Zhangjiajie (000430) 2019 First Quarterly Report Review: Traffic Improvement Drives Passenger Flow Growth, Focuses on Dayong Ancient City Opening in October

Zhangjiajie (000430) 2019 First Quarterly Report Review: Traffic Improvement Drives Passenger Flow Growth, Focuses on Dayong Ancient City Opening in October

Investment Highlights Event: The company announced that it realized revenue of 54.27 million in the first quarter of 2019, an increase of 4 every quarter.

At 06%, the net profit attributable to mothers was maximized at 8.29 million yuan, reducing losses by 44 per year.

27%, net profit after deducting non-return to mother increased by 12.31 million yuan, tens of losses reduced by 20.

94%, EPS is -0.

02 yuan / share.

  Opinion: The reduction in ticket prices has reduced the performance of passenger transport and travel agencies, and the hotel business has continued to decline.

In the total number of reports, due to the impact of reduced ticket prices, environmental passenger transport, travel agency business revenues decreased by 24.

89% and 10.

68%. In addition, the hotel business continued to decline, and the increase in revenue fell 13.

89%, resulting in a drop in revenues4.

At 06%, other businesses were affected by the improvement in traffic, and they have achieved an increase in growth, especially the Yangjiajie ropeway revenue surged42.


  Benefiting from the improvement of traffic, the passenger flow of attractions has grown significantly.

Wulingshan Avenue, which connects the urban area of Zhangjiajie City and the core scenic spot of Wulingyuan, was opened to traffic at the end of last year. Yangjiajie Avenue was opened to traffic before the Spring Festival this year. The improvement in traffic has driven passenger growth.

480,000 people / + 7.

52%, but due to ticket price reductions and preferential ticket policies, the passenger unit price fell by 30%, Baofeng Lake 8.

820,000 people / + 19.

35%, Shili Gallery sightseeing tram 18.

370,000 people / + 25.

05%, Yangjiajie ropeway 14.

820,000 people / +74.

35%, passenger traffic has grown significantly.

  Optimized income structure, gross profit margin increased, and expense ratio was stable.

Reported growth rates, high gross margin prospects Business revenue growth has significantly increased gross margin1.

66 points to 10.

10%, the expense ratio is substantially stable, the overall expense ratio is 36.

48%, 0 in ten years.

03pct, of which the sales expense ratio is 5.

24% / + 0.

83pct, management expense rate 29.

30% /-1.

24pct, financial expense ratio 1.

94% / + 0.

38pct; In addition, the company’s investment income increased by 3.15 million yuan, increasing performance.

  Dayong Ancient City project is expected to be delivered and operated in the fourth quarter of this year.

The main construction of the project has been basically completed, the equipment has been booked for production, and the core service project of large-scale folk performance “Meeting Da Yong” and the flight theater have been basically completed. The company is expected to put it into use in October 19;”Eating, living, travelling, purchasing, and entertainment” in one integrated tourist comprehensive leisure area, built into the new urban cultural and leisure landmark in the central city of Zhangjiajie, is expected to become the company’s new growth point.

  Profit forecast and investment grade: Since 17 years, the company has been subject to factors such as road construction in Wulingshan Avenue and continuous passenger flow in Yangjiajie. The business performance is average, which can reduce traffic and improve landing.) Attendance at tourist attractions increased by 19.
99%), the combined fundraising 南宁桑拿 and investment projects are expected to form a new growth point this year, and the EPS is expected to be 0 in 19-21.


14 yuan / share, closing prices on April 26 corresponding to PE are 74/61/45 times, maintaining the level of “prudent increase”.

  Risk reminder: The price of passenger trains, tickets and ropeways is lower than that of Dayong Ancient City.