The company released its 2023 annual report. In '23, the company achieved revenue of 799 million yuan, +152.37% year over year; net profit to mother was 227 million yuan, +5971.91% year over year. The company's performance continued to pick up in '23, and active dividends increased shareholders' returns. It is optimistic that subsequent construction of new projects will contribute to increased performance, and maintained an increase in holdings rating.
Key points to support ratings
The travel market recovered rapidly, and the company's performance continued to pick up in 23 years. In '23, the company achieved revenue of 799 million yuan, +152.37% year over year; net profit to mother was 227 million yuan, +5971.91% year over year; net profit without return to mother was 235 million yuan, reversing a year-on-year loss of 255 million yuan. Among them, Q4 achieved revenue of 157 million yuan, +161.40% year over year; net profit to mother of 15.6.024 million yuan, a year-on-year loss of 38.6058 million yuan; net profit without return to mother of 19.5045 million yuan, reversing a year-on-year loss of 503.685 million yuan.
The number of visitors received has clearly rebounded, and various business sectors have steadily recovered. 1) Ropeway: In '23, the company's three ropeways received a total of 6.1211 million visitors, compared with +215.67%. Among them, the two small to medium ropeways grew significantly. The number of visitors received by the Yunshanping and Yakniuping ropeways was +346.89%/+514.46% year-on-year respectively. Due to cost rigidity, the gross margin of the sector increased, +8.76pct year-on-year. 2) Hotels: In '23, Lijiang Hefu Hotel Co., Ltd. achieved revenue of 148 million yuan, +71.74% year over year; realized net profit of 3.6834 million yuan, +120.38% year over year. Diqing Shambhala Tourism Investment Co., Ltd. achieved revenue of 37.83 million yuan, +64.86% year on year; loss decreased year on year. 3) Performance: Impression of Lijiang in '23 received 1.56 million visitors, +419.57% year over year; achieved revenue of 138 million yuan, +383.56% year over year.
Strengthen cash dividends and enhance shareholder returns. According to the company's 2023 profit distribution plan, the company plans to distribute a cash dividend of 3.5 yuan (tax included) for every 10 shares based on existing share capital. The dividend intensity has increased compared to previous years, and efforts are being made to increase shareholder returns.
The tourism market got off to a good start during the Spring Festival, and construction of new projects is progressing steadily and can be expected to increase. During the Spring Festival in '24, the company's scenic spots had a good start. The three ropeways received a total of 191,300 visitors, +48.02% over the same period; the impression is that Lijiang received 63,500 visitors, +67.41% over the same period. According to the company's announcement, the Lugu Lake Indigo Hotel is scheduled to open in June 2024. The Yakniuping Tourist Ropeway renovation and expansion project is progressing steadily, and the overall construction progress of Lugu Lake Mosuo Town has reached 12.63%. The tourism market continues to be booming, and the company can expect continuous supply-side optimization and growth.
valuations
The domestic tourism market maintains a high level of prosperity. The company's tourism resources are of high quality, and they are optimistic about the increase brought about by supply-side optimization of scenic spots, hotels, etc. In view of the fact that the company's new hotel was put into operation in '24, and the cost side was under great pressure. We adjusted the 24-26 EPS to 0.43/0.47/0.52 yuan, and the corresponding price-earnings ratio was 21.9/20.0/18.3 times. Maintain an increase in holdings rating.
The main risks faced by ratings
Market competition risks, new project construction cycle risks, and force majeure risks such as natural disasters.