This report is read as follows:
The company recently issued a draft of equity incentive to encourage the core management. At the same time, the company plans to acquire "two dams and one gorge" regional cruise ships, increase the layout of the tourism industry, the future growth is expected.
Main points of investment:
High-quality state-owned enterprises will increase the layout of the tourism industry, maintain the "overweight" rating, and maintain the target price of 13.00 yuan. Recently, the company released a draft of equity incentive, which is intended to encourage management to work enthusiastically. At the same time, the company plans to acquire "cross-strait one gorge" regional cruise ships and increase the layout of tourism business. In the future, with the injection of local high-quality assets, the development of the company is expected to reach a new level. It is estimated that the revenue of the company from 2019 to 2021 is 21.28,24.21 and 2.552 billion yuan respectively, and the net profit is 1.72,2.21 and 291 million yuan respectively, corresponding to 0.52,0.66,0.87 yuan for EPS. Maintain the target price of 13.00 yuan, corresponding to 2019 PE 25 times, maintain the "overweight" rating.
High equity incentive unlocking scheme to stimulate the enthusiasm of the core management. The company plans to grant 9.92 million restricted shares, accounting for about 2.97 per cent of the current total share capital of 334.0037 million shares. Among them, 8.55 million shares were granted for the first time, accounting for 86.19% of the total granted, accounting for 2.56% of the current total share capital. The standard for lifting the restriction is higher: the ROE in 2019-2021 is higher than 5.1%, 5.2% and 5.3%, respectively. Taking the average performance from 2016 to 2018 as the standard, the growth rate of deducted non-net profit in 2019-2021 is not less than 15%, 30% and 50% respectively, the turnover rate of accounts receivable is not less than 50 times, and the index is not lower than the 75 quartile level of comparable enterprises in the same industry. Using equity to encourage the core management and higher unlocking conditions can effectively stimulate the enthusiasm of the management.
The acquisition of "one gorge on both sides of the strait" cruise ship to increase the layout of tourism. At present, tourism has become an important domestic industry. In 2018, the national tourism revenue was 5.97 trillion yuan, contributing 9.94 trillion yuan to GDP, accounting for 11.04% of the total GDP. Yichang Transportation is based in Yichang and has the core resources of "two dams and one gorge". The acquisition of "one gorge on both sides of the strait" will once again increase the layout of tourism and is expected to grow in the future.
Catalyst: the landing of the reform policy of state-owned enterprises and the expectation of potential integration of local tourism resources.
Risk tips: road passenger transport and tourism services traffic safety risks, intensified competition in the tourism industry
