Main points of investment
Event: 2280.HK Group (Huicong) announced its results for the fourth quarter and the whole year of 2018 on March 26: total sales revenue in 2018 reached 10.583 billion in 2018, a sharp increase of 185.8% compared with the same period last year, compared with 3.702 billion yuan in the same period last year. The profit attributable to equity holders of the company was about 276 million yuan, compared with about 268 million yuan in the same period last year, an increase of about 2.9 percent. The company's EBITDA is about 641 million yuan, compared with 653 million yuan in the same period last year. Diluted earnings per share were 0.2458 yuan in 2018, compared with 0.2559 yuan last year. The Board does not recommend the payment of any final dividend for the year ended 31 December 2018.
The performance bet was successfully completed. The group's after-tax profit reached 17.61 million yuan in 2018, more than 1690 million yuan 4.2%, and Huijia's 2018 after-tax profit reached 27.59 million yuan, more than 2600 million yuan 6.6%, all completed the performance bet.
The company has adjusted its revenue segment from 1) Internet services in 2017; 2) conferences and other services; 3) O2O business exhibition center; 4) B2B trading platform; 5) security products and services; 6) financial services, six major business sectors, adjust to 1) new technology retail business group; 2) smart industry business group; 3) platform and enterprise service enterprise group 4) O2O commercial exhibition center service group, four major business groups. The division of business is clearer, and the business is expected to be more collaborative in the future.
Zhongguancun online is the core asset of the company's new technology retail business group, which affects more than 30 million purchasing users every day and has a solid leading position. In 2018, the new technology retail business group averaged more than 30 million technology product purchasing users per day, linking more than 7000 SaaS-paying retailers. Zhongguancun online is the core asset of the enterprise group, which has great influence in the domestic 3C field and has great growth potential in the future.
The revenue of the Internet, a transformational industry, is expected to reach 20 billion in 2019. The company will focus on the industrial Internet in 2019. Zhongguancun and Zhongguancun are expected to continue to drive the company's growth. Huicong and Zhaoxin will become two-stage rockets for the company's development in 2019. Future growth is worth looking forward to.
Risk hints: macroeconomic downside risks, increased industry competition, less-than-expected business progress, goodwill impairment risk