Main points of investment
Event: 2018H1 achieved revenue of 140 million yuan / + 7.86%, net profit of 8.26 million yuan / + 35.23%, and non-return net profit of 5.32 million yuan / + 28.99% per share.
Dalian headquarters has grown steadily and has become an important driving force for performance growth. Shengya SeaWorld of Dalian headquarters is still the main source of performance of the company. 2018H1 Dalian has an income of 112 million yuan / + 11.46%, accounting for 76.64% of total revenue and a net profit of 1011 yuan / + 36.36%. The main reason for the performance growth of Dalian headquarters is that the company ploughs the market deeply through various channels and strengthens its product marketing work. for example, this department has become one of the important shooting places for Tencent's "pattern Sister" column, launched special promotional activities in eight small festivals in the first half of the year, and continued to carry out product innovation, resulting in steady growth in passenger flow and business income.
The management output income is growing rapidly, and the profitability is significantly higher than that of the traditional business. The company began to promote the light asset management export business model in 2016. The first phase of the Wuhu project opened in September 16, the second phase of the show opened in the Spring Festival in 18 years, and the Huai'an project opened in May 17. The partner has proposed to renew the operation management and technical service contract. 2018H1's other business income is 1927 yuan / + 102.26%, which is mainly composed of management consulting income and marine animal export income, and its gross profit margin is as high as 83.90%/+15.86pct, so its profitability is very considerable.
Gross profit margin and net profit margin have increased significantly, and the promotion of projects in other places has increased the management fee. The gross profit margin of 2018H1 is 51.16%/+0.81pct, mainly due to the expansion of the management output business with high gross margin and the further growth of profitability; the net profit margin is 4.90% and 2.26%. In terms of expense rate, the sales rate 8.35%/-0.76pct has decreased, the management rate 27.76%/+1.16pct has increased due to consultancy fees and other fees brought about by the promotion of remote projects, and the financial rate 7.22%/+1.73pct comes from the increase in bank loans needed for the promotion of remote projects.
The expansion of projects in different places has been accelerated. The amount of projects under construction in 2018H1 was 262 million yuan, an increase of 32.07 million yuan over the beginning of the year, and intangible assets were 592 million yuan, a substantial increase of 390 million yuan over the beginning of the year, mainly due to the inclusion of land for Yingkou and Chun'an projects in the consolidated statement. In the next few years, the company has planned more than 3 billion yuan of projects across the country. if the financing is smooth and the project meets expectations, then the company's performance will usher in a qualitative leap and is expected to become China's "Blue Walt Disney Company".
Profit forecast and investment rating: driven by Dalian headquarters, the performance of 2018H1 company has improved steadily, and the scale of management export business and gross profit margin have increased significantly. The company's Harbin Polar Pavilion Phase II project, Kunming project and Yingkou project move frequently, and the Moby Dick Project continues to promote, actively creating the first domestic original marine culture IP industry chain. By raising its profit forecast, the company is expected to have an EPS of 0.52, 0.57, 0.62 yuan respectively from 2018 to 2020, and its share price on August 21, corresponding to PE, will be times that of 47-43-39, maintaining a "prudent overweight" rating.
Risk tips: the progress of the new project is not as expected, the company's financing channels are blocked, extreme weather affects passenger flow, etc.