Tianmu Lake (603136): 19H1 income is stable, effective fee control and profit side are growing steadily

Tianmu Lake (603136): 19H1 income is stable, effective fee control and profit side are growing steadily

Event: The company released its 2019 Interim Report, which achieved revenue in the first half of 192.

200 million (+0.

27%), net profit attributable to mother 0.

5.4 billion (+9.

56%), deducting non-net profit of 0.

5.2 billion (+14.

8%).

Investment points deducted non-net profit growth was steady, and the growth rate was up from the previous quarter.

The company released its 2019 Interim Report, which achieved revenue 2 in 19H1.

200 million (+0.

27%), net profit attributable to mother 0.

5.4 billion (+9.

56%), deducting non-net profit of 0.

5.2 billion (+14.

8%), government subsidies in non-recurring gains and losses decreased from 542 times in 18H1 to 1.08 million yuan in 19H1, which was in line with expectations as a whole.

2Q19 achieved revenue 1.

3.1 billion (+1.

42%), -1 from Q1.

39% had a significant improvement, and net profit attributable to mothers was 0.

3.9 billion (+23.

31%), deducting non-net profit of 0.

3.7 billion (+17.

31%), the profit-side growth rate increased synchronously (19Q1 deducted non-growth rate 8).

99%).

Gross profit margin 武汉夜生活网 increased steadily, and financial expenses decreased significantly.

19 H1 gross profit margin 65.

7% (+1.

6pct), Q2 single quarter gross margin of 70.

8%, compared with 58 in the first quarter.

1% continued to increase; the sales expense ratio in the first half of the year was 13.

3% (-0.

1pc), 15% administrative cost (+0.

2pc), basically stable; financial expense ratio -1.

2% (-3.

3pct), mainly due to debt repayments and increased interest on deposits.

Operating cash inflows 2.

$ 6.4 billion, matching revenue, but with a net operating cash flow reduction of at least 20%, increased with purchases of goods, cash paid for labor services, cash paid to and paid to employees, and expected to change with the company’s payment rhythmrelated.

The performance of the ropeway subsidiaries was impressive, and the Zhuhai subsidiary grew steadily.The hot spring company realized revenue of 6022.

580,000 (+1.

62%) and net profit of 451.

200,000 (-25.

50%); the travel agency company achieved revenue of 7,450.

420,000 (-2.

89%) and net profit of 224.

620,000 (+1.

88%); Zhuhai Company’s operating income was 6718.

960,000 (-0.

1%), with a net profit of 2384.

380,000 (+5.

53%); ropeway company revenue was 824.

550,000 (+ 142%) and a net profit of 510.

670,000 (+318.

31%), the passenger flow of the Shanshui Garden and Nanshan Scenic Area is expected to increase slightly, and the ride rate will increase.

The construction of the Zhuxigu project has been progressing steadily, and small-scale reconstruction and expansion and cableway reconstruction have started gradually.

The construction in progress at the end of the 19H1 period increased to 3322 million, which was a further increase from the end of the Q1 period of 2225 million. The construction in progress included the expansion of hot springs, reconstruction (mainly the Zhuxigu project) with an investment of 29.09 million, the reconstruction of a landscape garden with 1.03 million,Renovation investment was 29.31 million, and cableway transformation was 180,000.

In addition, the company determined the mode of foreign investment and actively participated in the selection of foreign investment projects.

Profit forecast: Taking into account the impact of the weak economy on travel, the profit forecast is appropriately reduced. It is estimated that the company’s attributable net profit for the year 19-21 will be 1.

20, 1.

45, 1.

6.3 billion, a growth rate of 16.

7%, 20.

4%, 12.

2%, earnings per share is 1.

04, 1.

25, 1.

40 yuan, corresponding to PE, 21, 17, 15 times, downgrade to “overweight”.

Risk Warning: There may be risks such as project progress exceeding expectations, passenger flow growth exceeding expectations, and severe weather.