China Cyts Tours Holding Co.Ltd(600138)
Minutes of investor research meeting
Time: March 31, 2022
Method: telephone research receptionist: Fan Siyuan, Secretary of the board of directors attended: China Industrial Securities Co.Ltd(601377) , Huatai Securities Co.Ltd(601688) , China Merchants Securities Co.Ltd(600999) and other research content summary: 1 What are the main reasons for the rise of Gubei’s customer unit price? After the passenger flow in gubeishui town recovered, the passenger unit price did not decrease, mainly because the hotel sales were very good in 21 years, and the proportion of overnight guests has been very good. 2. What is the business format or business model of Puyuan? Affected by the epidemic, we hope to launch it at a more appropriate time. Because the largest shareholder of Puyuan is the local municipal government. According to the plan of the local government, it is a 22-year trial operation, but it still depends on the persistence of the epidemic. In terms of project composition, Puyuan will carry out layout step by step. Puyuan’s own foundation is more commercial, and the passenger flow may be more, but the details still have to wait until after opening. 3. last year, Beijing Shenyang high speed rail opened to traffic, and the opening of Universal Studios, did it have a driving force for Gubei, or did the world have a linkage with Gubei? First of all, Universal Studios will not have an impact on Palaearctic, and there is a great difference in the composition of passenger flow. Second, on the linkage between Gubei and globegroup, because there are not many linkage between epidemic management and globegroup’s just opening, Gubei is still based on local customers. The biggest advantage of globegroup is that it drives Beijing as a national destination to attract passenger flow, which has a positive effect on Gubei water town. For a long time, Beijing still has a lot of historical and cultural tourism resources. The linkage between foreign passenger flow and Gubei water town is mainly the Great Wall resources. The difference of passenger flow brought by Universal Studios is related to the difference between Gubei water town and differentiated passenger flow, but the actual analysis is still needed after the epidemic. 4. Government subsidies in Wuzhen town decreased significantly last year. Will they recover in the future? The government subsidy is related to the financial contribution to the local government in recent years, so it is normal for the subsidy to be low in 21 years. The future depends on the contribution of taxes and other aspects. This figure is uncertain.
5. Wuzhen is more inclined to national scenic spots, worried about the impact of consumers’ avoidance of areas with high traffic flow in the post epidemic era on cultural tourism groups? Gubeishui town is dominated by passenger flow in the suburbs of Beijing, Tianjin and Hebei, which is less affected by the epidemic. Wuzhen mainly comes from the Yangtze River Delta. At present, Wuzhen is greatly affected by the epidemic, and the local passenger flow cannot be supported. After the recovery of the epidemic, Wuzhen still has great confidence in the recovery. The recovery of passenger flow during the stable period of the epidemic last year can confirm this view, and the recovery of passenger flow from April to July of 21 is better. Therefore, after the epidemic situation is stable and the supervision is relaxed, Wuzhen has strong resilience to recovery. Wuzhen has great influence in the country, and the post epidemic vacation demand is consistent with Wuzhen’s positioning, so it is more confident. 6. Has the company optimized the operation of Wuzhen in recent years? Even if the passenger flow cannot recover to the peak, it is still well reflected in terms of profit? First point: from the data, in recent years, the proportion of revenue recovery is higher than that of passenger flow recovery, which is mainly due to the recovery of overnight guests, which is a good direction for improvement in the future. Second point: the company is also actively exploring how to tap the potential value of passenger flow and increase consumption scenarios. 7. What is the future trend of Wuzhen tickets? First, from the current policy perspective, there is no clear requirement for the pressure to further reduce prices. Second, in terms of the company’s layout, in the short term, the company has no plan to take the initiative to reduce the price in order to obtain more customers. Because the total passenger flow in Wuzhen is large, there is no need to attract passenger flow through tickets, but to further reduce the proportion of tickets through content and other consumption methods. At the same time, the existence of tickets is also to ensure the quality of the scenic spot. Therefore, from the perspective of short-term to medium-term layout, tickets are not only a beneficial contribution to Wuzhen’s income, but also a guarantee to ensure the long-term development of the scenic spot in terms of high quality. 8. If there is ticket pressure in Wuzhen in the future, with the increase of scenic spot construction cost, what is the prospect of profit margin? There are several perspectives on profit margin, one is the relationship between income and net profit, and the other is the relationship between income and gross profit. From the perspective of income net interest rate, when the proportion of ticket income decreases, the net interest rate must decline, because there is no direct cost of tickets. Then the net interest rate will be reduced from the intuitive financial effect. From the whole consumption trend, the income of other aspects is increasing, and the proportion of tickets is getting lower and lower, which is an irreversible trend. Although the financial indicators may not be so good-looking, its benefits in business format are greater than those in finance, and there is more room for income growth. 9. After the phased improvement of the epidemic last year, what is the recovery rhythm of the whole domestic group market? The group tour market is gradually decreasing. The trend of individual customization, customization or miniaturization of the whole industry is very good. Therefore, in terms of business format layout, the products are also refined according to these characteristics. Judging from the recovery of this market, once the epidemic situation improves, there will be a rapid rebound in the overall number of tourists. How many travel service providers need to provide services in the middle depends on the ability of each travel agency to adjust its business format and capture market opportunities. At present, the dependence of guests on travel services is reduced. Unless you have distinctive resources, either good service experience, strong IP or other value-added services, it is difficult to obtain medium and high-end guests, which is a trend. From this point, the recovery of the whole travel agency business is a relatively slow process, which may lag behind the recovery of passenger flow in the whole Chinese market. But what will the future be like? There is still a little suspense, but the whole trend will not change.
