(Report producer Author: Guotai Junan**, Liu Yuenan, Zhuang Zitong).
Core business sorting and marginal changes: Jiuhua Tourism, as one of the traditional Buddhist mountains, is rooted in the core resources of Jiuhua Mountain Scenic Area, considering that the famous mountains and rivers continue to benefit under the trend of affordable travel, it is expected that the passenger flow will continue to increase, and the performance is expected to grow at a high rate due to the opening of the Chihuang high-speed railway in June 2024 and the reconstruction and expansion of Jiuhuashan Airport in July.
From the perspective of specific business splits:
Ropeway business: Considering the off-season increase in passenger flow due to traffic improvement, and there is still room for improvement in the ropeway occupancy rate, it is expected that the ropeway revenue will recover to 132%, 154%, and 163% of 2019 in 2023-2025, corresponding to a revenue of 305/3.55/3.7.6 billion yuan, corresponding to a year-on-year growth rate of 145%, 16%, 6%;
Hotel business: Considering that the relatively limited supply of hotels has some support for room rates, it is expected that hotel revenue will recover to 158%, 182%, and 191% of 2019 in 2023-2025, corresponding to revenue of 264/3.04/3.1.9 billion yuan, corresponding to a year-on-year growth rate of 110% 15% 5%;
Passenger transport business: Considering that passenger transport is constrained by vehicle bottlenecks and has certain restrictions on recovery, it is estimated that passenger revenue will recover to 130%, 149%, and 154% of 2019 in 2023-2025, corresponding to revenue of 118/1.35/1.3.9 billion yuan, corresponding to a year-on-year growth rate of 120% 15% 3%; The company's revenue is expected to be 724/8.34/8.7.6 billion yuan, corresponding to a growth rate of 118%, 15%, and 5%, gross profit margins of 49%, 49%, and 50% respectively, and net profit attributable to the parent company of 176/2.06/2.2.1 billion yuan, corresponding to a net profit margin of 24% 25% 25%.
2.1.Historical evolution: one of the four famous mountains of Buddhism, the layout of cableway + hotel + passenger transport + travel agency
One of the four famous mountains of Buddhism, the layout of the cableway + hotel + passenger transport + travel agency business matrix. Jiuhua Mountain in Anhui Province has both unique natural and human resource endowments, and is a mountain-type national scenic spot characterized by Buddhist culture and natural and humanistic scenic spots, and is known as the four famous mountains of Chinese Buddhism together with Wutai Mountain in Shanxi, Putuo Mountain in Zhejiang Province and Emei Mountain in Sichuan, and is the first batch of natural and cultural heritage sites in the country and the main scenic spot of "two mountains and one lake" (Jiuhua Mountain, Taiping Lake and Huangshan) tourism development strategy in Anhui Province. Taking 2023H1 as an example, the company's cableway, cable car, travel agency, hotel, passenger transportation and other businesses accounted for 43%, 32%, 30% and 19% of the revenue, respectively. In 2000, Anhui Province approved the establishment of Anhui Jiuhua Mountain Tourism Development Co., Ltd., and in 2002, it acquired and cancelled the original "Anhui Jiuhua Dongya Hotel Co., Ltd." and established "Jiuhua Dongya Hotel". Subsequently, nearly 1500 million yuan for reconstruction and expansion to form a new Dongya Hotel; In 2004, it acquired 50% of the shares of Anhui Jiuhua Mountain Julong Hotel, established "Jiuhua Julong Hotel", and took over Dajiuhua Hotel in 2006 and invested 1300 million yuan for the theme expansion and administrative building renovation, and increase the capital and share expansion of 33 million shares, raised 98.67 million yuan, the acquisition of the group company Dajiuhua Hotel and passenger transport overall project, in 2008 investment 1400 million yuan to build a comprehensive resort base for tourism and leisure in Wuxi Mountain.
