Depth-Company-UFIDA (600588): Changes and Changes in Domestic Software Leaders in 20 Years

Depth * Company * UFIDA Network (600588): 20 years of domestic software leader changes

On a 20-year scale, UFIDA has maintained a high pace of industry growth, as a leading and model enterprise software, a fully existing replacement.

The industry has ushered in the historical opportunity of cloud and localization, and harvested another 6 for the company?
7 years of high growth opened the window.

Cloud services are at an inflection point, and the industrial and financial landscape is slowly opening.

Maintain BUY rating.

The main points of the support level are 20% CAGR in 20 years, and the software industry is a model.

The company is a domestic first-class enterprise that has grown with the growth of the Chinese software (especially enterprise software) industry. 2001?
In the past 20 years in 2018, it achieved a compound annual growth rate of more than 20% in revenue and a net profit CAGR of 14%.

In the field of ERP software, the company’s market share is about 1/3, ranking first; even depending on the income of the entire Chinese software industry, the company’s share has remained at 2?
5 ‰ level, and the growth rate remained highly consistent.

Therefore, the company is recognized as a recognized model enterprise in the software industry.

The double overlap of cloudization and localization facing the software industry.

Based on the characteristics of the model, the company’s investment logic is shaped by industry logic.

China’s software industry is in a period of overlapping historical opportunities: cloud and localization.

The former is a major trend in the global software industry, from the rise and verification abroad, to the domestic flowering and landing.

Singlely open the exclusive window for domestic enterprises-let alone basic software, and even in the high-end ERP field, 60% of the shares are replaced by overseas products, and the localization rate in chemical, life sciences and other fields is less than 10%.

The opening of the localization of Huawei’s industrial chain marks the opening of the ceiling.

The turning point of cloud transformation is fully realized, and the next round of high-growth 杭州夜网 growth is on the horizon.

Entering the phase of cloud revenue explosion by 2016: 2016?
In 2018, cloud service revenue increased by 34%, 250% and 108%, and 19H1 cloud revenue accounted for about 14% of the overall, which was at the inflection point of the curve.

According to the budget, with a CAGR of 20%, the company’s high-growth stage is expected to continue for another 6?
More than 7 years.

Estimated expected company 2019?
Net profit in 2020 is 8.

700 million, 11.

0 billion and 15.

100 million, corresponding to 0 EPS.

35 yuan, 0.

44 yuan and 0.

61 yuan (up 10% based on the high increase in cloud revenue).

Under the segment budget framework, there is still room for market value flexibility and we maintain a BUY rating.

Major risks facing rating industry decline; manufacturing boom surpasses expectations