Zhangjiajie (000430): Reduced ticket prices lead to increased revenue, Dayong Ancient City expected to increase this year

Zhangjiajie (000430): Reduced ticket prices lead to increased revenue, Dayong Ancient City expected to increase this year

Investment Highlights: The 2018 report published by the company: Realized operating income4.

68 ppm, a decrease of 14 per year.

78%, net profit attributable to shareholders was 2640.

390,000 yuan, down 60 every year.

8%, lower than our Air Force’s expectations (45 million yuan); non-net profit deduction of 2117.

930,000 yuan, an annual increase of 4142.

02%.

In this period, the company strictly controlled the management expenses and sales expenses, and the management expense ratio decreased by zero.

76pct to 17.

16%, the sales expense ratio decreased by 0.

93 points to 4.

84%, due to the supplementary capitalization of the special expenditures of the Dayong Ancient City project and the decline in the size of working capital expenditures, the company’s financial expenses refund expenses decreased, and the financial expense ratio decreased2.

31pct to 0.

89%, the overall gross profit margin increased by 0.

49 points to 31.

52%.

In 17 years, the company disposed of its subsidiaries and obtained a large amount of investment income. The non-recurring gains and losses in this part of the period increased significantly, resulting in the increase of non-recurring net profit.

Reduced ticket prices have led to a decline in revenue, and passenger flow has remained basically the same as last year.

In the initial period, the company received 596 tourists.

490,000 people, an increase of 0.

25%, basically the same as last year.

Among them, the number of passengers purchasing environmental protection passenger tickets decreased by 2.

85%, Baofeng Lake, Shili Gallery sightseeing trams increased by 12 respectively.

72% / 8.

29%.

Affected by the construction of Wulingshan Avenue, traffic control is implemented in the Baizhangxia section of Wulingyuan District, from the city to the Forest Park, and tourist buses are forbidden, causing travel agencies to change routes and itineraries, resulting in the Yangjiajie ropeway being isolated and closed from the core areaAs a result, the number of Yangjiajie ropeway ticket buyers decreased by 11 in 2018.

7%.

In July 2018, tickets for Zhangjiajie Wulingyuan attractions (including environmentally-friendly car tickets) were reduced from 245 yuan in the high season / 120 yuan in the low season to 225 yuan in the high season / 115 yuan in the low season, down 8%.

The unit price of environmentally friendly bus tickets decreased from 57 yuan / person to 51 yuan / person, down 13%, which affected the income of environmental protection passenger operation industry1.

70 ppm, a decrease of 15 per year.

15%.

Zhangjiajie China Travel has also been affected by this policy to close the business of the floor-to-ceiling retail department, with revenue falling by 28.

27%.

The ancient city of Dayong is expected to open this year, which is expected to contribute to the increase in profits.

The main construction of Dayong Ancient City has been basically completed, and the equipment has been booked for production. The core service project of large-scale folk performance “Meeting Dayong” and the flight theater have been basically completed. It is expected to operate in October this year.

The total investment of 淡水桑拿网 Dayong Ancient City Project is US $ 2.2 billion, and the projected annual operating income is 4 after the project is completed.

2.5 billion, with a net profit of 1.

85 billion.The main purpose of the Dayong Ancient City Construction Project is to solve the pain points that are missing from local and internal leisure and entertainment projects, and assist the company to transform from a traditional tourist attraction management unit into a leisure and tourism integrated tourist attraction. After completion, the company’s income structure will help improve.

Profit forecast and investment suggestions: The price reduction of tickets is the starting point for the company’s income reduction in the current period. In the current state of domestic travel downturn, passenger flow has maintained a positive growth, and the nearby business conditions are normal.

With the refinement of the company’s operation and management, the increase in the expense ratio during the period continued to narrow, and the decrease decreased after the non-profit segment was deleted.

The company’s attractions in 2019 plan to receive 715 tourists.

750,000 people, an increase of 19.

99%; plan to complete revenue 5.

400,000 yuan, an increase of 15.

29%.

Adjust 2019/2020, add 2021 profit forecast, EPS is expected to be 0 in 2019-2021.

10/0.

12/0.

12 yuan (originally expected to be 0 in 2019/2020.

13/0.

17 yuan), corresponding to PE of 63/52/52 times, maintaining the “overweight” level.

Risk Warning: 1.

The risk that the passenger flow in the scenic area is affected by force majeure; 2.

Dayong ancient city project progress is less than expected risks, etc.