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Shiji Information released its 2024 semi-annual report. In the first half of 2024, the company achieved revenue of 1.382 billion yuan, up 15.09% year on year; net profit to mother was 0.025 billion yuan, up 10.83% year on year; net profit after deducting non-return to mother was 0.02 billion yuan, up 16.40% year on year; gross margin was 46.06%, down 3.43 pct year on year. In the second quarter of 2024, the company achieved revenue of 0.75 billion yuan, up 17.31% year on year; net profit to mother was 0.013 billion yuan, up 10.71% year on year; net profit after deducting non-return to mother was 0.009 billion yuan, up 9.63% year on year; gross margin was 43.32%, down 4.82 pct year on year.

The global business achieved a series of milestones

Cloud Catering System Infrasys Cloud, as the only cloud catering management system that has signed contracts with all of the top five global hotel groups, is continuing to sign and launch more and more international hotel groups and social restaurants, with a total of 3955 customers at the end of the first half of 2024; the next-generation cloud-based enterprise hotel information system product Shiji Enterprise Platform was newly signed as the benchmark customer, Melco Hotels Group, and is continuously expanding its launch in hotel groups such as Peninsula, Intercontinental, and Langham. A total of 433 hotels were launched at the end of the first half of 2024.

Accelerate the transformation to a SaaS operating model and increase ARR

In terms of platform-based business, the total transaction amount of the company's customers directly connected to Alipay and WeChat in the first half of 2024 was about 151.4 billion yuan, a year-on-year decrease of about 1.9%; the output of the reservation platform in the first half of 2024 was 11.68 million overnight, a sharp increase of 32.7% over the previous year. In terms of SaaS business, the SaaS business annual recurring subscription fee (ARR) was 0.447 billion yuan at the end of June 2024, an increase of about 30.8% year-on-year. At the end of the first half of 2024, the total number of SaaS business enterprise customer (end user) stores exceeded 0.08 million hotels, with an average renewal rate of over 90%.

Investment advice

We expect the company's revenue for 2024-2026 to be 3.174/3.81/4.677 billion yuan, respectively, with year-on-year growth rates of 15.46%/20.01%/22.76%, and net profit to mother of 0.059/0.13/0.231 billion yuan, respectively. The year-on-year growth rates are loss to profit/ 118.82%/78.07%, and EPS 0.02/0.05/0.08 yuan/share, respectively. In view of the company's leading position in information technology markets such as hotels, restaurants, retail and leisure and entertainment industries, accelerating the transformation to a SaaS operating model is expected to benefit from the recovery and upgrading of the major consumer industries, it is recommended to continue to pay attention.

Risk warning: technology and product development risks, market and policy risks, overseas investment risks, management risks.