UFIDA (600588) Tracks Reviews-Comprehensive Cloudization Promotes Benchmarking Case Continues

UFIDA (600588) Tracks Reviews-Comprehensive Cloudization Promotes Benchmarking Case Continues

The company’s cloud demand has risen in an all-round way. As a leader in the domestic cloud ERP field, the company has ushered in a period of strategic opportunities for major customers.

Starting from the end, the comprehensive cloud-based strategy is advanced, and benchmarking cases continue to decline. The healthy growth of performance will drive the company’s overall fundamental expectations + estimation system to improve.

Give a target price of 52 yuan, corresponding to a market value of 130.2 billion US dollars, maintain the EPS forecast of 0.

45/0.

46/0.

52 yuan, maintain “Buy” rating.

Matters: Recently, the company’s official micro-announcement announced a strategic cooperation with BMW, which will help BMW to create a new digital intelligent marketing service system, including sales management, after-sales management, financial accounting, system integration, cloud services and other digital marketing modules.

The three major expectation gaps are gradually being recognized by the market. The wave of overlapping of “digitalization, cloudification, and localization” has driven the company’s overall fundamental expectation + estimation system to improve.

We have continued to develop in the company’s evaluation report “Complete Cloudization Beginning with the End” on February 4 and recent monthly views. The market’s perception of the company will be gradually repaired: 1. The market is gradually realizing that this round of isolated office bringsThe massive demand for cloud-based office work will not only advance the popularity of basic enterprise-level cloud office applications such as IM / video conferencing / documentation / sign-in /, but also further accelerate the formation of customer habits for internal overall enterprise-level cloud-based applications, significantly improving the coreThe application (ERP / CRM / HR / OA) cloud speed and intent to respond to the new, efficient work collaboration methods required by the informatization support, its substance and impact is no less than a vigorous industrial policy support;Gradually realized that UFIDA’s 30-year deep cultivation of the ERP market has become a leader’s accumulated quality channel resources, and to accompany the quality customers to meet the challenges of reducing costs, increasing efficiency, and replacing management challenges.

And this strong and powerful wave of “digitalization, cloudification, and localization” this year and later has been fully reflected through benchmark customer cases such as BMW, and has helped the market deepen its understanding of the company’s competitiveness.

3. The market is gradually recognizing that the company’s determination to comprehensively promote cloudification starts with the end and bring about competition after the core cloud products continue to be polished. In the business structure, cloud revenue continues to grow rapidly, and the valuation system brought by high proportions,The overall change in company value.

Reached a cooperation with BMW, UFIDA set a benchmark for quality customers on the right.

On February 10, it announced that it has reached a cooperation with BMW to create a new digital intelligent marketing service system to provide BMW and its more than 700 dealer outlets with more comprehensive information technology support in the Chinese market.

BMW is currently China’s top-selling high-end car manufacturer. Its marketing management system is one of BMW’s most important systems. UFIDA initiated a partnership with BMW to create a new 南京桑拿网 generation of solutions for BMW and interface with other BMW systems through a microservice model., Serving BMW’s nearly 700 dealer outlets in mainland China, is expected to support BMW’s marketing management in China for the next ten years.

This cooperation will gradually continue to help the company’s cloud business development, and will gradually further enhance the brand effect of UFIDA among large foreign and Chinese large enterprise customers.

The domestic ERP market is welcoming a period of strategic opportunities for key customers, the urgency of cloudization has improved, the end-user cloud office habits have been developed, and benchmarking cases have continued to decline, which will work together to accelerate the company’s comprehensive cloudization process from the end.

In “Computer Cloud Computing Industry Tracking Review-Cloud ERP Ushers in a Major Customer Strategic Opportunity Period” (2019-10-31), we predict that ERP will be a business that grows with customers. Internal challenges will overlap with the upgrading of office collaboration. Domestic cloudERP has ushered in a period of strategic customer development.

Digitalization, cloudification, and localization transformation are important paths for large enterprises to meet the challenges of reducing costs and increasing efficiency, information security, and management upgrades. They have transformed their awareness and practice of core management application cloudification in the emerging epidemic.The cloudization process of large enterprises is expected to accelerate, and benchmarking cases continue to accelerate the company’s full cloudification.

Risk factors: The release of demand from large enterprises is less than expected, and localization progress is too slow.

Investment suggestion: The company’s cloud requirements will be strengthened in an all-round way. As a leader in the domestic cloud ERP field, the company will usher in a period of strategic opportunities for major customers.

Starting from the end, the comprehensive cloud-based strategy is advanced, and benchmarking cases continue to decline. The healthy growth of performance will drive the company’s overall fundamental expectations + estimation system to improve.

Maintain the company’s 2019-2021 net profit forecast11.

38/11.

42/13.

2.0 billion (of which non-recurring profit and loss in 2019?
500 million), revenue forecast 90.

04/108.

40/128.

850,000 yuan, corresponding to EPS 0.

45/0.

46/0.

52 yuan.

Taking into account the industry’s prosperity and the company’s market size, benchmarking cases continue to decline, comparable to the average level of cloud companies (?
13x 20PS), conservatively giving the company a target price of 52.

00 yuan, corresponding to 20 years 12x PS, target market value of 13.02 million yuan, maintain “Buy” rating.