Emeishan A (000888) Annual Report Comments: Ticket Price Reductions Are Better Under Short-term Pressure Expense Control

Emeishan A (000888) Annual Report Comments: Ticket Price Reductions Are Better Under Short-term Pressure Expense Control

Event: The company disclosed its 2018 annual report, and its net profit rose by more than 6.

4% of the company’s operating income in 201810.

72 trillion, a year down 0.

6%; net profit attributable to mother 2.

09 million yuan, an annual increase of 6.

4%; deduct non-net profit 2.

09 million yuan, an annual increase of 5.


Among them, Q4 achieved revenue 上海夜网论坛 2 in a single quarter.

25 ppm, an increase of 2 per year.

2%; net profit attributable to mother 4040.

280,000 yuan, 10-year average of 10.

4%; deduct non-net profit 4047.

170,000 yuan, down 8 every year.


In addition, the company’s annual report revealed that in 2019 the company plans to achieve 3.3 million people on tour tickets and revenue of 10.

700 million, net profit1.

9.6 billion, 8% return on net assets.

  The company has better cost control and improved profitability. The reported gross amount and company gross margin are 42.

6%, basically the same as in 17 years, the net interest rate rose to 19.

5%, an increase of 1 per year.

3 points.

The increase in the company’s net profit margin was mainly due to the substantial reduction in expenses during the period.

The company’s expense control 南京夜生活网 is better, and the overall expense ratio during the company’s 18-year period decreased by one.

4 points to 17.

0%, the sales expense ratio drops by 0 every year.

9 points to 3.

1%, preliminary optimization of the company’s marketing model, to promote the transformation of traditional marketing to the network, precision marketing; management expense rate reduced by 0.

1 point to 13.

9%, mainly due to the company’s resource integration, reducing 226 employees to reduce labor costs; financial expense ratio of 0.

0%, a decrease of 0 per year.

3pct, mainly due to the reduction in short-term expenditures and income expenditures.

  Attractions ticket and ropeway business performed well, and the revenue of hotels and travel agencies decreased significantly. The company’s main business performed well: In 2018, the company’s ticket and ropeway business achieved revenue7.

88 ppm, a five-year increase of 5.

3%; gross margin decreased by 0.

7pct to 48.


In terms of business, in 2018, the revenue of passenger tickets and passenger ropeway was 4, respectively.74, 3.

14 ppm, an increase of 3 per year.

5%, 8.

2%; gross profit margins are 31.

5%, 74.

5%, year to year change -2.

1pct and 0.

5 points.

Despite the impact of reduced ticket prices during the peak season and the increase in preferential policies for the elderly, the unit price of attractions has remained stable, and the four-month 10,000-year ropeway transformation has been completed. The hourly one-way traffic has been increased from 1,660 to 2,400, overlapping the Golden Roof ropewayThe company continues to perform well and expects to receive 583 ropeway tourists.

330,000 person-times, driving the growth of revenue from attraction tickets and ropeway business.

  Hotel and travel agency business revenues have expanded significantly: 18 years of hotel business achieved revenue1.

83 ‰, ten years ago 8.

5%; gross margin decreased by a constant 4.

1 point to 17.

7%, a preliminary breakdown of the hotel industry’s prosperity in the second half of 2018.

Travel agency business achieved revenue of 369.

0.94 million yuan, a decrease of 42.


Other business revenue was 9,760.

900,000 yuan, a decrease of 21 a year.

5%, gross profit margin rose 3 in ten years.

8 points to 41.


  Investment suggestion: Short-term pressure brought by ticket price reductions. Follow-up attention to the expected progress is affected by the ticket reduction policy. The company’s 19-year operating plan has maintained the same operating income as 18 years, and its net profit has dropped by about 6%.

The short-term performance pressure brought by the price reduction of tickets, the company’s expense control is excellent after the new integration, and the company’s overall operation has remained stable. The company continues to promote the industrial upgrading and industry extension of attractions, and its profit will gradually improve in the future.

The company’s EPS for 19-21 is expected to be zero.



45 yuan / share, corresponding PE is 20/19/17 times.

At present, the average 19-year expected price-earnings ratio of expected listed companies is about 28 times. Considering that the company’s profits have been reduced due to the reduction of tickets in 19 years, due to careful consideration, 22 times PE in 19 corresponds to a reasonable value of 8.

36 yuan / share, downgraded to “overweight” level.

  Risk reminders: natural disasters and emergencies affect passenger flow, the development progress of emerging industry projects, the implementation progress of transportation construction, and the transformation and upgrading are not up to expectations.