Sante Ropeway (002159): Focused ropeway leader straightens out the development path

Sante Ropeway (002159): Focused ropeway leader straightens out the development path

Withholding assets and focusing on ropeway main businessAs of the third quarter of 2018, the company adhered to the strategy of lean troops and simplified administration, and shut down and transferred some non-business and poorly profitable subsidiaries and management platforms. The third quarter has been phased out and is being restartedResettled 5 subsidiaries and transferred subsidiaries including Xianfeng Pingbaying and Wuhan Mulan Real Estate. In January this year, Chongyang Sante Travel Industry and Chongyang Sante Lushuihe will hold some assets to 2.

The price of US $ 2.8 billion was transferred to a subsidiary subsidiary of the controlling shareholder.

A complete breakthrough in revitalizing existing assets, reducing costs and improving efficiency, is conducive to focusing on the main ropeway business.

The performance of major subsidiaries has steadily increased, bringing strong growth momentum.
As of H1 of 2018, the performance of the company’s main attractions and subsidiaries has maintained steady growth, and Fanjingshan Tourism Company’s revenue and net profit have increased respectively.

22% and 71.

24%, Huashan Ropeway’s revenue and net profit increased by 48.

11% and 63.

52%, other profitable subsidiaries such as Hainan Company, Lushan Sandiequan Company and Zhuhai Ropeway Company have basically achieved rapid growth in receiving tourists, operating income and net profit.

The gradual expansion of poorly profitable subsidiaries in 2018 will make the profitability of the company’s profitable subsidiaries prominent. In 2018, the Fanjingshan Scenic Spot was successfully applied for.The level of professionalism and refinement; Huashan Company strengthened its publicity and marketing efforts; Hainan Company benefited from the Hainan New Deal, continuously enriched the experience of attractions and amusement programs, strengthened synergies, and is expected to continue to benefit from policy dividends.

Leaders renewed to streamline the development strategy, and major shareholders strongly supported the company to hire Mr. Zhang Quan and Mr. Cao Zheng as the company’s president and secretary to the board respectively in November and December 2018.

Mr. Zhang Quan once served as the company’s chief operating officer, and Mr. Cao Zheng served as a listed securities company. He has rich experience in capital operations. The fresh blood inside will bring new management ideas and clear strategies to the company.From June to July of this year, a total of 5 shares were added to the company.

09%, and its wholly-owned subsidiary received part of the company’s assets in January this year, and gave strong support for the company’s development, showing its confidence in the company’s 西安耍耍网 development.

The price reduction of scenic spots is expected to have a small impact. The company gradually deploys leisure travel space development. The company’s main attraction ticket business includes tickets for Fanjingshan Scenic Area and some other subsidiary attractions. At present, the peak season tickets for Fanjingshan Scenic Area are replaced by 110 yuan / person.People, the price reduction rate is about 9%. Although the expected price reduction has been achieved, the current price reduction is relatively small.

Ropeway may also have price reduction expectations in the future, but there is no clear documentary requirement at present, and the short-term price reduction is expected to have a small impact on the company’s operations.

The company launched the “Pastoral Pastoral” brand in 2015. The overall spa and 无锡桑拿网 other leisure and vacation business has grown well, and the potential of camps and research areas has continued. In the future, the space for leisure tourism will gradually be wider.

Investment suggestion: The company will continue to divest assets, focus on its main business, and renew its development strategy in series. The performance of major subsidiaries will grow steadily in 2018.

It is expected that the EPS for 2018-2020 will be 0.

97, 0.

50, 0.

At 61 yuan, the corresponding PE is currently expected to be 22X, 43X, 36X, maintaining the “overweight” level.

Risk reminder: The price of the ropeway is lowered or landed, the ticket prices for attractions are further reduced, the weather and natural disasters at the attractions, replacement subsidiaries are less than expected, and other tourism items are less than expected.