Shiji Information (002153): Consolidated Hisense Intelligent Commercial Continues to Strengthen R & D and Promotion
Event: The company released its semi-annual report for 2019, which reported an operating income of 15.16 ppm, an increase of 20 in ten years.76%; net profit attributable to mother 2.08 million yuan, an increase of two in ten years.12%; net profit after excluding non-recurring gains and losses.30,000 yuan, an increase of 7 in ten years.18%. The growth of main business was stable, and Hisense’s intelligent business contributed 1.US $ 9.6 billion: The number of reports shows that the company’s overall revenue growth rate is good, of which the hotel information system, commercial circulation management system and third-party hardware supporting services, which account for the largest proportion, achieved revenue4.8.2 billion, 2.31 ppm and 5.02 trillion, an increase of 10.07%, 10.64% and -1.05%.In February 2019, the subsidiary Shiji Commercial 杭州夜生活网 completed the acquisition of Hisense Smart Commercial57.75% of the shares held a total of 82.75% equity.In the first half of the year, the autonomous intelligent business equipment business composed of Hisense Intelligent Business contributed revenue.After excluding the impact of mergers and acquisitions, the company’s organic revenue growth rate was 5 in the first half of the year.10%. Overseas business income is growing rapidly every year, and MRR continues to increase: two are reported, and the company’s overseas business has achieved revenue1.63 ppm, an increase of 79 in ten years.78%.The main components of the company’s overseas business are innovative cloud services such as Infrasys Cloud, Snapshot, and Shiji Germany. The continuous growth of revenue means that the company’s cloud business is in the rising stage.In June 2019, the company’s SAAS business realized a monthly repeatable subscription fee (MRR) of 1981.09 million yuan, ranking 905 in the same period last year.430,000 yuan increased by 118.8%, compared with 1705 at the end of last year.250,000 yuan, an increase of 16.17%. Continue to strengthen R & D investment and accelerate the launch of new products: report integration, the company’s total R & D investment is 2.53 ppm, an increase of 51 in ten years.44%.The company continues to strengthen overseas independent R & D investment to promote the accelerated launch of a new generation of hotel information systems.The huge global hotel market has led to the fragmentation of the traditional hotel information market share, and a new wave of cloud-based system replacements is coming. The systematic replacement of hotels by the entire hotel group will rapidly increase the industry concentration.More importantly, the new generation of cloud-based hotel system market is still in the stage of product maturity and landing. The first-mover advantage will determine the composition of the new industry structure.The company continues to vigorously develop R & D to promote the accelerated landing of its products, so as to provide a driving force for the early realization of the strategy. Investment suggestion: The company will take the hotel information system cloudification and business internationalization as its current main directions to accelerate the transformation and upgrade of its own business model.In addition, the company actively expands the new retail sector, and while deepening its own product penetration in the vertical of catering and retail, it has joined hands with Ali Qiangqiang to achieve complementary products and channels.We expect the EPS for 2019-2020 to be 0 respectively.50, 0.63 yuan, “Buy-A” investment rating, 6-month target price of 38 yuan. Risk reminder: The advancement of new services such as cloud PMS is less than expected; there is uncertainty risk in the progress of cooperation with Internet companies.