The non-net loss deducted by the company continued to expand in the first half of the year, and the investment income increased significantly.
The results in the first half of the year were in line with expectations: during the reporting period, the company achieved operating income of 361 million yuan, an increase of 17.05% over the same period last year; the net profit belonging to shareholders of listed companies was 3.7075 million yuan, a reverse increase of 142.73%, mainly due to the increase in financial income and investment income of the company. 20.2162 million yuan in investment income. After deducting non-return, the net profit was-11.877 million yuan, and the net loss increased by 9.98%. The company's overall gross profit margin fell 0.56pp to 6.16% compared with last year, and the expense rate increased by 0.21pp to 9.88% during the period: mainly due to the increase in loan interest expenses, the financial expense rate increased by 1.70pp to 1.60%; the decline in staff salaries and advertising expenses reduced the management expense rate by 1.08pp to 3.92%.
Travel agencies receive more people and increase revenue, and the change of hotel management model is expected to reverse losses.
In terms of business, the company's travel agency revenue in the first half of the year was 324 million yuan, an increase of 22.93% over the same period last year, accounting for 89.69% of the total income (85.69% in the same period last year), mainly due to an increase of 16.11% in reception, a total of 107666, and a gross profit margin of 2.30%. Among them, domestic travel, outbound travel and inbound tourism increased by 31.70%, 35.93% and-30.51% respectively.
In the hotel industry, the company's guest room income was 11.6178 million yuan, down 23.04% from the same period last year; guest room gross profit margin was 3.37%, down 13pp from last year, mainly due to the increase in cost rate caused by the decline in income, including 27.19% labor cost rate and 36.49% depreciation rate of fixed assets. The hotel received a total of 149763 people in the first half of the year, a decrease of 10.35%, of which the proportion of group guests increased by 5.56pp to 55.08%. The company decided to rent out the New Guanghua Hotel and the Northwest Hotel, which is expected to reverse the situation that the main business of the hotel has lost money for many years.
The traditional main business is under pressure to be transformed, and it is proposed to acquire three banks to inject advertising business.
In the first half of the year, the company signed a cooperation framework agreement with Hangzhou Saishi Garden Group Co., Ltd., planning to invest 150 million yuan to develop leisure theme tourism; Xi'an overseas tourism, a wholly-owned subsidiary, and four natural shareholders invested in the establishment of Xi'an Donkey Mother International Travel Service Co., Ltd., to promote the integration of the Internet and the company's tourism business. In the current situation of increasing losses in the main business of travel agencies, the company tries to transform and upgrade. In July 16, the company announced that it planned to acquire the "three-person bank" and enter the media field. Sanren Bank listed the new third board in April of 15 years, mainly engaged in campus all-media advertising business, campus public relations activity service business and Internet product development and technical services, with resource advantages in campus marketing. The company promises to deduct the non-return net profit of not less than 80 million yuan, 100 million yuan and 125 million yuan in 16-18 years, which is expected to increase the profit after the acquisition and is expected to have a synergistic effect with the tourism business. At the same time, the acquisition company introduced private capital, which will improve the future operation of the company.
The company has a low market capitalization, has the expectation of state-owned enterprise reform, and maintains the "overweight" rating.
The acquisition has yet to be approved by SASAC, shareholders' meeting and China Securities Regulatory Commission, regardless of the thickening of the performance. It is predicted that on 16-17-18, the annual EPS will be 0.01pm 0.07yuan, and the corresponding PE will be 1500.80max 320.86max 208.01times. Due to the uncertainty of the acquisition time, it is assumed that the three banks merged for 17 years, and the promised performance in that year was 100 million yuan. Based on the 17-year average valuation of Huatai media industry, it was given 30-35 times PE, corresponding to a market capitalization of 3-3.5 billion yuan. The company's hotel business is the main source of profit, with an estimated net assets of 821 million yuan in 17 years. According to the average value of the hotel industry, it is given 3.3 times PB for 17 years, with a market value of 2.711 billion yuan. Finally, the reasonable total market value range is 57.11 yuan to 6.211 billion yuan. Based on the current stock price, the market value after the IPO is 5.437 billion yuan, the rising space is 5.03%, 14.23%, and the corresponding target price range is 15.89 yuan to 17.28 yuan. The company's market capitalization is small, and as the only tourism state-controlled listed company in Northwest China, it benefits from the theme of state-owned enterprise reform. To sum up, maintain the "overweight" rating.
Risk tips: project promotion does not meet expectations; passenger flow does not meet expectations; risks of natural and social factors; economic cycle risk.