Events: 263 released a quarterly report, the company's revenue in the first quarter was 262 million, up 31.0% from the same period last year; its net profit was 36.925 million, up nearly 1.7% from the same period last year; after deducting 34.688 million, it increased by 2.1% over the same period last year, and its performance exceeded expectations. In addition, the company expects to achieve a net profit of 64.131 million yuan to 76.156 million yuan in the first half of 2019, an increase of 60% and 90% over the same period last year.
Since the beginning of 2019, the company's income has increased steadily, while the growth of net profit has accelerated significantly, mainly due to the increase in revenue from ○ 1 Shanghai Nesheng IDC one-time services; ○ 2 was merged into Risheng Technology and I-Access International Private Network business in 2019; the self-research software confirmed by ○ 3 when it acquired exhibition technology was amortized in 2018; and the parent company of ○ 4 recognized deferred income tax assets of 9.734 million yuan according to future profit estimates.
The two major pain points of video conferencing call for technological innovation. It is an inevitable trend for enterprise unified communication to move from voice to video in the future. however, the current development of video conference still faces two "stumbling blocks": 1 restricted by network bandwidth, the picture is not clear, the call is interfered, and the communication experience is poor. (2) for the sake of protecting their own interests, the existing unified communication hardware manufacturers have limited support for cross-platform connections of different brands and different types of terminals, and there are obstacles to interconnection, so they are unable to achieve efficient communication.
5G + cloud computing hits the point, clearing the way for video conferencing. The development of 5G has greatly improved the core indicators of mobile network, such as bandwidth, delay, reliability and the number of connections. at the same time, the cooperative competition between mobile fixed networks will also promote the continuous optimization and improvement of fixed network broadband. The completion of technical conditions will strongly support video communication anytime and anywhere, and will significantly improve the effect of video conferencing. Therefore, 5G will hit the first pain point of video conferencing and create a video era.
The video cloud platform based on cloud computing technology will no longer be subject to geography and brand. The video cloud has excellent compatibility, can use open protocols to realize the interconnection and interconnection of almost all brand terminals, and can contribute to video transmission, optimization, codec, and effectively lower the local hardware threshold and improve the quality of experience by relying on the powerful computing power of the cloud. The future video cloud is expected to lead video communications to a unified era of convergence.
263 aim at "video +" to create China's "Zoom". 263 is one of the top five domestic enterprise mailbox service providers, providing enterprise mailbox services for 130000 + enterprises and 6 million + enterprise users, laying a solid user foundation.
263 on the one hand around the video cloud to achieve extensive interoperability of different brands of equipment, on the other hand, efficient integration of 263 teleconference, webcast and other services to create "video +".
Exhibition interaction ranks first in the live broadcast of domestic enterprises, serving more than 1000 large and medium-sized enterprises and well-known education and training institutions around the world, with a good brand appeal. In the future, 263 will actively create video plus live streaming, increase the layout of the education industry, and achieve the extension and coordination of superior industries.
Capital online, Zhiyuan Interconnection is proposed to be listed, 263 equity investment is expected to significantly increase performance. According to the announcement: ① IDC service provider Capital online application for listing on gem has been accepted, if the successful listing, 263 equity appreciation is expected to reach 60 million yuan. ② collaborative management software leader Zhiyuan Interconnection Application Co., Ltd. has also been accepted for listing on the board. After the successful listing, the equity appreciation of 263 can reach 130 million yuan.
Earnings Forecast and valuation: forecast net profit in 2019-2021 is 163 million, 212 million, 277 million, corresponding to the current market capitalization (April 23, 2019), PE is 43 times, 33 times, 25 times, maintaining the "prudent overweight" rating.
Risk tips: 1, the Internet giant cut into video cloud communications, resulting in a sharp increase in the pressure of competition in the industry; 2, the scale of goodwill is large, and the poor management of some subsidiaries leads to the impairment of goodwill; 3. Domestic operators strengthen their internationalization strategy, resulting in pressure on international dedicated line business.