\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 749 Tibet Tourism Co.Ltd(600749) )
Event: the company released its annual report for 2021. During the reporting period, the company achieved a total operating income of 173 million yuan / + 37.97%, an operating income of 163 million yuan / + 36.45% after deducting the business income irrelevant to the main business and the income without commercial substance, a net profit attributable to the shareholders of the listed company of -8.0639 million yuan / – 270.02%, and a non net profit attributable to the parent company of -161875 million yuan.
Comments:
The passenger flow of the whole year recovered to be higher than that of the same period before the epidemic. In 2021, the company received about 2.22 million visitors, returning to 105% of that before the epidemic. With the easing of the epidemic in China, the company pays equal attention to Wuxi Online Offline Communication Information Technology Co.Ltd(300959) marketing, and the number of tourists received from January to July 2021 exceeds that in the same period before the epidemic. At the end of July, the epidemic situation in China was repeated, and the inter provincial circuit breaker policy led to the lack of prosperity in the summer peak season, which hindered the overall recovery of passenger flow in the second half of the year. Before the epidemic, the Shenshan holy lake scenic spot in Ali area was dominated by foreign guests and pilgrims. The epidemic blocked entry and exit, but the reception of Chinese tourists increased.
The operating revenue of core scenic spots reached 105% in 2019. The company achieved annual revenue of 173 million yuan, a significant increase of 37.9% year-on-year in 2020, of which the revenue of core scenic spots exceeded that of the same period in 2019. By industry, scenic spots, tourism services and tourism business account for 81%, 8% and 6% respectively. Scenic spot business is still the main source of income of the company. In 2021, the company’s net profit attributable to the parent company suffered a slight loss, which was mainly affected by three aspects: 1. Withdrawing bad debt reserves of 9.29 million yuan; 2. Some projects under construction stopped adding 3.18 million yuan of depreciation and amortization; 3. Due to the acquisition of the former Lulang Scenic Spot Development Co., Ltd., the new goodwill impairment loss was 4.93 million. The above three items total 17.4 million.
The overall gross profit margin was 38.66%, slightly improved compared with 2020. The operating cost increased by 29.04 million yuan over the same period last year, mainly due to the increase in the amortization of fixed costs involved in asset transfer and reclassification, the increase in fixed costs caused by new assets, and the discontinuation of some supporting policies. By industry, the gross profit margins of scenic spots, tourism services and tourism business were 42.96% / + 1.83pct, 20.64% / + 7.56pct and -11.38% / -32.13pct respectively (the data by industry were adjusted). The gross profit margins of scenic spots and tourism services were improved, and the business streets were still in the cultivation period, which was greatly affected by the epidemic situation.
During the period, the cost rate decreased significantly. During the reporting period, the total expense rate was 38.01% / – 13.4pct, which was significantly lower than that in 2020. Among them, the management expense rate is 32.86% / – 10.1pct, which is mainly due to the changes between the fixed costs involved in asset transfer and reclassification, the changes in labor costs due to the adjustment of management institutions, and the increase in intermediary costs involved in asset restructuring. The sales expense rate was 6.09% / + 1.14pct, which was mainly due to the increase of labor costs and marketing expenses brought by the introduction of professional marketing team. The financial expense ratio is -0.94% / -4.44pct, and the decrease of financial expense is mainly due to the increase of interest income generated by free funds and raised funds.
Traffic continued to improve and the proportion of individual passengers increased significantly. In recent years, the transportation in Tibet has developed rapidly. With the construction and opening of Lalin railway and national highway 219 and the operation of the new terminal of Lhasa Gongga Airport, the transportation conditions in Tibet have been further improved. After the completion and opening of Sichuan Tibet Railway in 2026, the transportation into Tibet will achieve leapfrog development. Under the influence of traffic improvement and covid-19 epidemic, free travel tourists are increasing day by day. During the Peach Blossom Festival in Nyingchi, may day and National Day holidays, the reception volume of individual tourists in the company’s own scenic spots has been basically the same as that of the team.
Theme marketing promotes brand awareness, digital operation improves service quality. Facing the trend of increasing the proportion of free travel, on the one hand, the company has improved the popularity of the scenic spot through theme marketing activities. The creation of characteristic activities such as Linzhi Peach Blossom Festival in April, basongcuo international mountain bike race around the lake in May and Cailin festival in October have brought passenger flow and exposure to the company. On the other hand, the company makes full use of the digital platform to obtain effective information through data precipitation, improve tourist service experience, improve internal management efficiency and quickly obtain business demands.
Investment suggestion: the company has core tourism resources in Tibet. We are optimistic about the rapid growth of passenger flow brought by the continuous improvement of transportation in Tibet, the sustainable growth brought by the company after management efficiency improvement and product upgrading and innovation, the continuous repair of the impact of the epidemic, and give the company a “buy” rating.. It is estimated that Tibet Tourism Co.Ltd(600749) will realize the net profit attributable to the parent company of 23.11 million yuan, 38.09 million yuan and 54.58 million yuan from 2022 to 2024, with a year-on-year growth rate of – 386.6%, 64.8% and 43.3%, EPS of 0.1 yuan / share, 0.17 yuan / share and 0.24 yuan / share respectively, corresponding to 122 times, 74 times and 52 times of PE respectively.
Risk tips: systemic risk, epidemic risk, policy promotion, lower than expected business conditions and other risks.
