\u3000\u3 Shengda Resources Co.Ltd(000603) 136 Jiangsu Tianmu Lake Tourism Co.Ltd(603136) )
The company released the annual report of 2021 and the first quarterly report of 2022: ① in the whole year, the company achieved an operating revenue of 419 million yuan / yoy + 11.86% in 21 years, returning to 83.20% of the revenue in 2019; The net profit attributable to the parent company is 52 million yuan / yoy-6.17%; Deduct non net profit of 43 million yuan / yoy + 51.66%; Operating profit: 87 million yuan / yoy-0.64%; The total profit is 86 million yuan / yoy-0.65%; Net operating cash flow of RMB 1.3-yoy billion / 1.37%. The gross profit margin of the company in 21 years was 50.03%, with a year-on-year increase of -2.57pct; The net interest rate attributable to the parent company was 12.30%, with a year-on-year increase of -2.37pct. ② 22q1 single quarter: the company achieved a revenue of 56 million yuan / yoy-28.05%; The net profit attributable to the parent company was -21 million yuan, compared with -05 million yuan in the same period in 2021.
The epidemic in the second half of the year made the company’s contribution to water world revenue lower than expected, and the scenic spots and hotels recovered rapidly, showing business resilience. In 2021, the company’s product revenue of Shanshui Park / Nanshan bamboo sea / water world / hot spring / hotel / travel agency was 124 / 1.01 / 0.04 / 0.36 / 124 / 08 million yuan respectively, which was + 14.44% / 7.75% / – 68.63% / – 5.16% / + 33.74% / – 14.09% compared with the same period last year. The company’s Water World Park project is mainly opened in summer. Dragged down by the epidemic, its performance contribution in 21 years is lower than expected, while the recovery trend of scenic spot and hotel business is relatively strong.
The gross profit margin of scenic spot and hot spring business is growing rapidly, and the gross profit margin of water world is under pressure. In 2021, 1) the gross profit margin of the company’s scenic spot business was 61.45%, a year-on-year increase of + 4.26pct, mainly due to small changes in operating costs, and the gross profit margin increased significantly due to the growth of revenue; 2) The gross profit margin of water world business was – 171.06%, with a year-on-year increase of – 180.9pcts, mainly due to the high proportion of fixed costs in operating costs and the sharp decline in gross profit margin due to the impact of the epidemic; 3) The gross profit margin of hot spring business was 43.5%, with a year-on-year increase of + 3.72 PCT, mainly due to the decrease of depreciation, logistics, repair, energy and other expenses; 4) The gross profit margin of hotel business was 35.72%, with a year-on-year increase of -15.36pcts, mainly due to the increase of operating costs caused by the projects of “encounter Jiangsu Tianmu Lake Tourism Co.Ltd(603136) ” and “Zhuxi Valley”; 5) The gross profit margin of travel agency business was 4.56%, with a year-on-year increase of -0.20pct, mainly due to the reduction of passenger flow between epidemics.
Endogenous deep excavation, extension force, and the epidemic growth after layout. In 2021, in terms of promoting the construction of endogenous projects, the company steadily promoted the implementation of the project. In case of the operation of Jiangsu Tianmu Lake Tourism Co.Ltd(603136) hotel project, the tourism industry chain was further strengthened; Nanshan bamboo sea upgrading project has been completed, and the tourist experience has been optimized and upgraded; Nanshan Xiaozhai phase II project is being promoted to inject new vitality into Jiangsu Tianmu Lake Tourism Co.Ltd(603136) tourist area. In terms of extension, the company takes the urban agglomeration of five economic circles as the strategic center, develops both light and heavy assets, implements the pace of capital expansion, and realizes extension expansion by means of M & A and brand innovation; It is also considered to develop and manage high-quality tourism resources by investing in new construction according to local conditions.
The state-owned assets platform of Liyang municipal government has become the second largest shareholder, optimizing the company’s ownership structure and enabling long-term development. Mr. Meng Guangcai, the controlling shareholder and actual controller of the company, signed the share transfer agreement in September 2021 and March 2022 respectively, transferring a total of 37860700 shares to Liyang urban construction and development group, accounting for 20.32% of the total shares. After the transfer, the state-owned assets platform of Liyang municipal government became the second largest shareholder of the company. This is conducive to the company’s resource integration and coordinated development, and will make Jiangsu Tianmu Lake Tourism Co.Ltd(603136) a more attractive tourist destination.
Investment suggestions: (1) the Yangtze River Delta has been under pressure due to the impact of the Shanghai epidemic for a short time, but the recovery of tourism, hotel and catering consumption after the epidemic is expected to boost the company’s business; (2) The company has achieved growth through deep excavation of endogenous projects, mergers and acquisitions or investment in new projects; (3) The fixed costs of various businesses of the company are high, and the increase in the number of tourists after the epidemic will make the performance of the company recover rapidly. It is estimated that the company’s net profit attributable to the parent company in 22, 23 and 24 years is 78 / 142 / 172 million yuan respectively, and the corresponding PE is 49x / 27x / 23x, maintaining the “recommended” rating.
Risk tip: the epidemic situation repeatedly exceeded expectations, industry competition intensified risks, and the landing of new projects was less than expected risks.
