Around the three core areas, steadily optimize the industrial chain. With ecological landscape, green environmental protection and leisure tourism as the core areas, the company is committed to developing into an integrated environmental service provider with planning and design as the guide and industrial investment as the development. The company has shifted its business focus since 2017, and through the transformation and upgrading of the leisure tourism sector, it has further strengthened its research and planning and system service capabilities in the field of leisure tourism, focusing on cultivating new profit growth points and core competitive advantages, and gradually optimizing the industrial chain. In 2019, the revenue of the company's leisure tourism business was 426 million / 677 million / 617 million yuan, accounting for 50.65% of the total revenue, 54.44% and 61.26% of the total revenue.
Further focus on East China, the regional economic environment is good, the market development potential is huge. East China is one of the regions with the fastest economic development in China, and it is the main platform for the implementation of the national Yangtze River Delta integration strategy. Regional economic development is stable and healthy, local government financial strength and regional business environment are better than most parts of the country, the total amount of investment is growing steadily, and the market scale potential is huge. In recent years, the company's business has gradually focused on East China, which accounted for more than 80% in 2019, an increase of 14 percentage points compared with 2018. It is helpful for the company to seize regional development opportunities, reduce the risk of payback and bad debts, and deep into the core blocks to promote the sustainable development of the business.
Around the transformation of leisure tourism, the competitive advantage is prominent and the development prospect is broad. The company's traditional business mainly depends on government investment and financial payments. in recent years, the company has classified projects that rely on future tourism operations as the field of leisure tourism. and participate in projects with greater potential for future investment returns by way of equity investment. The company can not only share the investment income of future projects, but also obtain priority commitment rights under the same conditions within the scope of qualifications in the process of project implementation, and further enhance the company's competitive advantage in the field of leisure tourism by means of deep participation. improve and improve the ability of industrial integration from pre-planning to late-stage management services. According to the company disclosure information wholly-owned subsidiary Yuancheng Media transformation and Yuan Chengyun intelligent technology establishment and positioning, the company transformation layout is obvious, around leisure tourism, improve competitive advantage, broad prospects for development.
Coverage for the first time, giving the company an "overweight" rating. It is estimated that the company's homing net profit from 2020 to 2022 is 157,185,219 million yuan respectively, an increase of 15%, 18% and 19% over the same period last year, and EPS is 0.54,0.64 and 0.76 yuan respectively.
Risk hint: the performance is not up to expectations and the project landing process is not as expected.
