Sante Ropeway (002159): High core performance and multi-dimensional flexibility after expectation of turning point fulfillment

Event: The company released its 2018 annual report and achieved a total of operating income6.

5 ppm / + 20.

2%; net profit attributable to mother 1.

3 ppm / + 2349.

0%, high profit increase is the company through the transfer of Xianfengpingbaying and other projects to achieve investment income1.

400 million; deducted non-attributed net profit 0.

100 million, turning losses into profits.

  Core Views The performance of core prospects has increased rapidly, and Fan Jingshan’s success in applying for the legacy is expected to gain higher passenger flow.

1) Fanjingshan, the core scenic spot, realized revenue 2.

5 ppm / + 39.

8%, the passenger flow reached 120.

10,000 people / +44.

4%, the beneficiaries of high-increasing passenger flow increased the marketing work of Fanjingshan in the company for 18 years, and produced significant results. Instead of Fanjingshan, they successfully applied to become a World Natural Heritage, and their visibility has greatly increased. It is expected that the benefits of the application will continue in 19 yearsRelease and get higher passenger flow; 2) Huashan Ropeway realized revenue 1.

500 million / + 51.

9%, net profit 6324 million / +70.

2%, driven by marketing efforts, the passenger flow reached 204.

10,000 people / + 39.


3) Zhuhai ropeway achieved revenue of 1168.

50,000 yuan / + 21%, of which 310,000 yuan / + 17 passengers.

9%. At present, the transformation and upgrading of this project has been included in the “Zhuhai Urban Balcony Construction Plan”, which has improved the development space of the Zhuhai project.

  Asset management has been progressing steadily, and the double turning point of performance + management has continued to materialize.

1) With the promotion of the new CEO, the company’s strategic thinking has changed. In 18 years, the company has divested Xianfengpingbaying (realizing investment income1).

US $ 300 million), companies such as Mulan Real Estate and 6 platform-type subsidiaries that have been phased out have steadily advanced their asset sorting, while reducing losses and increasing efficiency, they have also brought objective investment income for the company, and their performance has led to significant results; 2) We believe thatThe double inflection point of the company’s performance for 19 years will be further strengthened.

With the strong promotion of the marketing of key core attractions, passenger flow is expected to be further boosted. Some of the projects within the company’s reorganization are still replacing the project. Under the strategic thinking of “do something and do nothing”, the company is expected to continue to lose weight in 19 years (JanuaryChongyang Three Special Tourism has been divided) to reduce losses and increase efficiency.

  The housing-related problem has been resolved, and the fixed increase is expected to accelerate the implementation. It is expected that the company will save some financial costs and boost the profit level.

In May 18, the company received feedback from the Securities Regulatory Commission on the non-public issuance of stocks, which involved housing issues as a major factor hindering the company’s decision to land.

When the company transferred Chongyang Sante Tourism, it also transferred its real estate projects. The housing-related problems were solved, which replaced the foundation for the company’s fixed increase plan.

After the fixed increase is passed, we expect the company to save part of its financial costs through capital replacement in the future, which will further boost the company’s profitability.

  Financial forecasts and investment 天津夜网 recommendations maintain a BUY rating with a target price of 28.

16 yuan (was 28).

01 yuan).

Taking into account the potential investment income brought by the Chongyang divestiture project, the company’s net purity in 19-21 was slightly raised to 7.



38 yuan (previously 7 for 19/20).


29 yuan), based on the historical average estimation method, maintaining the company for 19 years3.7x PB with a target price of 28.

16 yuan.

Since last year, we have continued to recommend the logic of management + performance double inflection point, which has been gradually fulfilled!

With the gradual expansion of loss reduction projects, the performance + management inflection point has been further strengthened, and continued to be recommended.

  Risks suggest that the core prospect’s earnings growth rate is less than expected, the prospect of natural disaster risks, and uncertainties in future investment returns.