In 2015, the company was listed on the Shanghai Stock Exchange, and in February 2019, the construction of Shitai Tourism Julong Guniujiang Hotel started, with a total investment of 1$400 million; In August 2020, the foundation stone of the Wenzong Ancient Village project was laid, with a total investment of 1$7.2 billion; In May 2022, the foundation stone of the Jiuhuashan Transportation Conversion Center (Bus Passenger Station) function improvement project was laid, with a total investment of 3500 million yuan, after completion, it will meet the needs of more than 5,000 tourists per hour during peak periods, consultation and intelligent services; In May 2023, Wenzong Ancient Village Hotel was officially completed and opened to the public.
2.2.Senior management team & shareholder structure: Backed by Chizhou State-owned Assets Supervision and Administration Commission, the shareholding structure is clear
Backed by Chizhou State-owned Assets Supervision and Administration Commission, the equity structure is clear. When the company was listed in 2015, it was actually controlled by the Jiuhuashan State-owned Assets Supervision and Administration Commission, and has undergone three major changes after listing: in 2018, Anhui Jiuhuashan Cultural Tourism Group **1213% of the voting rights were transferred to Anhui High-tech Industrial Investment Co., Ltd., and the actual controller was changed from Jiuhuashan SASAC to Anhui SASAC; In 2019, Anhui Venture Capital Co., Ltd. will be 1470% of the equity was transferred to Anhui High-tech Industry Investment, which became the controlling shareholder of the company, and the actual control is still Anhui State-owned Assets Supervision and Administration Commission; In 2023, the Cultural Tourism Group will terminate the Jiuhua Tourism entrusted to the Provincial High-tech Investment 12The voting rights corresponding to 13% of the shares, the controlling shareholder was changed from the Provincial High-tech Investment to the Cultural Tourism Group, and the actual controller was changed from the State-owned Assets Supervision and Administration Commission of Anhui Province to the State-owned Assets Supervision and Administration Commission of Chizhou City.
2.3.Performance trend: Benefiting from the recovery of passenger flow in famous mountains and rivers, the performance continues to increase
Benefiting from the recovery of passenger flow in famous mountains and rivers, the performance exceeded expectations. According to the company's 2023 annual performance forecast, the company will achieve revenue of 72.3 billion yuan, recovering to 135% of 2019, and net profit attributable to the parent company was 17.5 billion yuan, recovering to 150% of 2019, deducting net profit not attributable to the parent company of 16.6 billion yuan, recovered to 155% of 2019; Single Q4 income 16.1 billion yuan, recovered to 134% of 2019Q4, and the net profit attributable to the parent company was 02.3 billion yuan, recovering to 237% of 2019Q4, deducting 02.1 billion yuan, recovering to 304% of 2019Q4, and the performance continued to grow highly.
3.1.Traffic improvement is the core support in the long term
The core changes in Jiuhua tourism come from the transportation improvement in 2024: the opening of the Chihuang high-speed railway to connect Huangshan and Jiuhuashan Scenic Area, the expansion of Jiuhuashan Airport to attract long-term tourists, and the opening of the Wuhan-Hangzhou high-speed railway to connect the east-west line
Improvement 1: The Chihuang Railway will connect the core scenic spots of two mountains and one lake (Jiuhua Mountain, Huangshan Mountain and Taiping Lake) in southern Anhui, providing convenient transportation for the core scenic area that could only be traveled by car. The Chi-Huang Railway connects the Ning'an Railway in Chizhou City, and the Hefu Railway and the Hangzhou-Huangzhou Railway in the Huangshan area, and is also an important part of the Wuhan-Hangzhou high-speed railway corridor. The new main line is about 125 kilometers long from Chizhou Station to Huangshan North Railway Station, with a design speed of 350 kilometers per hour. In the past, from Jiuhua Mountain Scenic Area to Huangshan Scenic Area, you need to start from Jiuhua Mountain, enter the provincial highway S228, pass through the county road X005, Furong Avenue, National Highway G330 and Beijing-Taiwan Expressway, enter the Shanshen line, and finally arrive at the Huangshan Scenic Area, the whole journey is 1166 km, 2 hours by car. After the opening of the Chihuang high-speed railway, it will be connected to Jiuhua Mountain, Huangshan Mountain, Taiping Lake, this ** tourist line, Jiuhuashan Station will be built at the foot of Jiuhua Mountain Scenic Area, Huangshan West Railway Station is less than 10 kilometers away from Huangshan Scenic Area, less than 30 kilometers away from Taiping Lake Scenic Area, Jiuhuashan Station is about 40 kilometers away from Huangshan West Railway Station, and the high-speed rail only needs 10 minutes away, which will greatly facilitate the travel of tourists. In addition, the construction of Jiuhuashan Station will also enhance the convenience of tourists outside the province, in the past, entering the scenic spot or from the west Chizhou Station to the station after driving to the scenic spot (more than 1h), or by Qingyang County Bus Station 30 minutes by car, Jiuhuashan Station will improve the efficiency of arrival, to the scenic tourist service center need to drive for half an hour, after the completion of the highway in 2025, Jiuhuashan Station to the scenic spot only 10 minutes by car;
