Incidents:
In 2023, the company achieved revenue of 799 million yuan/ +152%, net profit of 227 million yuan/ +5972%, net profit of 235 million yuan/ +1251% after deducting non-return to mother. 2023Q4 had quarterly revenue of 157 million yuan/ +161%, net profit attributable to mother of 16 million yuan/year-on-year reversal of losses, and net profit of 0.2 billion yuan/year-on-year reversal of losses after deducting non-return net profit of 0.2 billion yuan/year-on-year loss.
Comment:
The revenue side grew strongly, mainly due to the continued recovery of the travel market and a significant increase in the number of visitors received.
By business, the ropeway transportation business achieved revenue of 387 million yuan/ +170%/+17% compared with 2019, and received a total of 6.1211 million visitors/ +215.7%/+28.1% compared to 2019. Among them, Yakniuping Ropeway had impressive growth rate, receiving 381,500,000 visitors/ +514.5%/+85.6% compared to 2019; performance business revenue reached 137 million yuan/ +383%/-23% compared to 2019. The impression is that Lijiang received 1.56 million visitors/ +419.6 %/ -16.1% compared to 2019; the hotel business achieved revenue of 188 million yuan/ +71%/+58% compared to 2019.
Expense control has been improving steadily, and net interest rates have surpassed 2019 levels. Gross profit margin: The company's gross margin in 2023 was 58.7% /+24.7 pct/-8.4 pct compared to 2019. Expense side: The company's sales expense ratio is 3.4% /-1.9 pct; management expense ratio is 15.4% /-13.6 pct; financial expense ratio is -0.6% /+1.5 pct. Net profit side: The company's net profit margin was 28% /+27pct/+0.3 pct compared to 2019.
The tourism market is booming during the Spring Festival, and new projects are being carried out in an orderly manner to improve quality and efficiency. During the 2024 Spring Festival, the number of visitors to the company recovered strongly. The three ropeways/impression Lijiang received 191,300 visitors/63,500 visitors respectively, +48.02%/+67.41% year-on-year. The new project is progressing well. The company plans to complete the construction and operation of the Lugu Lake Indigo Hotel in 24, and continue to advance the Yak Niuping Tourist Ropeway renovation and expansion project and preliminary work at the Lugu Lake Performing Arts Theatre.
Increase the strength of cash dividends and effectively enhance shareholders' confidence. According to the company's 2023 profit distribution plan, a cash dividend of 3.5 yuan (tax included) will be distributed for every 10 shares based on the total existing shares, and a total cash dividend of 192 million yuan will be distributed. The company has set an operating target of 2024, which is expected to achieve revenue of 829 million yuan and a net profit of 206 million yuan attributable to shareholders of the parent company.
Investment advice: The popularity of domestic tourist attractions continues to rise, the Yunnan tourism market continues to recover, and the company's tourism resources are of high quality. The company's net profit for 2024-2026 is estimated to be 2.54/2.83/310 million yuan, which was covered for the first time, giving it an “increase in holdings” rating.
Risk warning: natural disaster risk, policy risk, new project construction cycle risk, etc.