Beijing Shiji Information Technology (SZ:002153) INDUSTRIAL SECURITIES·2024-05-20 01:31Investment Rating - The report maintains an "Add" rating for the company [1] Core Views - The company has signed a strategic agreement with Anlu Hotel Group to fully adopt its Shiji Enterprise Platform, enhancing management operations [3] - The new generation cloud products have gained market recognition, with significant clients like Peninsula, InterContinental, and Langham Hotels successfully implementing the platform [3] - The revenue from the hotel information management system has increased significantly, with a 30.09% year-on-year growth, contributing to an overall revenue of 2.749 billion yuan, a 5.93% increase [3] - The company has improved its cash flow, reporting a net cash flow from operating activities of 63 million yuan, compared to a negative 226 million yuan in the previous year [3] - The company’s SaaS business has accelerated, with a 24.62% year-on-year growth in annual recurring revenue (ARR) [4] - The company expects a net profit of 0.81 billion yuan in 2024, with projections of 1.41 billion yuan and 2.44 billion yuan for 2025 and 2026 respectively, maintaining the "Add" rating [4] Financial Summary - In 2023, the company reported a total revenue of 2.749 billion yuan, with a year-on-year growth of 5.93% [5] - The projected revenues for 2024, 2025, and 2026 are 3.302 billion yuan, 3.949 billion yuan, and 4.698 billion yuan respectively, with expected growth rates of 20.1%, 19.6%, and 19.0% [5] - The company’s net profit is projected to turn positive in 2024, with estimates of 0.81 billion yuan, 1.41 billion yuan, and 2.44 billion yuan for the following years [5] - The gross margin is expected to improve from 37.7% in 2023 to 40.9% by 2026 [5]