Improvement 2: The reconstruction and expansion of Jiuhuashan Airport is expected to be completed in July 24, and the increase in carrying capacity will drive long-term growth. At the end of 2018, the reconstruction and expansion project of Jiuhuashan Airport was started and is expected to be completed in July 2024, and the expansion index of the airport flight area will be improved according to the 4C standard, the runway will be extended from 2400 meters to 2800 meters, and the parking stand will be increased from 5 to 12. New Terminal 140,000 square meters, 3 new boarding bridges, corresponding supporting construction of flight areas, terminal areas and other facilities, and 7,500 square meters of new joint inspection rooms to meet the throughput demand of 1.9 million passengers in the target year of 2030 (500,000 passengers in 2019). Considering that long-term Buddha tourists choose airplanes as the main mode of travel, the reconstruction and expansion of the airport will increase the number of flights and passenger capacity during the peak season.
Improvement 3: The Chi-Huang high-speed railway is an important part of the Wuhan-Hangzhou high-speed railway, which will greatly improve the east-west passenger flow after completion. Wuhan-Hangzhou railway by Wuhan-Huanggang high-speed railway (Wuhan to Huanggang), Huanghuang high-speed railway (Huanggang to Huangmei), Hejiu passenger dedicated line (Huangmei to Anqing), Ning'an passenger dedicated line (Anqing to Chizhou section), Chi-Huang high-speed railway, Hangzhou Linji high-speed railway, Hangzhou-Changzhou high-speed rail second channel, Wuhan-Hangzhou high-speed railway channel is an important part of the national "eight vertical and eight horizontal" high-speed rail network along the river, connecting Anhui, Hubei and Zhejiang provinces, for the improvement of Hubei Province to East China new high-speed railway network, the formation of both Wuhan-Nanjing high-speed rail after the opening of the Hubei Province is another high-speed rail corridor to East China and the Yangtze River Delta. The construction of the project started in October 2017, and it currently takes about 4 hours to travel from Wuhan to Hangzhou, and considering that the Wuhan-Hangzhou railway has a total length of 720km and a design speed of 350km per hour, it is expected that the travel time will be reduced to about 2 hours.
3.2.The recovery of the tourism market is accelerating, and it is expected to remain supportive in 2024
The number of tourists and income during the New Year's Day holiday are recovering, continuing to exceed the level of the same period in 2023. **According to the data center of the Ministry of Chemistry and Tourism, the New Year's Day holiday is 3 days of domestic tourism travel in the country3.5 billion person-times, a year-on-year increase of 1553%, a comparable return to 109 in 20194%；Achieved domestic tourism revenue 797300 million yuan, a year-on-year increase of 2007%, back to 105 in 20196%, and the average customer value was 591 yuan, which recovered to 96 in 201953%。From a marginal point of view, the recovery of tourist arrivals is +5 compared with the mid-autumn National Day holiday3pct, tourism revenue +41pct, the average customer value is -098pct。The recovery of long-distance routes is the core highlight of this holiday: from the perspective of long-distance data, the total number of passengers sent by railways, highways, waterways and civil aviation is expected to be 12,812 during the New Year's Day holiday640,000 passengers, +784%, of which the railway is expected to send 4420 passengers20,000 passengers, +177 year-on-year in 20225%, about +38% compared to 2019, and the highway is expected to send 7699 passengers80,000 passengers, +46 year-on-year in 20221%, and the waterway is expected to send 173 passengers640,000 passengers, +729%, civil aviation is expected to send 5.19 million passengers, +140 compared to 20223%, about +15% compared to 2019. (Ministry of Transport) In addition, according to the China Tourism Academy**, it is expected that the number of domestic tourism trips and domestic tourism revenue will exceed 6 billion and 6 trillion yuan in 2024, respectively, recovering to 100% and 105% of 2019 levels, respectively. The number of inbound and outbound tourists and international tourism revenue will exceed 26.4 billion passengers, 107 billion US dollars, recovered to 88% and 81% of 2019 levels respectively (inbound tourism takes into account foreign travelers).
