The company released its 2024 semi-annual performance forecast. 24H1 is expected to achieve revenue of 11.00 to 1.25 billion yuan, yoy +49% to 69%, net profit due to mother 4.80 to 0.62 billion yuan, yoy +59% to 105%, net profit without return to mother 4.77 to 0.617 billion yuan, yoy +62% to 109%. Single 24Q2 is expected to achieve revenue of 5.40 to 0.69 billion yuan, yoy +7% to 36%, net profit to mother 2.28 to 0.368 billion yuan, yoy -6% to +52%, after deducting non-return net profit of 2.28 to 0.368 billion yuan, yoy -5% to 53%.

The company's 24Q2 asset class shows were +30%, mainly the 23Q2 Shanghai and Foshan projects had not yet started. The increase in the number of performances led to a year-on-year increase in performance. The domestic tourism market remained strong in 24 years. From July 1 to July 21, the average number of daily performances of the company's high-asset projects reached 33, a record high, +8% compared to 23Q2, +64% compared to 19Q2. Among them, the average number of daily performances for mature projects in Hangzhou/Sanya/Lijiang was -18%/-6%/-22%, respectively, compared to -31%/-22%/+34% compared to 2019. The average number of daily shows for the revamped Xi'an project was +64% compared to 23 years, and the average number of daily shows for the new project in Shanghai/Guangdong was 2/3, respectively. field. The company's performing arts model has been verified for many years, and its profitability is stable.

Profit forecast and investment advice: The company is a leading tourism and performing arts leader in China. Mature projects continue to be iterated, further opening up room for growth after new projects are launched. The company's revenue for 2024-2026 is estimated to be 2.73/3.175/3.455 billion yuan, +42%/+16%/+9%, and net profit to mother is 1.247/1.476/1.635 billion yuan, respectively, +1235%/+11% YoY. The PE corresponding to the current stock price is 16/14/12X, respectively, maintaining the “recommended” rating.

Risk warning: Risk of macroeconomic fluctuations, risk of falling short of expected passenger flow recovery in scenic spots, risk of falling short of expected risk of tourism spending power recovery falling short of expectations.