\u3000\u30006 Jinyuan Ep Co.Ltd(000546) 00054)
Huangshan Tourism Development Co.Ltd(600054) released the 2021 annual report: ① in 2021, the company achieved 895 million revenue, an increase of 20.84% year-on-year and a decrease of 44.28% compared with the same period in 2019; The net profit attributable to the parent company was 43 million yuan, turning losses into profits compared with – 46 million yuan in the same period last year, a decrease of 87.22% compared with the same period in 2019; Deduction of net profit not attributable to the parent company was -51 million yuan, compared with -102 million yuan in the same period last year. ② In 2021, Q4 company achieved a revenue of 226 million yuan, a year-on-year decrease of 21.06% and 38.49% compared with the same period in 2019; The net profit attributable to the parent company was 19 million yuan, a year-on-year increase of 110833%, an increase of 349.88% over the same period in 2019. ③ In 2021, the company’s net cash inflow from operating activities was 94 million yuan, which turned from loss to profit compared with – 10 million yuan in the same period last year, a decrease of 77.98% compared with the same period in 2019.
In the first half of 2021, the recovery trend was significant, and the number of tourists decreased year-on-year in the second half of 2021, which was greatly affected by the phased epidemic. In the first half of 2021, the company’s operating conditions fluctuated greatly. It began to recover from January to February, recovered rapidly from March to April, fell off the cliff in May, and recovered again in June. The overall number of tourists in the first half of 2021 rebounded significantly compared with 2020. In the first half of 2021, Huangshan Scenic Spot received 981000 tourists, a year-on-year increase of 90%, and the number of tourists has recovered to 60.40% in the same period of 2019; Cableways and cable cars transported a total of 2.044 million tourists, a year-on-year increase of 104.5%, and the number of tourists has recovered to 62.56% in the same period in 2019. In the second half of 2021, the epidemic spread in many places and rounds affected the scenic spot, and the number of tourists decreased. Huangshan Scenic Spot received 693000 tourists, a year-on-year decrease of 30.3%, and the number of tourists returned to 36.94% in the same period in 2019; Cableways and cable cars transported 1577000 tourists, a year-on-year decrease of 26%, and the number of tourists returned to 38.35% in the same period in 2019. Although the number of tourists in the second half of the year was greatly affected by the epidemic, the number of tourists in the whole year still recovered. From the whole year of 2021, Huangshan Scenic Spot received 1.674 million tourists in 2021, with a year-on-year increase of 10.76%, and the number of tourists recovered to 47.82% in 2019; Cableways and cable cars transported 3.621 million tourists, a year-on-year increase of 15.60%, and the number of tourists returned to 49.06% in 2019.
The gross profit margin of Huizhou cuisine business increased, and the cableway and cable car business maintained a high gross profit margin. In 2021, the gross profit margin of the company’s hotel business, Huizhou cuisine business, cableway and cable car business and tourism service business increased, of which the gross profit margin of hotel business was 7.55%, with a year-on-year increase of + 1.77pct; The gross profit margin of Huizhou cuisine business was 29.63%, a year-on-year increase of + 17.86pcts; The gross profit margin of cableway and cable car business was 74.52%, with a year-on-year increase of + 1.98pct; The gross profit margin of tourism service business was 6.55%, with a year-on-year increase of + 1.12pct. The gross profit margin of the company’s scenic spot business decreased. In 2021, the gross profit margin of scenic spot business was 20.39%, a year-on-year increase of -11.13pcts.
The company’s sales expense and management expense ratio decreased, while the financial expense ratio increased. In 2021, the company’s sales expense ratio was 33.16%, with a year-on-year increase of -1.77 PCT, compared with -1.76 PCT in the same period in 2019. The change in sales expense ratio was mainly due to the decrease in advertising expenses. The management expense ratio in 2021 was 33.16%, with a year-on-year increase of -6.93pct, compared with + 14.26pcts in the same period in 2019. The change of management expense ratio in recent years is small, and the change of management expense ratio is mainly caused by the fluctuation of revenue. The financial expense rate in 2021 was 0.03%, with a year-on-year increase of + 1.87pct, compared with + 0.52pct in the same period in 2019. The change in the financial expense rate was mainly due to the interest expense of new lease liabilities in 2021 due to the implementation of the new lease standards.
Profit distribution plan: the company plans to distribute a cash dividend of RMB 1.02 (including tax) to all shareholders for every 10 shares, and the dividend of B shares is distributed in US dollars. In total, it plans to distribute a cash dividend of RMB 74 million, accounting for 171.14% of the company’s net profit attributable to the parent company in 2021.
Investment suggestion: the company will develop multiple business forms, promote wide area tourism layout, develop internet live track, and empower the company’s platform, brand and management system. Optimistic about tourism products, channel upgrading and digital empowerment to jointly boost the company’s operation and post epidemic repair. In addition, the company’s Huizhou cuisine business has opened a national multi-point layout, and the overall revenue is less affected by the local epidemic, which is expected to continue to bring performance increment to the company. Considering the short-term impact of the epidemic, we believe that the company will make efforts after the end of the epidemic. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 48 / 255 / 354 million yuan, with a corresponding PE of 174x / 33x / 24x. It will be covered for the first time and given a “recommended” rating.
Risk warning: repeated epidemic risk, market competition risk, and the progress of vaccination / specific drugs is not as expected.