3.3.The growth rate of Buddhism-themed scenic spots is high, and the trend of parity consumption continues
The scenic spot with abundant Buddha resources has benefited more, and Jiuhua Mountain, as a famous Buddhist mountain, has been catalyzed in the peak season. In addition, considering that most traditional scenic spots have limited room for price increases under the influence of the ticket reform policy in 2018, and the cost of hotel and flight travel is gradually increasing, traditional scenic spots will benefit more under the trend of parity consumption, and are expected to continue to prosper in 2024.
4.1.Holding the right to operate in the scenic area, the transportation transfer center project is expected to expand the upper limit
The company holds the right to operate passenger transport in the scenic area and provides a package of passenger transport services. Jiuhua Mountain Scenic Area is relatively large, and some scenic spots need buses to provide passenger services. Jiuhuashan Passenger Transport Company, a subsidiary of the company, has the franchise right of passenger transport in the scenic area, and has the qualification of inter-provincial tourist charter operation, and currently has 138 operating vehicles. Jiuhuashan Passenger Transport Company mainly provides special line tourist transportation in the scenic area, chartered cars in the scenic spot, all kinds of tourist chartered buses and other services, which is the chain of organic connection of various businesses. The Jiuhuashan Transportation Conversion Center project is expected to bring new increments to the passenger transport business. In May 2022, the company renovated and expanded the Jiuhuashan Tourist Service Center, and the new project is the Jiuhuashan Traffic Conversion Center, covering two parts: the reconstruction and expansion of the original tourist service center and the new smart parking building. The project is scheduled to be put into operation in February 2024, with a parking capacity of up to 5,566 vehicles (originally less than 2,000 people) and a capacity of 5,000 person-hours for tourist transfer, consultation and intelligent integrated services, becoming the largest modern transportation transfer center among the 5A tourist attractions in the province. The company has set up multi-level transportation fares for different tourist needs. Jiuhua Mountain Scenic Area is larger, divided into Jiuhua Street Scenic Area, Minyuan Tiantai Scenic Area, Huatai Scenic Area, etc. In response to the needs of different tourists, the company has set up passenger services at different prices at many stations such as the tourist service center, Yingxian Bridge (Jiuhua Street), Phoenix Pine, and Huatai Scenic Area, so as to effectively meet the diversified needs of tourists.
4.2.The hotel is in a great location and fully furnished
The hotel is in a great location and well laid out. The company operates a total of 8 hotels, which are located in Jiuhua Mountain Scenic Area in Anhui Province, the urban area of Chizhou City, Qingyang County of Chizhou City and Shitai County of Chizhou City. Among them, Julong Hotel, Dongya Hotel and Jiuhua Mountain Center Hotel are located in Jiuhua Mountain Scenic Area, which are very close to the scenic ticket inspection area; Wuxi Mountain Hotel is located in the Wuxi Mountain Scenic Area at the north gate of Jiuhua Mountain; Dajiuhua Hotel and Pingtian Peninsula Hotel are located in the urban area of Chizhou City; Xifeng Mountain Villa is located in Qingyang County. Julong Guniujiang is located in the core area of Shitai Guniujiang Scenic Area (among them, Julong Guniujiang is a branch of Shitai Tourism Company, which holds 20% of the shares). The hotel has a variety of room types and distinct intervals, and all kinds of supporting facilities are complete. Each hotel has a variety of room types to meet different needs including family travel, business, administration, etc., and the room types are clearly hierarchical. The hotel integrates catering, guest rooms, conference affairs and leisure, not only with all kinds of guest rooms, Chinese and Western restaurants, private rooms and large and small conference rooms, but also tea bars, shopping centers, chess and card rooms, leisure centers and other fully functional supporting service facilities, which can meet the all-round needs of passengers.
