The company publishes its quarterly report for 2021. 21Q1 realized revenue of 288 million yuan and net profit loss of 56 million yuan, which were-57.04% and 9.47% respectively compared with the same period last year. Homing net profit loss compared with 20Q1, month-on-month 20Q4 are significantly narrowed, performance recovery is basically in line with expectations.
Support the main points of rating
Losses narrowed in the first quarter and the recovery was in line with expectations. The company's 21Q1 revenue fell 57.04% compared with the same period last year, and its net profit and loss narrowed significantly compared with the same period last year, and the business recovery is on the right track. Although the company's holding subsidiary Guangzhou Travel has suspended group travel and "air tickets + hotels" from January 27, 2020.
Business, but the outbound tourism business still brings some income for the company. 20Q1 travel to deal with the "local New year" and outbound tourism has not opened the situation, the performance is still showing a sustained recovery momentum, the company's travel agencies, hotels, exhibitions, scenic spots, tourism transportation and other business recovery trend is obvious.
Make up for the shortcomings and practice the internal skills. In the case of performance losses, the project under construction of 21Q1 Company was 27 million yuan, an increase of 75.93% over the end of 2020, and the development expenditure was 3 million yuan, an increase of 210.83% over the end of 2020. The company carries on the targeted upgrading and transformation to the aging of China Hotel, Garden Hotel and other properties and facilities, and continues to invest in the construction of Guang Zhi's online platform and the improvement of app functions, and the development pattern of online and offline linkage is relatively clear. The company invests in business and product-level deficiencies, which is expected to improve the product user experience and form a word-of-mouth effect.
The company's goodwill is relatively stable and the organization is integrated with the development of the whole country. The goodwill of 21Q1 is 99 million yuan, which is stable compared with the previous period. The company's goodwill mainly comes from mergers and acquisitions in key areas of the country, but goodwill maintains a stable level. The company sets up the operation center in the key areas of the country, plans the integrated development of the organization of land in the whole country, and gives full play to the accumulation of the tour group for many years. Making use of the advantages of the local tourism resources, research, cruise, theme products and other resources, the development pattern of land integration is clear, and it is expected to increase the competitiveness of Guangzhou Travel in the domestic tourism market in the future.
Valuation
According to the company's quarterly report, we maintain our previous profit forecast and expect the company's EPS0.41/0.46/0.62 in 21-23 to grow by 13.6% and 34.8% year-on-year in 22-23, with a price-to-earnings ratio of 19.7, 17.3 and 12.8 times respectively, maintaining an overweight rating.
Major risks to rating
Competition in the domestic tourism market intensifies, the recovery of international tourism is not as expected, and the COVID-19 epidemic is at risk again and again.