This report is read as follows:
The company's 2019 annual report and 2020Q1 performance are in line with expectations. Based on "two dams and one gorge", the company vigorously distributes the tourism industry and is expected to become bigger and stronger through endogenous extension. Maintain the "overweight" rating and maintain the target price of 13.00 yuan.
Main points of investment:
The performance is in line with expectations, maintaining the "overweight" rating and maintaining the target price of 13.00 yuan. The company's revenue in 2019 is 2.213 billion (yoy + 9.62%), the net profit is 115 million (yoy + 17.09%), the revenue of 2020Q1 is 286 million (yoy-46.42%), and the net profit is-37 million (yoy-286.34%), which is in line with expectations. The growth in 2019 mainly came from the automobile and tourism business, while the decline in 2020Q1 performance was mainly due to the impact of the epidemic. The revenue in 2020-2021 was reduced by 2.32 billion (- 101 million,-4.16%) and 2.486 billion (- 66 million,-2.59%), respectively, and the net profit was 118 million (- 103 million,-46.57%) and 291 million, corresponding to 0.35 (- 0.31 yuan,-46.43%) and 0.87 yuan in EPS. According to the profit forecast for 2022, the net profit of revenue and return is 27.73,339 million yuan, corresponding to EPS 1.01 yuan. Maintain the target price of 13.00 yuan, corresponding to 15 times PE in 2021, maintain the "overweight" rating.
Based on "two dams and one gorge", we will vigorously distribute comprehensive tourism services. The income of domestic tourism in 2019 was 6.63 trillion yuan, contributing 10.95 trillion yuan directly and indirectly to GDP, which played an important role in stabilizing economic growth. The company is based on "two dams and one gorge", rooted in "one river and two mountains", and vigorously develops tourism business. In 2019, the tourism sector has revenue of 362 million, year-on-year + 31.98%, total profit of 107 million, year-on-year + 71.41%, and is expected to maintain a high growth trend in the future.
The tourism industry is in a period of reform, and the industry leader is expected to continue to become bigger and stronger through mergers and acquisitions.
Affected by COVID-19 's epidemic, the tourism industry has shut down and the industry is facing changes. The company is expected to integrate local tourism resources through mergers and acquisitions through its own advantages, and continue to expand and strengthen its tourism business.
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
