfeng on the Clouds of the Enterprise to Overlap

UFIDA (600588): Taking the Three Waves of Dongfeng on the Clouds of the Enterprise to Overlap

Opinion focus on maintaining outperforming industry investment recommendations UFIDA is a leader in the enterprise software service industry. In 2018, it ranked first in the domestic ERP industry market share.

At present, domestic enterprises are actively embracing cloud transformation. The digital upgrade of UFIDA’s companies, and the localization and internationalization of the three major trends are superimposed. We believe that UFIDA’s business is growing fast, with large space and stamina. It is expected to become the leading enterprise cloud service industry in the future.

  Reasons The trend of corporate digital transformation is trending, and Sanlang overlap provides historic changes for UFIDA: 1) the concept of internal cloud services has changed people’s hearts, and the demand for enterprise cloud transformation has been strong; 2) the international trend has changed, and the trend of Xinchuang 北京桑拿洗浴保健 work has brought development opportunities for internal manufacturers; 3) Domestic enterprises are going overseas, bringing software internationalization needs.

  Veteran in the field of enterprise management software, eliminating user base transformation and deepening cultivation: U8, U9 and NC series product lines released by UFIDA rank in the forefront in the Asia-Pacific region. Relying on years of technology accumulation and market experience in the software industry, UFIDA’s cloud businessThe transition is going smoothly.

  R & D emerged from the cloud and developed new products with a hundred flowers: UFIDA started from the iUAP cloud platform and built core SaaS service products based on PaaS services. For large enterprises, the industry’s ability to refine management is leading.

With the company’s next-generation cloud 淡水桑拿网 ERP product, NC Cloud, YonSuite has strongly entered the market. We are optimistic that its cloud revenue will continue to double in the next two years.

  The team is young, with high goals and high motivation.

The company insists on UF3.

0 strategy, focus on corporate services, strong internal consensus and encourage corporate vitality through cadre rejuvenation and incentive plans, and strive to “rebuild a UFIDA in three years”.

  UFIDA vs.

Kingdee: Utilizing product features, volume advantages and continuous R & D expansion, we believe that UFIDA has formed a competitive advantage in the medium and large enterprise market. We are optimistic about UFIDA’s development prospects.

  Earnings forecasts and estimates have been revised down from 2019 by 11% to 9.

02 ppm, keeping the profit forecast for 2020 basically unchanged, mainly considering the company’s vigorous promotion, and accumulating power for the next decade.

The revenue forecast for 2021 is USD 13.1 billion, a 22% increase, and the profit forecast for 2021 is 17 trillion, a 35% increase. We maintain our outperform industry rating and a target price of 38 yuan. According to the 2020 segment and total valuation method, corresponding toThe 21x 77x / 57x P / E ratio is 19% more upside than currently expected.

The current contradiction corresponds to a 64x / 47x price-earnings ratio in 2020/21.

  Risk Macroeconomic Weakness; New Product Uncertainty; R & D Expenditure Exceeds Expectations