CYTS (600138): Increase in unit price of tourist attractions to support performance and expect rebound in the background of low passenger flow

CYTS (600138): Increase in unit price of tourist attractions to support performance and expect rebound in the background of low passenger flow

Key points of the report The event describes the company’s release of the 2018 annual report and achieved operating income of 122.

65 ppm, an increase of 11 per year.

30%; net profit attributable to mother 5.

97 ppm, an increase of 4 per year.

50%; net profit after deduction to mother 4.

93 ppm, an increase of 14 per year.

40%; plan to pay 1 for every 10 shares.

40 yuan (including tax), the dividend rate reaches 16.

96%.

In terms of business reviews, according to the business review, in 2杭州夜网论坛018, the attractions business increased its revenue by increasing the unit price of customers, and other local businesses developed steadily: (1) In Wuzhen attractions, the passenger flow gradually increased after breaking through the expansion of 10 million, and the number of tourists 915 gradually increased.

30,000 person-times, a decrease of 9 per year.

71% of them, Dongzha receives 400 tourists.

990,000 person-times (-14.

48%), Xizha received 514 tourists.

40,000 person-times (-5.

61%); although passenger flow has decreased, the unit price of Wuzhen has increased by more than 28.

20%, reaching 208.

16 yuan, leading Wuzhen to initially achieve 19 revenue.

0.5 billion (+15.

74%); realized net profit attributable to mother 7.

3.4 billion (+5.

98%); (2) Gubei Water Town, receiving 256 tourists for a long time due to summer floods and other factors.

490,000 person-times (-6.

8%), despite the decrease in passenger traffic, Gubei has increased the unit price by increasing the reception capacity, increasing the consumption scene of attractions, and tapping the potential for tourists ‘consumption.
.

48% reached 389.

20 yuan, leading Gubei Water Town to achieve an initial income9.

9.8 billion (+1.

98%); budget, affected by the increase in investment income of real estate companies participating in equity, realizing net profit attributable to mothers3.

0.8 billion (+169.

84%).

(3) In other sectors, tourism products achieved revenue of 39.

0.9 billion (+3.

52%), IT product sales and technical services33.

2.3 billion (+10.

54%), integrated marketing 25.

6.2 billion (+24.

25%), the hotel industry 4.
9.2 billion (+13.
84%), real estate sales 2.

0.6 billion (+307.

twenty two%).

In terms of profitability, the company’s comprehensive gross profit margin in 2018 was 25.

30%, ten years zero.

15 points, sales expense ratio, management expense ratio, R & D expense ratio and financial expense ratio are -0 respectively.

55 points, -0.

33pct, +0.

02 points, +0.

15pct, for a total rate of -0 per second during the period.

71pct, but is subject to other gains (mainly government subsidies) which decrease by about 0 per year.

The impact of 6.6 billion, the net interest rate for a decade of -0.

35 points.

Underestimating the scarcity of leisure attractions, the investment value is prominent.

The growth of Wuzhen and Gubei with diversified profit models is expected to continue. The expansion of the second phase of Wuzhen Internet International Convention and Exhibition Center will open up the space for scenic spots performance; the hotel business is improving, and the “travel +” strategic layout will bring new profit growth points.

In the short term, it is expected to continue to repair; in the medium term, it will improve. After the shareholder changes, Everbright Group will take the lead and look forward to management improvement, strategy improvement, and performance improvement. In the long term, the company, as one of the system providers of quality life, has broad development space.

EPS is expected to be 0 in 2019-2021.

94, 1.

11 and 1.

35 yuan, corresponding to the current sustainable PE of 18, 15, and 13 times. Maintain “Buy” rating.

Risk Warning: 1.

After the company’s major shareholders transferred Everbright Group, the merger and coordination progress did not meet expectations;

The business of the scenic area was affected by uncontrollable factors such as weather and natural disasters, and its operating performance was not up to expectations.