\u3000\u30 Shenzhen Fountain Corporation(000005) 24 Guangzhou Lingnan Group Holdings Company Limited(000524) )
The company released its annual report for 2021. In 2021, the company achieved a revenue of 1.526 billion yuan, yoy-18.71%; The net profit attributable to the parent company was – 128 million yuan, a year-on-year decrease of 46.85%; The net profit attributable to the parent company was -185 million yuan, a year-on-year decrease of 28.85%. In the fourth quarter of 2021, the company achieved a revenue of 335 million yuan, yoy-31.96%; The net profit attributable to the parent company was – 29 million yuan, a year-on-year decrease of 67.91%. The company achieved substantial loss reduction throughout the year.
Key points supporting rating
The epidemic has repeatedly put pressure on revenue, reducing costs, increasing efficiency and reducing losses year-on-year. Affected by the stagnation of outbound tourism, the melting of inter provincial tourism and the repeated epidemic, the company’s revenue reached 1.526 billion yuan, yoy-18.71%. Excluding outbound tourism business, the company achieved revenue yoy + 5.72% in 2021. In 2021, in order to cope with the impact of the epidemic, the company actively took various measures, such as strictly controlling costs, increasing R & D innovation and marketing, reshaping the business profit model, and finally realized the net profit attributable to the parent company of – 128 million yuan, a year-on-year decrease of 46.85%.
Steady leadership, financial health, technology enabled business development. At the end of 2021, the company’s asset liability ratio was 28.36%, and monetary funds accounted for 44.92% of the total assets. The financial structure and cash reserves were stable, so that the company could deal with the adverse effects of the epidemic for a long time. During the reporting period, the company promoted the digital construction in its business, and several R & D projects around “easy to start” have been completed and accepted, which may improve the efficiency of operation management and supply chain coordination, and support the opening of new businesses and new markets. At the same time, the company promotes the application of information technology in the accommodation industry. After the implementation of a variety of intelligent systems, it may continue to enable enterprises to reduce costs and increase efficiency.
Pay close attention to demand, innovate supply and continue to promote regional expansion. During the reporting period, Guangzhi travel innovated product supply according to travel demand, and the iterative renewal rate of new products reached 62%. In recent years, guangzhilv has also completed the strategic layout of the country’s six major operation centers, and actively established guangzhilv yuejing and guangzhilv Lvyun automobile companies after the outbreak of the epidemic, so as to deeply cultivate tourism destination services and realize diversified development. Its hotels are also actively expanding new business, such as takeout products, prefabricated dishes, new reception mode of high-end business, etc. The hotel management business of the company accelerated brand expansion, expanded 28 management projects, and added more than 11000 rooms. During the reporting period, Guangzhou SASAC plans to jointly restructure Guangzhou business holding and Lingnan group, so as to effectively integrate Guangzhou business travel industry resources, realize cultural tourism resource sharing, give better play to synergy and improve anti risk ability, or effectively improve the consumption frequency of the company’s products in the future.
Valuation
According to the company’s annual report for 21 years, the adjusted EPS for 22-24 years is 0.40/0.67/0.71 yuan, and the corresponding P / E ratio is 30.6/18.4/17.2 times. The repeated epidemic has put pressure on the company’s performance, and the company’s outbound tourism business, which was once the focus of revenue, has not recovered. However, the company actively pays attention to new demand, innovates supply, promotes the company’s scientific and technological empowerment, reduces cost and increases efficiency, and the performance is expected to recover rapidly after the epidemic improves, so it maintains the overweight rating.
Main risks of rating
Repeated epidemic risk, market competition risk and the risk that the recovery of outbound tourism is less than expected.
