Main points of investment
Event: 2019H1 revenue 131m yuan /-6.74%, return net profit 7.59 million yuan /-8.09%, deducting non-return net profit 8.02 million yuan / + 50.77% Magi ROE is 1.49% RMB0.38 pct.EPS is 0.06 yuan /-7.09%.
The price war in Dalian and Harbin continued to escalate, and the company's revenue declined slightly. Dalian and Harbin are the main sources of revenue for the company, and 2019H1 Dalian headquarters and Harbin subsidiaries together account for more than 90% of the company's total revenue. Affected by the fierce market competition in Dalian and Harbin, the continuous escalation of price war, and the increasing requirements of tourists for products and services, the company's 2019H1 revenue and return net profit have declined slightly. At present, the company is actively establishing regular marketing in the four seasons, expanding media cooperation, promoting service upgrading and brand building, and taking targeted measures for inter-industry competition to expand the local and non-local markets.
The management output project short-term income declines, the long-term potential is huge, the profitability is bright. Since 2016, the company began to promote the export business model of light asset management. The first phase of the Wuhu project opened in September 16, and the second phase of the show opened in the Spring Festival in 18 years, contributing more than 5000 yuan to the company's revenue. Huai'an project opened in May 17, contributing more than 2400 million yuan to the company's revenue. Wuhu and Huaian management export projects have expired, confirming the company's comprehensive strength in the aquarium industry. 2019H1's other business income is 606.91 million yuan /-68.5%. Although other business income declined due to the recognition of animal feeding service revenue in the same period last year, the gross profit margin is still as high as 51.39%, which is very profitable, which may become an important breakthrough for the company to optimize its business structure.
The gross profit margin increased significantly, the effect of cost control appeared, and the financial premium rate was raised by remote expansion. 2019H1 gross profit margin is 53.45%/+2.29pct, due to the cost of improving operational efficiency; net profit margin 3.89%/-1.01pct. In terms of expense rate, the overall cost of the period decreased slightly, with 5648 million yuan /-7.02% during the 2019H1 period and 43.19% /-0.13 pct during the period, of which the sales rate was 7.89% /-0.47 pct and the management rate was 26.19% /-1.56pct, resulting from a reduction in advertising fees, consulting fees and other fees, and the financial rate 9.11% / + 1.90% pct came from an increase in bank loans.
Long-distance projects continue to develop. 2019H1 Company is under construction at 607 million yuan, an increase of 123 million yuan over the beginning of the year, mainly due to the increase in investment in Harbin Polar Hall Phase II project, Zhenjiang beluga whale project, Yingkou Bayuquan beluga whale project and Moby Dao Lake project, of which the Zhenjiang project has been more than halfway, Yingkou project completed 1xp3, Harbin and Qiandao Lake project is in the initial stage. In the next few years, the company has planned an investment of about 2.5 billion yuan in the country. If the financing is smooth and the project management meets expectations, the company's performance will usher in a qualitative leap.
Profit forecast and investment rating: the company actively expand marketing channels, optimize business structure, to cope with fierce competition, 2019H1 performance declined slightly compared with the same period last year. The management export business continues to make efforts, and the gross profit margin remains high. Harbin Polar Pavilion Phase II, Yingkou, Qiandao Lake projects frequently, "Moby Dick Project" continues to promote, actively create the first domestic marine culture original IP whole industry chain. It is estimated that the EPS in 19-21 will be 0.55, 0.60 and 0.64 yuan respectively, and the share price on August 26 will be times that of 71-65-61, respectively, maintaining the "prudent overweight" rating.
Risk tips: the progress of the new project is not as expected, the company's financing channels are blocked, extreme weather affects passenger flow, etc.
