Yunsai Zhilian (600602) 2018 Annual Report Comments: Operating Cash Flow and Cloud Services Continue High Growth


Yunsai Zhilian (600602) 2018 Annual Report Comments: 南京桑拿网 Operating Cash Flow and Cloud Services Continue High Growth

Core point of view The company achieved revenue / operating profit / net profit44.

66/3.

19/2.

99 ‰, +5 for ten years.

76% /-4.

00% /-2.

02%.

In 2018, the company’s cloud computing / big data business increased rapidly, operating cash flow turned positive, and investment income dragged down profits; Cigna Times / Yinxin Xinsen actually exceeded its performance commitments, and the growth momentum of cloud services continued to develop.

Optimistic about the company’s smart city ecological layout, and raised its EPS forecast for 2019/2020 to 0.

22/0.

23 yuan (original value 0.

18/0.

19 yuan) and add 2021 EPS forecast to 0.

24 yuan, the current expected corresponding PE is 38/36/35 times respectively, maintaining the “overweight” level.

佛山桑拿网 Cloud computing / big data business grew rapidly, and operating cash flow turned positive.

The company’s cloud computing / big data business grew rapidly in 201830.

85%, hedging the scale of traditional business, revenue growth is slightly faster than in 2017; due to business structure adjustment and classified management, gross profit margin rose slightly.

15pct, sales / management (except R & D) / financial expenses decreased by 0.

2/0.

1/0.

4pct, but the R & D expense rate goes up by 0.

9pct and 40% reduction in investment income.

66%, resulting in slight fluctuations in profits.

In terms of quarters, the fourth quarter revenue / net profit increased sequentially, operating cash flow turned positive, and operating cash flow was gradually realized.

9.3 billion.

Cigna Times / Yinxin Xinsen has achieved its performance commitments, and the momentum of cloud service growth has continued.

In 2017, the company acquired all the shares of Cigna Times / Yindian Xinsen, and cooperated with its subsidiary Nanyang Wanbang to lay out national cloud services.

At present, all of them have exceeded their performance commitments.

In 2018, the company obtained a cloud service license and Microsoft Azure Expert MSP / CMMI Level 3 / dual software enterprise certification, signed a strategic cooperation agreement with Alibaba Cloud, and won multiple government cloud and software projects.

In 2019, it is expected to continue to increase IDC investment, promote the implementation of multi-government government cloud projects and the research and development of public cloud management platforms, and the momentum of growth will continue.

Strengthen research and development and strengthen cooperation to build a smart city ecosystem.

According to Deloitte’s Super Smart City Report, 1,000 smart cities have been launched or under construction worldwide, and 500 in China.

In 2017, the annual smart city IT investment scale was 3752 trillion, and it is expected to be 12341 trillion in 2021, with a CAGR of about 35%.

The company is positioned as a “smart city comprehensive solution provider”, has cross-industry experience in government affairs / education / security inspection / airports / nuclear power and IDC computer rooms, and works closely with mainstream cloud vendors.

300 million R & D expenditures in 2018 (accounting for 6 revenues.

75%), 1134 R & D personnel (accounting for nearly 50%), established a smart city expert committee, and carried out related business cooperation with VMWare / Huawei / Hikvision / Queshi Technology, etc., to fully build a “Smart City” strategic ecologyIt is expected to become a strong support for the company’s future growth.

Risk factors: Cloud computing / big data / smart city advances less than expected, and the risk of goodwill impairment.

Investment suggestion: In 2018, the company’s cloud service business continued to grow rapidly. Cigna Times / Yinxin Xinsen overfulfilled its performance commitments. Operating cash flow was positive, and non-net profit could be slightly increased.We are optimistic about the company’s smart city ecological layout and raised its EPS forecast for 2019/2020 to 0.

22/0.

23 yuan (original value 0.

18/0.

19 yuan) and add 2021 EPS forecast to 0.

24 yuan, the current expected corresponding PE is 38/36/35 times respectively, maintaining the “overweight” level.