The company disclosed its 2020 annual report. In 2020, the company achieved revenue of 1.878 billion yuan and net profit of-240 million yuan, with year-on-year changes of-76.45% and-192.76%, respectively. In the fourth quarter of 2020, the company achieved revenue of 492 million yuan and net profit of-91 million yuan, respectively, with year-on-year changes of-72.86% and-528.82%, and profit recovery was slightly lower than expected.

Support the main points of rating

In response to the impact of the epidemic, the company's financial structure is sound. In 2020, as a comprehensive tourism group, the company was obviously affected by the COVID-19 epidemic, with a decline in revenue and a significant loss in performance. In response to the challenges brought by the COVID-19 epidemic, the company has made clear its development strategy, stabilized the team and employees, and made use of the combination of heavy and heavy assets to achieve business recovery. At the end of the reporting period, the company's asset-liability ratio was 32.13%, down 10.41% from the same period last year, with monetary funds of 1.641 billion yuan, accounting for 46.63% of total assets. A sound financial structure and abundant cash reserves helped the company cope with the impact of the epidemic.

The domestic epidemic is under control and business recovery is under way. The company's Guangzhou Tour resumed its inter-provincial team and "machine + wine" business in July 2020 to cultivate domestic tourism, and domestic tourism revenue increased by about 50% in the fourth quarter of 2020 compared with the third quarter. The company mainly arranges accommodation business in the core city of Guangdong-Hong Kong-Macau Greater Bay Area, and manages 27 new hotels and 5000 guest rooms, which forms a development path with the combination of light and heavy assets with its three high-end hotels. Although the revenue and profits of self-owned hotels have both declined, the company's ability to cope with the epidemic has been demonstrated by the company's development of takeout, online celebrity restaurants and food sales.

Business innovation, organization and integration. The company actively explores the diversified development of tourism, creates a model for the application of intelligent tourism and three-dimensional air traffic, and strives to realize the innovation of mice tourism in e-sports 's tourism, mice, sports events and education. In the context of the internal cycle, the Guangzhou Tour in 2020 will continue to promote the M & A project, initially realize the domestic key regional operation center, and the land integration system is expected to improve the future performance of Guang Tour.

Valuation

According to the company's annual report, we slightly adjusted our previous profit forecast and estimated that the EPS for 2021-2023 will be 0.41 yuan 0.46 shock, and from 2022 to 2023 it will grow by 13.6% and 34.8% compared with the same period last year, corresponding to a price-to-earnings ratio of 20.6 pounds. 18.1 pounds, 13.4 times, to maintain the overweight rating.

Major risks to rating

The repeated risk of COVID-19 epidemic situation, the lower-than-expected opening of international tourism, and the risk of competition in the domestic tourism market.