Emeishan A (000888): Reform of fee control continued to make breakthroughs in extension
I. Overview of the event The company released its semi-annual report for 2019: Realizing revenue5.
3 trillion, an increase of 0 in ten years.
8%; net profit attributable to mother is 0.
800 million, an increase of 10 in ten years.
1%; net profit after deduction is 0.
7 trillion, an increase of 5 in ten years.
Second, analyze and judge that the passenger flow is stable, and the ticket revenue is least affected by the policy. The cableway welcomes the increase of 160 people in the company’s scenic spots in the first half of the year, which increases slightly by 0 each time.
1%, but ticket income is affected by price reductions, achieving income 2.
2 ‰ /-7%, the per capita budget is downgraded by 7% quarterly, resulting in a 6% decrease in gross profit margin of the ticket business.
The ropeway business was affected by the suspension and upgrading of the 10,000-year-old ropeway in the first quarter of last year. This year has ushered in a low-base recovery. The whole mountain ropeway transformed and transported 323 tourists.
70,000 person-times, realizing income from ropeway1.
800 million / + 22.
6%, gross margin is affected by increasing depreciation, alternating 3.
7pct; Hotel and other business income decreased by 6.
2%, the gross margin decreases by a constant of 5.
Internal reforms have continued to advance, and costs have been improved to a minimum. Since Chairman Wang Dong took office in April 2017, the company has continuously improved its governance and organizational structure to streamline and strengthen cost control. In the past two years, sales and management costs have been continuously optimized.
In the first half of the year, the company’s sales expenses decreased by at least 22% to 5.41 million yuan, of which advertising costs, leasing, and other expenses were greatly reduced, which led to a decrease in sales expense ratio of 0.
5 points; every 6 points in management expenses.
From 7% to 36.84 million yuan, the management expense ratio also decreased by 2.
7pct, the continuous effect of the reform is significant.
The proposed increase in capital “Only Mount Emei” officially cuts into the tourism performing arts company. Although the company has a famous mountain resource, it avoids environmental protection pressure on the mountain, has limited space for operation, has a single income structure, and the ticket + cableway income accounts for over 70%.
In addition, the progress of the tourism 杭州桑拿网 performing arts projects scheduled to increase investment in 2013 is also lower than expected, with operational changes and relatively insufficient space.
IPO announcement, it is planned to use the fixed increase project in 2013 to invest in the construction of the Emeishan Tourism and Cultural Center project1.
2.1 billion funds were changed to increase the capital and share of Emeishan Yunshang Tourism Investment Company.
After the capital increase and share expansion, the company will hold 40% of the equity of Yunshang Tourism. The tourism investment airlines controlled by Sichuan Tourism Investment Group and the company’s associated legal entity E Tourism Investment Group will hold 34% and 26% of the shares respectively.
In terms of governance structure, the company’s discourse weight on cloud tourism.
Among them, the board of directors consists of 6 members, of which 3 were appointed by the company, 2 were nominated by Lutou Aviation, the chairman was appointed by the company, and the board was elected.
Emeishan Yunshang Tourism Investment Company is the main body of the pre-construction construction and operation of the “Only Emeishan” cultural performing arts project. This project was created by the famous director Wang Chaoge and the project covers an area of about 7.
80,000 square meters, the indoor theater has 6 viewing spaces, the real scene village theater completely retains 26 courtyards, the entire project daily maximum amount of visitors can reach.
50,000 people, the first performance is expected in September this year.
According to company estimates, the annual average operating income of the project after its maturity period is expected to be nearly 200 million yuan, with an average annual net profit of 49.68 million yuan and a net profit margin of approximately 24.
9%, according to the company’s 40% shareholding ratio, it is estimated that the average annual contribution to the mother’s net profit will be nearly 20 million yuan, which is equivalent to thickening the mother’s net profit to 10% in 2018.
Third, investment proposals are affected by the price reduction of tickets and the relatively single business structure. The company’s revenue and profit growth have been significantly significant in the past two years.
This increase in capital and share expansion into the tourism performing arts market will become the overall driving force for the company ‘s traditional prospects, thicken the company ‘s performance, and the transformation also shows its determination to forge ahead. It can still be expected to integrate regional tourism resources in the future.
It is expected that the company’s EPS for 2019-2021 will be 0.46, 0.
55, corresponding PE is 13X, 11X, 11X, maintaining the “recommended” level.
Fourth, risk reminder: the performance of the performing arts project is less than expected; the risk of price reductions for tickets and ropeway tickets; force majeure such as natural disasters.