Qixin Group (002301): The performance is basically in line with expectations. The prospect of two-wheel drive is broad.

Qixin Group (002301): The performance is basically in line with expectations. The prospect of two-wheel drive is broad.
Event: The company released its 2018 annual report: In 2018, the company achieved operating income of 424,124.210,000 yuan, an increase of 33 over the same period last year.30%; realized operating profit of 18,185.670,000 yuan, an increase of 14 over the same period last year.06%, net profit attributable to shareholders of the listed company was 19,177.40,000 yuan, an increase of 36 over the same period last year.91%.  Opinion: The performance is basically in line with expectations, and the outstanding performance of office products business is basically in line with expectations.Reporting intermediates, the company’s office products business realized revenue22.杭州夜网论坛7 ‰, an increase of 91 in ten years.8%, the maximum performance is outstanding.Revenue from office equipment, Internet software and services respectively15.520,000 yuan, 3.5.2 billion, an annual increase of -3.52%, 2.61%, showing exceptionally robust performance.  The B2B office supplies business continued to develop, and Wujie Smart Office Retail steadily advanced the reporting period. The company continued to enrich its office supplies categories. Based on the reorganized office categories, MRO industrial products, labor insurance supplies, office leasing and other high value-added products,Can provide customers with 19 categories, 500,000+ commodities, to meet customers’ one-stop procurement and service needs.At the same time, the company horizontally established local subsidiaries to enhance the order service capabilities 杭州桑拿网 of key customers and improve the horizontal and vertical integration of a national key customer service network.In the end, the company continues to win more than 120 large government and enterprise customers including the State Grid, Bank of China, State Administration of Taxation, and Beijing Municipal Government.Together with JD.com, it has developed “Boundless Smart Office Retail”, which currently covers more than 40,000 JD convenience stores and JD.com homes, and its business has been steadily advancing.  Cloud video business has obvious advantages. Wisdom education and smart party building market are developing smoothly. In terms of cloud video business, the company gradually serves more than 60,000 customers. According to IDC statistics, Haoshitong has the largest market share in 2016-17 for two consecutive years.obvious.The report summarizes that the company increased its technical investment, updated 319 times in software client, server and other product line versions, and launched the professional intelligent hardware MeetingPlus, MeetingOne, and MeetingBox professional editions for individuals, medium and large enterprises, and small and medium enterprises.The company expands the development of education and the party building market: In terms of smart education, the company has established education and other industry market departments, and has formed five major content systems such as normalized recording and broadcasting.The report summarizes that the company’s education products have been gradually implemented in schools such as the kindergarten affiliated with the Longhua District Institute of Educational Science, Dongguan University of Technology, and North China Electric Power University, and the project has been implemented in Fuzhou, Guizhou, Guangxi and other places.The smart party building project has been advancing steadily, providing services for local party members in Hebei, Henan, Shandong, Guizhou, and some cities and counties in Heilongjiang Province.  Investment suggestion: Optimize the market prospect of the company’s large office platform and the development potential of cloud video conferencing.Considering the market development and paying attention to the penetration of strength, we have slightly lowered our profit forecast and set the company’s EPS in 2019/2020 from 0.50/0.65 yuan down to 0.47/0.62 yuan, maintaining the “overweight” level.  Risk warning: office materials demand is less than expected; cooperation with JD.com and Tencent Cloud is less than expected; cloud video business market development is less than expected.