Main points of investment
Company announcement: 2019H1 revenue of 993 million yuan /-15.47%, net profit of 3488 million yuan /-27.62%, deduction of non-return net profit of-29.36 million yuan. EPS is 0.03RMB /-27.52pctMagne ROE is 1.48%/-1.32pct.
The performance of the main business is improving, and the overall revenue and profits are greatly affected by the real estate divestiture in the short term. 2019H1's revenue and home net profit both declined, as the company spun off its real estate business, which accounted for 1 / 3 of revenue, in December 2018, and the real estate business no longer contributed revenue. The reason for the sharp decline in home net profit is that 1) the real estate business no longer contributes profits. 2) the loss of garden, wedding, tourism car and scenic spot development business is expanding. At present, the company's business is still continuing to integrate, in the short term, gardens, weddings and other businesses will continue to lose money. However, at present, the revenue of the company's three main businesses has increased, and its core business continues to strengthen. In addition, 2019H1 Culture and Travel Technology has been incorporated into the company's consolidated statement, resulting in revenue of 174 million yuan / + 17.68%, accounting for 17.56% of total revenue, and net profit of 5852 yuan / + 32.06%. It has strong profitability and plays an important role in improving the company's revenue and profits.
Major acquisitions enhance the competitiveness of core business. 2019H1 acquired 100% shares in Wenzhou Travel Technology and Yunnan World Expo International. Wen Lu Science and Technology has obvious advantages in amusement project technology development, planning and design business. the integration of Culture and Travel Technology can enhance the company's scientific and technological advantages and promote the transformation and upgrading of the traditional tourism mode. Expo International is mainly engaged in inbound and outbound and domestic travel business, including Expo International assist Company to expand global tourism services, focus on tourism main business, and solve the industry competition with the former shareholders of Expo International.
Corporate governance continues to improve, and fees have fallen sharply during the period: 2019H1 gross profit margin 17.81%/-7.73pct, resulting from the divestiture of the real estate business with relatively high gross margins. The net interest rate of homing is 3.51% Maxime 0.59 pct, which is basically stable. In terms of expenses, the sales rate is 3.66% Maxime 0.12 pct, due to the reduction of market development fees and employee compensation fees, and the slight increase in the management rate of 8.87% Universe 0.95 pct, but the salaries of employees and the cost of hiring intermediary agencies are significantly reduced. Benefiting from the sharp reduction in interest charges, the financial rate of 0.60% Maxime 3.63 pct has dropped sharply. The rate for the period is 13.13% Universe 2.77 pct, with a significant decrease.
With the coordinated development of the three major plates, the competitiveness of the main business continues to grow. At present, the company's main business sectors are culture and tourism complex operation, tourism integrated services and tourism culture and technology. The proportion of revenue is 3.35%, 79.09%, 17.56%, 17.56%, respectively. The revenue of 2019H1 is 33 million yuan / + 16.71%, 785 million yuan / + 26.93%, 174 million yuan / + 17.68%, respectively. Various business sectors cooperate with each other on the basis of independent operation, reduce operating costs with synergy, effectively improve the overall efficiency, gradually get rid of the single-dimensional market competition, and constantly shape the company's market competitiveness.
Profit forecast: the company has unreplicable competitiveness in the whole industry chain, including "food, housing, transportation, tourism, shopping, entertainment" and other tourism elements. At present, the company's main business performance continues to improve, in the mutual cooperation and development, the synergy effect continues to grow. The acquisition of Wen Lu Technology and Expo International will enhance the company's scientific and technological strength and market competitiveness, and improve the company's profitability.
As the popularity of the national tourism industry continues to rise, the company's advantages in the global tourism industry continue to expand, and profitability is expected to continue to improve in the future. With the introduction of 19-year profit forecast, it is estimated that the EPS in 19-21 will be 0.27, 0.29, 0.31 yuan, and the share price corresponding to PE on August 26 will be times that of 21-19-18, maintaining the "prudent overweight" rating.
Risk tips: extreme weather affects passenger flow, industrial policy risk, goodwill impairment risk, acquisition target business is not as expected, etc.
