Event: 1) revenue of 1.615 billion yuan /-73.25%, net profit of-698 million yuan /-656%, non-return net profit of-763 million yuan /-1137%. 2) the place of registration of the company has been changed from Baoji City, Shaanxi Province to Sanya City, Hainan Province.
Tourism and catering business have fallen sharply, outbound travel business restart and recovery still need patience. Due to the impact of public health incidents, outbound travel business stagnated in 2020 and there was no hope of a short-term recovery, the company shifted its focus to the domestic travel market, especially the middle and high-end customer base market where the company is good at, and the aviation and rail catering business also declined sharply. Specifically: 1) Tourism business (mainly domestic travel): in 2020, retail income is 592 million yuan /-83.21%, gross profit is 10.80%; gross profit is 4.90pct; wholesale income is 180 million yuan /-60.37%; gross profit is 2.68%; gross profit is 22.24pct; enterprise award revenue is 267million yuan /-71.55%, but gross profit 12.93%/+2.51pct has increased. The Tokyo Olympic Games have announced that it will not receive foreign spectators, and outbound travel is not expected to be gradually opened until 21Q4 at the earliest, and it is not expected to return to the level of the same period in 19 years until 23-24, and the company's outbound travel business still needs patience to resume. 2) catering business: airline catering income is RMB 322 million /-58.70%, gross profit is 27.86% Maqure 13.59pct, railway catering income is RMB 147 million /-51.33%, gross profit is 32.29%/-5.85pct. The company carries out social catering services when catering is greatly damaged to increase the source of profits. With the rapid recovery of domestic business and tourism travel, the company's catering business is also expected to take the lead in growth. 3) other businesses: the revenue of HNA drinks acquired in the second half of last year was 35 million yuan, with a gross profit margin of 17.16%; the revenue of the nine days acquired the year before last reached 72 million yuan, with a gross profit margin of 77.54%.
Deal with HNA assets, 2021 light. 1) loss on investment: the company had forecast a net profit of-260 million yuan in 2020, which eventually reached-698 million yuan. The difference was mainly due to the investment loss of 20.31% of the company's shares. As the HNA department company has been bankrupt and restructured, Yisheng Financial Services has re-determined the impairment of its assets such as the claims of the enterprises related to the bankruptcy reorganization of HNA Group, resulting in an additional 295 million investment losses for the company. Affect the overall profit; 2) HNA Hotel equity impairment: the company acquired 10.09% stake in HNA Hotel for 785 million yuan in June 2019, and included in other equity instruments. At the end of 2019, the equity impairment was 50 million yuan; as a result of the bankruptcy restructuring of HNA Hotel, all of these equity impairment at the end of 2020, that is, the remaining 735 million yuan. According to accounting standards, the impairment of other equity instruments directly write down the owner's equity in the balance sheet and do not affect the income statement. At the end of 2020, the accounts receivable / prepaid accounts / other receivables of the company to the Department of Navigation were RMB 454 million and RMB 494 million respectively.
Continue to pay attention to the layout of the company's tax-free business. The company has previously acquired 49% stake in Tianjin Cruise's home port duty-free shop, 20% stake in Nanjing duty-free shop, and 40% stake in Beijing duty-free shop. We look forward to deepening cooperation with China Cruise on intra-city tax exemption, outlying island duty-free and potential foreign tax-free projects. In addition, the company has set up subsidiaries in Haikou and Sanya as the main operators to carry out duty-free business on the island, and is promoting cooperation with powerful suppliers of duty-free products and resources with duty-free warehouses, which is worth looking forward to.
Profit forecast and investment rating: it is estimated that the EPS for 21-23 will be-0.14, 0.08, respectively, and the closing price on April 1, corresponding to PE, will be 34 times, respectively, maintaining the "prudent overweight" rating.
Risk tips: exchange rate fluctuation risk, overseas political risk, overseas destination emergency risk, etc.