Huangshan Tourism (600054) Semi-annual Report 2019 Review: High-speed Rail Opens to Help Passenger Flow Growth Midline Focus on Management Improvement and Resource Integration

Huangshan Tourism (600054) Semi-annual Report 2019 Review: High-speed Rail Opens to Help Passenger Flow Growth Midline Focus on Management Improvement and Resource Integration
The performance of the interim report was 23%, and the non-deductible performance was stable. In line with expectations in the first half of 2019, the company achieved revenue of 7.2.8 billion / + 6.77%; return to mother’s performance1.68 ppm / -23.19%, deducting non-performance slightly increased by 1.60%; EPS0.23 yuan, in line with expectations.In Q2 single season, the company’s revenue / performance / deductible non-performance appreciation6.19% / 2.58% / 8.67%, the improvement of passenger flow under the opening of the high-speed rail helped to stabilize the performance of ticket prices. The ticket business has been under pressure due to the price reduction. The high-speed rail service has helped improve passenger flow in the first half of the year. Benefiting from the opening of the Hangzhou-Huangzhou high-speed rail and ticket price reductions, Huangshan attractions received 1.62 million tourists, which has increased by 9 times.6%.From September 28 last year, the peak season tickets replaced 190 yuan / -17.4%, the discount rate is reduced by 13 when the effective ticket is reduced.2%; ticket revenues decreased by 4.8%.Benefiting from the increase in passenger flow, the ride rate increased to 2.01 times / + 3.0% and ropeway discounts decreased, and the passenger flow and revenue of ropeway increased by 12 respectively.9% / 16.7%.With increased passenger flow, hotel and travel agency revenues each increased by 20.3%, 22.8%.Taken together, the company’s gross profit margin increased by 0.59 points, the gross profit margin of the ropeway increased by 1.13-point ct drive, and gross margin of tickets dropped by 1 under price reduction.74pct, the gross profit margin of travel agencies and hotels decreased by 1 as labor costs increased98/1.39 points.During the period, the rate dropped slightly.15pct, which is mainly financial, and the management expense rate decreased by 0.86pct / 0.27pct, while the sales expense ratio increased by 0.97 points. The improvement of transportation and the integration of company resources are expected to promote growth and take into account the progress of ticket price reductions. On August 23, the State Council issued an Opinion on Further Stimulating Cultural and Tourism Consumption Potential.However, due to the opening of the Huanghang high-speed rail at the end of December last year, it is expected that the growth of passenger flow in the past two years will continue to support, and some boots will hedge pressure on ticket prices.In addition, under the pressure of attraction ticket price reduction, the company’s positive pressure is the driving force to actively improve quality and efficiency: the first date to pay for a face in a mountain scenic spot, and travel through Huangshan in one yard.Trial tickets, ropeway tickets, and interchange tickets are sold together to improve 杭州夜生活 the efficiency of ticket purchase. At present, Huishang Hometown Hefei Store, Yuncheng Hotel, Yuping Retail Store, etc. have been delivered and operated; Huashan Mysterious Cave Project has started construction; SaifuThe Fund has invested a total of 15 projects; projects such as combined tourism + small towns / supply chains are advancing the preliminary work, and the integration of medium and long-term resources continues to accelerate. Risks suggest that ticket prices, natural disasters, macroeconomic pressure, state-owned enterprise reform or regional resource integration may exceed expectations. Pay attention to the progress of ticket price reduction, high-speed rail opening and regional integration to provide power, and maintain “overweight” to maintain EPS0 in 19-21.53/0.57/0.61 yuan, corresponding to PE17 / 16/15 times.Although the pressure to reduce ticket prices still exists, considering the opening of the Huanghang high-speed rail is expected to accelerate the growth of local passenger flow, and the company is actively upgrading domestic products + inventory transformation, plans to accelerate external acquisitions and resource integration, and maintain the “overweight” rating.