\u3000\u3000 China Cyts Tours Holding Co.Ltd(600138) (600138)
The company turned losses into profits in the 21st year, and it is expected to realize the net profit attributable to the parent company of 15 million yuan, yoy + 106.46%, deducting the estimated loss of non attributable net profit of 112 million yuan, yoy + 71.71%.
Key points supporting rating
It is expected that the performance in the 21st year will turn from loss to profit. The company expects to realize the net profit attributable to the parent company of 15 million yuan, yoy + 106.46%, deducting the estimated loss of non attributable net profit of 112 million yuan, yoy + 71.71%. The repeated epidemic and the continuous impact of local prevention and control policies still restrain the business of each sector of the company, but the company actively improves its business level, reduces costs and expenses, and its main business is significantly improved compared with 2020. Wuzhen tourism, the holding subsidiary of the company, received a financial subsidy of 143 million yuan, with an impact on the net profit attributable to the parent company of 71 million yuan.
The business performance of the scenic spot is differentiated, Gubei exhibition is resilient, Puyuan hope is linked, and the performance is innovative. Affected by the Nanjing epidemic in July, Wuzhen’s business recovery slowed down. At the same time, due to the reduction of subsidies, its net profit was impacted to a certain extent. Gubei benefited from the rapid recovery of surrounding tourism, showing strong toughness; It is expected that the holding of the Winter Olympic Games may increase the regional passenger flow in Beijing, and the popularity of Gubei scenic spot is expected to keep rising. Puyuan project is expected to open in 2022 and is expected to develop in linkage with Wuzhen. The company and putefu jointly create immersive performance, which is expected to obtain innovative development opportunities.
China Cyts Tours Holding Co.Ltd(600138) Bolian adheres to digital marketing to turn losses into profits. China Cyts Tours Holding Co.Ltd(600138) Bolian insists on reducing costs and increasing efficiency with smart exhibition, leading brand quality improvement with digital marketing, and providing customers with better services with one-stop integrated marketing services. In addition, the exhibition demand accumulated by the epidemic is expected to be further released in 2022. In the first three quarters of 2021, China Youth Expo union achieved a revenue of 1.135 billion yuan, yoy + 114.55%, and a net profit of 24 million yuan, turning losses into profits year-on-year. On the premise of relatively reducing the impact of the epidemic, the demand for exhibition and conference services is expected to help the business of China Youth Expo union rise to a higher level.
Valuation
According to the performance forecast of the company in 2021, adjust the EPS of the company from 21 to 23 to 0.02/0.68/0.83 yuan, and the corresponding P / E ratio is 563 / 16.8/13.7 times. The spread of the epidemic still has an impact on the company’s business. However, as a comprehensive leading enterprise in tourism, the company has deeply cultivated the upstream and downstream industrial chain of culture and tourism, promoted the endogenous extension in an orderly manner, and still has high-quality growth space in the medium and long term, so it maintains the buy rating.
Main risks of rating
The opening and operation of new scenic spots are not as expected, the tourism competition in China is intensified, and the covid-19 epidemic risk is repeated.