The surrounding environment of the hotel is beautiful, the design is novel, and the theme cultural function is prominent. Most of the hotels are located around the landscape and temples, with beautiful scenery and fresh air. For example, Pingtian Peninsula Hotel is located on the shore of Pingtian Lake, a cultural ecosystem formed by historical accumulation and beautiful scenery. Located in the core area of Shitai Guniujiang Scenic Area, 97% of the land is rich in selenium, which is one of the rare selenium-rich places in China, and the air environment of the hotel is rich in oxygen, with nearly 100 kinds of plants in the park and excellent air quality.
4.3.The cableway business has strong profitability and contributes 40% of the company's revenue
The cable car ropeway business includes three ropeway cable car lines in the scenic area, which go directly to the corresponding independent scenic spots of Jiuhua Mountain. Compared to walking up the mountain, the cable car ropeway is more convenient and takes less time, and at the same time, the view is wide, and you can enjoy a different scenery. Among the three ropeways, the Huatai Ropeway was completed in 2010, with the shortest completion time, the longest length, the strongest capacity, and the highest proportion of revenue. Completed in 1994 and rebuilt in 2013, the one-way transportation time is about half that of the Huatai Ropeway, and the fare is basically the same as that of the Huatai Ropeway. Built in 2000, the Centennial Gondola has the shortest length and the lowest fare.
The ropeway and cable car business accounts for about 40% of the total revenue of the main business, contributing to the main increase in the company's revenue growth. Due to the exclusivity and efficiency of the cableway business, the business has been the main force of the company's main business income, accounting for about 40% of the company's main business income, accounting for about 74% of the gross profit, the main driver of the growth of the cableway business is the continuous growth of the overall passenger flow and the continuous improvement of the ropeway rate, with the continuous recovery of passenger flow after the epidemic and the enhancement of people's pursuit of efficient tourism, it is expected that the revenue of the cableway cable car business will further grow. The funicular business has strong profitability and stable fares. The gross profit margin of the ropeway cable car is high, which can be maintained at more than 80% before the epidemic, and although it has fluctuated in recent years, it is still higher than 70%. According to the official website of the scenic spot and the prospectus. Since 2010, the company's ropeway cable car fares have hardly changed, and the off-season and peak season time are clearly distinguished, which is open and transparent, providing great convenience for tourists to arrange their visit time and make a good travel budget.
4.4.The business of travel agencies is rich in categories and has grown steadily
Founded in 1979, Jiuhuashan China Travel Service mainly organizes the reception of tourists from all over the world, including compatriots from Hong Kong, Macao and Taiwan and overseas Chinese, and at the same time organizes domestic tourists to receive groups and individual tourists in various parts of the country and Jiuhuashan. The operating strength has been expanding year by year, the supporting facilities for tourism have been improved year by year, and the quality of the tour guide team has been continuously improved. China International Travel Service (Jiuhuashan Branch) was established in 1979. Facing the domestic and international tourism market, it has established long-term close cooperative relations with a number of powerful travel agencies at home and abroad. Multilingual translators and full-time tour guides are available, with a fleet of luxury tours. The business department, CITS **, takes tourism network e-commerce as the operating platform to provide personalized tourism services such as team ground pick-up, unit package group, individual passenger self-service and theme activities. Nine Tours Travel Agency was established in April 2007. Specializing in tourism services, providing high-quality tourism services, including domestic and foreign tourism, team building, corporate incentives, individual self-guided travel and other aspects. Among the three travel agencies, Jiuhuashan China Travel Service is more traditional in terms of tourism business, mainly receiving tourists from all over the world, and has a long history and rich experience. China International Travel Service (Jiuhuashan Branch) mainly serves the domestic and international tourism markets, focusing on cooperation with other powerful travel agencies, and also has business in e-commerce. Nine Tours Travel is relatively young and focuses on providing high-quality travel services, covering many aspects of the tourism business.
This article is for informational purposes only and does not represent any investment advice from us. To use the information, please refer to the original report. ）
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