\u3000\u30 Zhongyan Technology Co.Ltd(003001) 44 Songcheng Performance Development Co.Ltd(300144) )
Songcheng Performance Development Co.Ltd(300144) released the annual report of 2021: in the whole year, the company achieved an operating revenue of 1.185 billion yuan / yoy + 31.27% (45% of the revenue in 2019); The net profit attributable to the parent company is 315 million yuan / yoy + 117.98%; Operating profit 372 million yuan / yoy + 121.92%; The total profit is 344 million yuan / yoy + 119.79%; Net operating cash flow is 750 million yuan / yoy + 90.50%. The gross profit margin of the company in 21 years was 51.08%, with a year-on-year increase of -9.85pct; The net interest rate was 25.54%, with a year-on-year increase of + 221.30pct. 21q4 single quarter: the company achieved a revenue of 169 million yuan / yoy-40.43%, and the net profit attributable to the parent company was – 117 million yuan.
The on-site interpretation business is deeply under pressure due to the impact of the epidemic, and the business situation is bright during the May Day / National Day holiday. In the 21st year, the income of Hangzhou / Sanya / Lijiang / Jiuzhai / Guilin / Zhang Jia Jie Tourism Group Co.Ltd(000430) / Xi’an qiangu scenario area was + 69% / + 16% / – 15% / + 77% / + 61% / + 78% / – 33% respectively, and that of Hangzhou / Sanya / Lijiang / Guilin / Zhang Jia Jie Tourism Group Co.Ltd(000430) respectively recovered to 53% / 38% / 35% / 57% / 49% in the same period in the 19th year. Despite the impact of the epidemic, the overall operation has been under pressure for 21 years, and the business performance of many places has been brilliant during the holidays: the song city of Hangzhou has actively innovated the performance mode and content. During the Spring Festival, the May Day holiday and the National Day golden week, the five indicators of the total number of people received, the number of performances, operating income, the proportion of individual tourists and the length of stay of tourists may exceed the level of the same period in 2019, reaching a record high. Shanghai qianguqing achieved an annual income of 73.046 million yuan, of which 179000 tourists were received during the May Day holiday, with a maximum of 20 performances per day, with an income of more than 25 million yuan, and the guest unit price reached a new high in all scenic spots in song city.
Cost & R & D: the company has achieved remarkable cost control, accelerated R & D and improved product customer experience. The company’s sales / management / Finance / R & D expenses were 3.98% / – 11.07% / 92.57% / 9.84% respectively compared with the same period of 20 years; The rates of sales / management / R & D expenses were 5.6% / 25.1% / 3.48% respectively, down 1.5pct/10.97pct/0.67pct respectively. During the closing period, the amount originally belonging to the operating cost is included in the management expenses, and the company has achieved remarkable results in actually controlling the management expenses; The increase in the decline of financial expenses is mainly due to the implementation of the new leasing standards during the reporting period; In order to improve management efficiency and product customer experience, the company has developed 31 new projects in 21 years and achieved the expected results. Hangzhou Songcheng has passed the national high-tech enterprise certification.
Peel off the Zhuhai project, go to battle with light equipment and build a platform for cultivating internal skills and strength. On April 22, 2022, the company announced that it planned to transfer 100% equity of Zhuhai performing arts Valley project to Songcheng group at a consideration of 458 million. In the future, Songcheng group will be responsible for the construction and incubation of Zhuhai project, Songcheng Performance Development Co.Ltd(300144) provide entrusted management and brand authorization services. After the opening of the project, according to the operation cycle, the fees will be charged at 80 million / 100 million / 120 million respectively in the first three years. Equity transfer helps to optimize the company’s financial structure and investment model, transfer investment risks and enhance business ability. In addition, the company continues to promote the platform construction, integrate and optimize the industrial layout, project layout, asset light expansion and other aspects, and build a one-stop industry comprehensive information platform to lay the foundation for the long-term development of the company.
Investment suggestion: considering the impact of repeated epidemic on the company’s operation, reduce the profit forecast. However, considering that the company is the leading target of scarce scenic spots that can be copied in different places, its growth can still be expected in the long run. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 6.5/13.1/1.76 billion, and the corresponding PE will be 55 / 27 / 20 times respectively, maintaining the “recommended” rating.
Risk warning: the epidemic situation repeatedly exceeded expectations, the recovery of stock projects was less than expected, and new projects were less than expected
