CYTS (600138): Q3 results meet expectations and long-term integration synergy appears

CYTS (600138): Q3 results meet expectations and long-term integration synergy appears

Report Summary: Events: On October 30, the company released its third quarter report 2019.

The first three quarters of 2019 achieved operating income of 95.

4.5 billion / + 6.

90% of net profit attributable to shareholders of listed companies.

4.5 billion, basically flat for one year.

The World Garden Fair successfully held supporting performance and integrated marketing business to stabilize the industry’s leading level.

The company achieved operating income of 36 in Q3.

92 ppm / + 9.

82%, net profit attributable to mother 1.

6.3 billion / + 14.

79%, net profit after deduction to mother 1.

6.3 billion / 16.

98%, the whole remains stable.

Most of 杭州夜网论坛 the funds for the World Garden Fair related projects were settled this quarter, which effectively supported Q3’s single-quarter performance growth.

At the same time, the operation of Wuzhen has remained stable, and the independent operation of Juyou has become a driving force.

In the first three quarters of 2019, the company’s subsidiary, China Youth Union, achieved operating income17.

98 ppm / + 4.

66%; realized net profit of 3,181.

700,000 yuan / + 49.

79%.

China Youth League provides services for many events such as the World Garden Fair, the Military Games, and the “Belt and Road” summit forum. The development of conference system technology has been continuously strengthened to further strengthen the company’s leadership in the exhibition industry.

At the same time, benefiting from the internal synergy effect of Everbright Group, Zhongqing Bolian undertook a continuous increase in the number of corporate customers within the group, effectively promoting performance growth.

Wuzhen continues to develop the “Culture + Convention and Exhibition” brand, and Gubei’s external pressure is still in the stage of development.

In 2019Q3 Wuzhen achieved revenue 5.

15 ppm / -0.

96%, profit 1.

48 ppm / + 2.

78%, gradually receiving 284 tourists.

530,000 people / + 5.

68%.

On October 22nd, the 6th Wuzhen Internet Conference ended. At present, the convention and exhibition business accounts for about 10% of Wuzhen’s overall revenue. In the future, the influence of convention and exhibition brands will continue to increase, and the revenue of convention and exhibition will further expand.

At the same time, the number of hotel rooms in the scenic area increased from 1900 to 2300 at the beginning of the reporting period. The reception capacity continued to increase while the occupancy rate remained stable.

Gubei Water Town was affected by the 11th Beijing celebrations and intensified external competition, and achieved operating income in the third quarter of 20193.

28 ppm / -2.

09%, receiving 90% of tourists.

670,000 person-times / -4.

37%, the customer unit price is 361.

75 / + 2.39%, single passenger value increased slightly, the content of future attractions and traffic improvements to improve passenger flow.

Investment suggestion: Benefit World Expo will be successfully held, and the company’s integrated marketing business will perform well; Wuzhen attractions will maintain steady growth. In the future, it is recommended to pay attention to the synergy of Everbright Group.

The company is expected to achieve operating income of 128 in 2019-2021.

89, 137.

78, 147.

4.2 billion; net profit attributable to mother 6.

34, 6.

91, 7.

55 trillion, EPS is 0.

88, 0.

95, 1.

04 yuan, corresponding to PE are 13.

76X, 12.

62X, 11.

55X.

Underestimate the leading attractions and maintain the “highly recommended” level in the midline.

Risk Warning: 1.

Adverse weather effects; 2.

Customer unit 杭州桑拿 price increase was less than expected; 3.

Macroeconomic fluctuations