22/03/2020

Changbai Mountain (603099): Steady growth in performance and continuous improvement in operations
The event company released three quarterly reports, and the first three quarters achieved revenue3.850,000 yuan, an increase of 0 in ten years.40%, net profit of return to mother 8213.920,000 yuan, an increase of 6 in ten years.59%. Brief comment on the steady growth in performance and stable operation The company achieved net profit of 8,213 in the first three quarters.920,000 yuan, an increase of 6 in ten years.59%, the net profit of non-attributed mothers was 81.27 million yuan, an annual increase of 5.74%, performance still maintained a steady growth trend.The gross profit margin for the first three quarters was 41.02%, ten years +0.32pct.The gross profit margin of Q3 is 59.35%, year -1.63pct, generally stable.On the expense side, the company’s sales expense ratio for the first three quarters was 2.86% every year -0.04pct, management expense rate 7.86% every year -0.96pct, financial expense ratio is 0.46%, ten years +0.05pct.The expense-side sales expense ratio decreased slightly, and the management expense ratio decreased by a subdivision, which also reflects the performance of the company’s cost control measures, and the financial expense ratio increased slightly.The cash paid for the purchase and construction of fixed assets in this period decreased by 50 from the beginning of the period.58%, mainly due to the decrease in investment in various projects under construction, and the cash payment for investment decreased by 67 from the beginning of the period.84%, bank loans were downgraded by 70.8%.Overall, the company’s operations remained stable, the overall peak season, and the cost control achieved some performance. In the first half of the year, the operations of its subsidiaries improved, and the cultural tourism project extended its development.Tianchi Hotel’s current business consists of the “Crown Holiday Hotel” and the Volcano Hot Spring Hotel, with revenue of 1647 in the first half of the year.620,000 yuan, net profit -311.290,000 yuan, the overall reduction of 46.65%, mainly due to strict control fees; Lanjing Hot Spring achieved a net profit of -144.750,000 yuan, mainly affected by the maintenance and overhaul of the hot spring pipeline; Tianchi International Travel Service realized revenue of 514.920,000 yuan, an increase of 104 in ten years.03%; Tianchi Consulting achieved revenue of 2393.The net profit of 880,000 yuan was realized. The main reason is that the major shareholders implement the cost coverage method for the company’s related management business and give recognized support to help Tianchi Consulting achieve better development and transition in management business.In June of this year, the company issued an announcement on the public offering of convertible bonds, and the proposed scale of funds to be issued does not exceed 3.7.5 billion is expected to be mainly used for the construction of the Changbai Mountain Forest Recreation Town-Squirrel Tribe Project.In addition, the company is also making related investments in the cultural field, and it is expected to improve the comprehensive layout of cultural tourism projects in the future. Endowment of high-quality ice and snow tourism, core improvements help growth The company has earlier domestic high-quality ice and snow tourism resources and endowments, in line with the development opportunities and trends of the Beijing Winter Olympics in 2022, and the potential of ice and snow sports and tourism to increase the potential in the next few yearsWill deeply benefit the growth of the industry.The logic of internal and external improvement of the company is still established, internal control fees, improvements in the operation of subsidiaries, the steady and gradual progress of various projects have been gradually verified, and large shareholders provide adequate support to the company.After part of the attraction tickets are injected into the listed company, after nearly two years of cultivation, the logic of future performance is still established.The changes in external transportation factors in the past two years may also become the 重庆耍耍网 core factors that help the company’s rapid growth. The expansion of the airport, the opening of the high-speed rail, and the change of travel time from major internal cities to attractions are expected to improve the company’s passenger flow.Changbai Mountain Scenic Area itself is a supplement to the tourist capacity. At present, there is still a breakthrough in passenger flow to enhance the space and potential, extend the quality tourism resources of Changbai Mountain Scenic Area, and the advantages brought by the attributes of leisure and vacation. After the release of many factors in the future, we expect better development. Investment suggestion: We believe that the company’s profit side maintains a steady growth trend, the operating conditions continue to improve, the various businesses and subsidiaries continue to 武汉夜生活网 optimize, and the major shareholders strongly support it. In the later stage, the company will benefit from the continuous advancement of management output business and the practical improvement of traffic conditions. Internal and external measuresThe positive trend continues, and the long-term benefits of policies and the development of snow and ice tourism. It is expected that EPS for 2019-2021 will be 0.33, 0.44, 0.52 yuan, currently the corresponding PE is expected to be 29X, 22X, 18X, maintaining the “buy” level. Risk reminders: The construction of the hot spring project is less than expected; the hotel operation performance is lower than expected; the surrounding transportation construction and development is lower than expected; the situation in Northeast Asia or policy factors changes.