Main points of investment

Asset restructuring promotes the transformation of the industry format, and the coordinated development enters a new stage. Xiangyuan Culture Travel takes the investment and operation business of tourism assets and digital cultural assets as the core, forming a business pattern of coordinated development of "tourism assets, animation derivatives, animation film and television, digital technology". In the past, the company ploughed the animation field, with 1200 + animation copyright image, mung bean frog and other IP matrix. In 2022, the company successfully reorganized its assets, injected scarce tourism resources, realized the coordinated development of "online cultural products and offline tourism scenes", and entered a new stage of Xiangyuan literature and tourism.

The policy promotes the industrial recovery, and financial innovation brings the era of "literature and tourism +". In recent years, the state has issued policies to promote the development of tourism, and the culture and tourism industry is expected to further recover. Xiangyuan Literature and Tourism complies with the trend, and the target of asset reorganization is in the same direction as the focus of national tourism city construction. In 2018, the Ministry of Culture and the Ministry of Tourism were officially listed, marking the beginning of a new era of cultural and tourism integration in China. Relying on its scarce literature and tourism assets and first-class content creativity, Xiangyuan Culture Travel Group deeply excavates the elements of Chinese culture and deeply integrates it with tourism consumption scene by means of IP and science and technology, and constructs the industrial model of "cultural IP+ tourism + technology" to welcome the new era of literature and tourism.

Scarce resources catalyze the integration of culture and travel, and the integration of ideas promotes future development. The company acquires the scarce high-quality literature and tourism resources under Xiangyuan Holdings by issuing shares to purchase assets, which are mainly located in the core scenic spots of Zhangjiajie, Phoenix Ancient City and Qiyunshan. The injection of high-quality and scarce tourism assets will have a "chemical reaction" with Xiangyuan Wenlu's original cultural innovation and original IP and other core competencies and development capabilities to promote the mutual empowerment of culture and tourism. Adhering to the concept of "investment, research, construction and transportation", the company relies on the group's high-quality resources in investment, research and construction, so as to create a solid foundation for the company's multi-angle and fine operation in integrated operation, scenic spot drainage and user experience enhancement. further enrich the cultural travel consumption format, and continue to upgrade the brand and cultural influence of Xiangyuan Wenliu.

Profit forecast and investment suggestions: in 2023, the company completed the major asset restructuring and realized the strategic transformation. A number of high-quality tourism assets from Daxiangxi of Hunan and Qiyunshan of Anhui were injected into the company, which laid a solid foundation for the company to realize the high-quality development of culture and travel integration. It is estimated that the company's net return profit from 202pm to 2025 will be 1.53 trillion yuan respectively. The PE corresponding to the current share price (June 30, 2023) is 55.8max / 42.0max / 33.4, covering it for the first time and giving it an "overweight" rating.

Risk tips: macro and industry policy risks, business and business development risks, talent and management investment risks, etc.