CYTS (600138): Gubei, Wuzhen improved greatly compared with the integrated marketing performance
Event: On October 29, China Youth Travel Holdings Co., Ltd. released the third quarter report of 2019.
In the first three quarters of 2019, the company achieved operating income of 95.
45 ‰ / increase by 6.
90%; net profit attributable to mother 5.
45 ‰ / down 0.
33%; net profit after deduction 4
21 ‰ / down 5.
43%; basic return is 0.
7527 / Reduced by 0.
Among them, the company achieved operating income of 36 in Q3 2019.
92 ppm / increase of 9.
83%; net profit attributable to mother 1.
$ 6.3 billion / growth 14.
77%; net profit after deduction to mother 1.
63 ppm / increase of 16.
98%; basic profit income is 0.
22 / grow 12.
Comments: 1. Q3 of functional business improved month-on-month, and China Youth Union achieved outstanding performance.
Q3 company revenue increased by 9.
8%, of which strategic investment and Shanshui Hotel revenue grew rapidly; attributable net profit increased by 14.
8%, mainly in Q3 Wuzhen, Gubei Water Town improved month-on-month, and the performance of China Youth League was significantly increased.
2. The passenger flow in Wuzhen rebounded and the performance improved slightly.
Q3 Wuzhen received 2.85 million tourists / increased 5.
7%, faster than the first half (+1.
63%), Q3 passenger unit price was 181 yuan / down 6.
24%, mainly since September 20 last year, the entrance ticket to Wuzhen’s east and west gates decreased by 10 yuan each, and Q3 achieved an income of 5.
15 ppm / down 0.
9%, achieving a net profit of 1.
48 ppm / increase of 2.
51%, profit margin increased by 1 unit.
3. The decline 深圳桑拿网 of passenger flow in Gubei Water Town narrowed, and the unit price of passengers kept increasing.
In the first three quarters, Gubei Water Town received 191 tourists.
350,000 person-times / down 6.
75%, affected by intensified competition pressure from large-scale events in Beijing, including 90 in the third quarter.
650,000 person-times / down 4.
38%, Q3 single quarter improvement.Q3 Gubei Water Town passenger unit price is 362 yuan / increase 2.
4%, mainly due to increased revenue conversion rate.
Under the comprehensive influence, Q3 Gubei Water Town realized operating income3.
28 ppm / drop 2.
4. Integrated marketing increased significantly, and the decline in landscape hotels narrowed.
The income of China Youth League in Q3 was 5.
97 ‰ / down 5.
1%, net profit 1062 million / increase 218%, mainly due to the company’s participation in 厦门夜网 many integrated marketing activities such as the World Garden Fair; the overall revenue of the hotel market, Shanshui Hotel revenue growth in the first three quarters.
47%, affected by the opening of new stores, net profit fell by 7.
89%, an improvement in the third and third quarters; in terms of strategic investment, the overall operating income of Chuangge Technology and Fengcai Technology increased.
5. The gross profit margin was flat, and the expenses during the period dropped slightly.
Q3’s gross profit margin was 23.
4% / annual flat, sales expense expenditure 9.
7% / down 0.
38pct, overhead cost 6.
1% / 0 per year.
53pct, mainly due to the increase in labor costs, financial expenses 0.
7% / down 0.
37pct, under the comprehensive influence, the net interest rate is 6.
4% / 0 per year.
6. Investment suggestion: Q3 Wuzhen, Gubei Water Town, Shanshui Hotel’s operating performance improved month-on-month, and the performance of China Youth League was increased.
At present, Wuzhen and Gubei still have remaining reserve space to be dispatched. It is expected that the revenue structure will continue to be optimized. We predict that the company’s net profit attributable to mothers will be 6 in 2019-2021.
0 ppm, corresponding to PE’s estimate of 14x / 12x / 11x, maintaining the “Highly Recommended-A” investment rating.
Risk reminders: The passenger flow in Wuzhen and Gubei Water Town is not up to expectations; the government subsidy has decreased significantly; the demand for integrated marketing business has decreased.