Introduction to this report:
The tourism industry can be expected to continue to recover in 2021. The company will improve quality and efficiency and transform in the direction of culture and technology, and its future performance has strong growth potential.
Key points of investment:
Investment advice: The company's performance fell short of expectations. Affected by the epidemic, the 2021-2023 EPS was lowered by 0.21 (-0.11) /0.26 (-0.16) /0.33 yuan. The 2022 30x PE was given, and the target price was lowered to 7.8 (-1.11) yuan to maintain the increase in holdings rating.
Performance summary: The company revised the 2021H1 results. The net profit returned to the mother before the revision was 15.25 million yuan, and the net profit returned to the mother after the revision was 80-12 million yuan.
The company actively utilizes the product technology advantages of the entire tourism industry chain and the tourism culture technology business segment to take advantage of the synergies between tourism culture technology, comprehensive tourism services, and the operation business segments of the cultural tourism complex to improve the company's overall efficiency. With domestic vaccinations being vaccinated one after another, the risk of another large-scale outbreak of the epidemic has declined, and the tourism industry can be expected to continue to recover. At the same time, the recurrence of local domestic epidemics has slowed the pace of recovery in the company's traditional tourism business to a certain extent. The company's tourism, culture, and technology sector has accelerated the construction progress of key projects. Revenue from some projects fell short of expectations due to the impact of the inspection schedule.
Short-term performance is under pressure, and medium- to long-term performance is improving. Affected by the COVID-19 pandemic, the company's affiliated scenic spots, tourist transportation, meetings, weddings, and hotel businesses were temporarily closed in 2020. The transformation of cultural technology and technology businesses will support future growth, and will also hedge against losses from the epidemic to a certain extent in the short term.
Risk factors: The epidemic continues for a long time, cultural and technological projects have defaulted on contracts, the impact of bad weather, and traffic improvements that fall short of expectations.
