Incident: Lijiang Co., Ltd. released its 2023 annual report. The company achieved total operating income of 799 million yuan in 2023, a year-on-year increase of 152.37%; realized net profit attributable to shareholders of listed companies of 227 million yuan, a year-on-year increase of 5,971.91%. The company's 2023 profit distribution plan is based on 549490711 to distribute a cash dividend of 3.50 yuan (tax included) to all shareholders for every 10 shares.
The company's ropeway business grew significantly in 2023, and various businesses were steadily repaired. In 2023, the three ropeways received a total of 6.1211 million visitors, an increase of 4.1821 million over the previous year, an increase of 215.67%. In terms of performance business, I am impressed that Lijiang performed a total of 739 shows, an increase of 462 shows over the previous year, an increase of 166.79%. It received 1.56 million visitors, an increase of 1,259,800 over the previous year, an increase of 419.57%. Longyue Restaurant received a total of 672,200 visitors, an increase of 517,000 over the previous year, or 337.56%. In terms of hotel business, Lijiang Hefu Hotel Co., Ltd. achieved operating income of 147,537,700 yuan, a year-on-year increase of 616.311 million yuan, an increase of 71.74%, and net profit of 3.6834 million yuan, an increase of 120.38% over the previous year.
The tourism market in Yunnan is booming during the 2024 Spring Festival. Focus on the implementation of hotels and other projects in the middle of the year. During the 8-day Spring Festival holiday in 2024, Yunnan Province achieved a total tourism revenue of 63.74 billion yuan. Compared with the same period of the Spring Festival in 2023, a comparable increase of 45.1%. In terms of scenic spots, the number of visitors to the ancient city of Lijiang reached a record high of 80,000.
In terms of ropeway business, the three ropeways received a total of 191,300 visitors, an increase of 48.02% over the 2023 Spring Festival. Among them, Yulong Snow Mountain Ropeway received 83,300 visitors, an increase of 76.61% year on year; Yunshanping Ropeway received 91,400 visitors, up 21.59% year on year; and Yakniuping Ropeway received 16,600 visitors, an increase of 140.46% year on year. In terms of new hotel projects, the Lugu Lake Indigo Hotel is scheduled to open in June 2024, and Longteng's revenue budget will increase by 10.54.38 million yuan. At the same time, in terms of revenue growth, Xuekawa is expected to add 8.14 million yuan in venue rental, passenger service revenue, and store rental revenue.
Investment advice: The company is expected to achieve revenue of 887/9.12/947 million yuan and net profit to mother of 2.41/2.58/ 272 million yuan in 2024-2026, corresponding to PE of 21.7/20.3/19.2X, maintaining the “increase” rating.
Risk warning: Scenic area safety incidents affect demand; progress of new projects falls short of expectations; natural climate impacts.