Shiji Information (002153): Internationalization + platformization continue to promote steady growth in performance

Shiji Information (002153): Internationalization + platformization continue to promote steady growth in performance
Event: The company released the third quarter report of 2019, and the first three quarters realized revenue24.3.7 billion, an annual increase of 22.43%; net profit attributable to mothers3.2.2 billion, an annual increase of 1.83%; deduct non-net profit 3.1.3 billion, an annual increase of 6.66%. The performance has grown steadily, and the period of transition and expansion has affected profit performance.Third quarter company revenue 9.2 billion, an annual increase of 25.27%; net profit attributable to mother 1.1.3 billion, an annual increase of 1.29%; deduct non-net profit 1.100 million, an increase of 5.71%.In terms of expenses, due to the company’s transitional business expansion period and the consolidation of Hisense Smart, expenses performance improved in the third quarter and the sales expense ratio continued to increase1.33 points to 10.90%, the R & D expense rate increased in ten years.96 points to 9.66%, the management expense rate increased by 0 in ten years.97 points to 19.59%.We believe that the company’s overseas business is in a period of rapid expansion. Faced with the continued expansion of cloud PMS and POS and other product research and development, pressure from overseas channel expansion and personnel recruitment is a necessary transition stage. With the company’s SaaS business scale, profit performance will steadily rebound. Internationalization accelerated, and cloud POS achieved a breakthrough.In 2019, the company continued to expand its spending overseas. Shiji United States successively acquired 60% equity of Touchpeak and 100% equity of ICE Portal; Shiji Singapore acquired 100% equity of quick check.At the same time, relying on the technical strength in the field of cloud POS, the company successfully entered the peninsula in the selection of cloud hotel software by international hotel groups. Hyatt, Intercontinental, Marco Polo and other top hotel technology standards. In the first half of the year, the number of cloud POS hotels + catering customers has exceeded 1,000.We believe that hotel cloudification is an inevitable direction for the development of the industry. The breakthrough of the 重庆耍耍网 company’s scale through the extension of accumulation technology and channels into the cloud POS can build a good reputation for the company in the hotel group and lay a solid foundation for future cloud PMS penetration. The platformization strategy continued to advance, and the direct connection business continued to grow.The company relies on the advantageous areas of the hotel, catering and retail industries to open up information systems and customer booking channels.At present, there are more than 150 internal channels in the hotel industry, with direct-connected output of more than 4.1 million nights. At the same time, the total payment business transactions exceed $ 73.5 billion. The company’s booking and payment platforms have maintained rapid growth. Profit forecast: The company’s operating income is expected to be 38-20 in 2019-2021.4/46.1/53.0 million yuan, the budget income is 0.45/0.53/0.60 yuan, corresponding to PE is 86/74/65 times, given “overweight” rating. Risk Warning: The expansion of overseas business is less than expected; competition in the industry is intensifying.