\u3000\u30 Zhongyan Technology Co.Ltd(003001) 44 Songcheng Performance Development Co.Ltd(300144) )
Key investment points
Event: the company released its 2021 annual report and the first quarter report of 2022 on April 22. In 2021, the company realized an operating revenue of 1184864600 yuan, an increase of 31.27% over the same period last year; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 2678097 million yuan, an increase of 115.15% over the same period last year. In the first quarter of 2022, the company achieved a revenue of 85 million yuan, a year-on-year decrease of 72.16%, and realized a net profit attributable to the parent company of – 39 million yuan, from profit to loss.
Comments:
The company’s revenue increased rapidly in 2021, and the epidemic caused 22q1 to turn from profit to loss. In 2021, the company realized an operating revenue of 1.185 billion yuan, a year-on-year increase of 31.27%; The net profit attributable to the parent company was 315 million yuan, a year-on-year increase of 117.98%; The non net profit attributable to the parent company was 268 million yuan, a year-on-year increase of 115.15%. In the first quarter of 2022, the company achieved a revenue of 85 million yuan, a year-on-year decrease of 72.16%, and realized a net profit attributable to the parent company of – 39 million yuan, from profit to loss. 22q1 China’s sporadic epidemic spread to many provinces and cities. The company’s scenic spots were closed most of the time, and the business was greatly impacted.
Core projects achieved rapid growth. In 2021, Hangzhou Songcheng achieved a revenue of 486 million yuan, a year-on-year increase of 69.36%, and the gross profit margin was 43.45%, a year-on-year increase of 8.55 percentage points; Sanya project achieved a revenue of 148 million yuan, a year-on-year increase of 16.41%, and a gross profit margin of 67.49%, a year-on-year decrease of 9.46 percentage points; Lijiang project achieved a revenue of 116 million yuan, a year-on-year decrease of 14.85%, a gross profit margin of 57.58% and a year-on-year decrease of 17.27%. Guilin, Jiuzhai, Zhang Jia Jie Tourism Group Co.Ltd(000430) , Xi’an projects achieved revenue of 88 million yuan, 44 million yuan, 31 million yuan and 16 million yuan respectively, with a year-on-year increase of + 62.65%, + 75.8%, + 90.45% and – 33.58% respectively. In addition, the Shanghai project, which has been open for only eight months, has achieved a revenue of 74 million yuan. As an urban performance pilot project, it has achieved remarkable results. After the park is closed in winter, it may bring more plays, which is expected to become a new expansion mode of the company.
Maintain recommended ratings. The company’s total operating revenue grew rapidly in 2021. In the first quarter of 2022, affected by the epidemic, many projects closed again, and the short-term performance was under pressure. Referring to the rapid recovery of the company’s Hangzhou project after several Park closures in 2021, the company’s performance elasticity is good, and it is expected to recover quickly after the epidemic is controlled. Transfer the Zhuhai project to the group to supplement the company’s cash flow. In 2022, the company plans to promote the construction of repertoire and content around the Shanghai Songcheng project, and upgrade and improve the “eternal love” series; Promote the transformation of digital scenic spots and enhance the experience of tourists. It is estimated that the company’s earnings per share in 2022 / 2023 will be 0.21 yuan and 0.32 yuan respectively, and the corresponding PE valuation will be 67.12 times and 43.51 times respectively, maintaining the “recommended” rating of the company.
Risk warning. The industry competition intensifies, covid-19 epidemic repeatedly affects the passenger flow, the promotion or transfer progress of projects under construction is less than expected, macroeconomic fluctuations and other risks.
