Emeishan A (000888): 19Q1 income-side fluctuations continue to control fees to improve efficiency

Event: The company released the first quarter report of 2019, and achieved revenue of 2 in Q1.

5.5 billion (-3.

38%), net profit attributable to mother 0.

1.9 billion (+5.

42%), deducting non-net profit of 0.

1.8 billion (-1.


The main points of investment attributed to the mother’s net profit have increased, and non-recurring gains and losses have affected the transmission.

In Q1 of 19, it achieved revenue of 2.

5.5 billion (-3.

38%), it is estimated that it is related to factors such as price reduction in the scenic spot, and the net profit of the mother is 0.

1.9 billion (+5.

42%), non-recurring 都市夜网 gains and losses contributed 130.

220,000 yuan, non-recurring gains and losses mainly include non-current assets disposal gains and losses78.

220,000 yuan and government subsidies 26.

500,000 yuan (+229.

19%), deducting non-net profit of 0.

1.8 billion (-1.


Gross profit margin has decreased and management has improved.

1Q1 gross profit margin 31.

81% (-2.

27pct), slightly decreased.

Management efficiency helped boost net interest rate by 0.

63pct; selling expense ratio 5.

23% (-1.

40pct), marketing transformation, expanding the use of online marketing channels, improving efficiency and reducing fees; financial expense ratio is 0.

38% (-0.


Increase in interest income; management expense ratio 16.

73% (+0.


On January 30, 19, the company agreed to reach the “Environmental Sanitation Expenses Agreement” and accepted the environmental sanitation expenses of Emeishan Scenic Area according to the agreement. It is accrued based on 5% of the total annual entrance ticket revenue. 5.32 million yuan has been accrued for environmental sanitation.

The upgrade of the ropeway is completed, the capacity is improved, and the cash flow is healthy.

In April 2018, Wannian Ropeway completed the refitting and transformation, and the hourly one-way traffic increased from 1,660 to 2,400. The net cash flow from operating activities in 19Q1 was 5,787.

730,000 yuan (+57.

73%), mainly due to the increase in revenue and reduction in payment of fees after the launch of the Wannian Ropeway.

The actual controller is changed to speed up the reform of state-owned enterprises.In May 18, Sichuan Emeishan Leshan Giant Buddha Tourism Group Corporation completed the restructuring. After the restructuring, the actual controller of the company was changed from Emeishan Management Committee to Leshan SASAC.

The continuous deepening of the company’s state-owned enterprise reform will help optimize resource allocation, integrate regional tourism resources, and further expand the room for performance improvement.

Profit forecast: It is estimated that the net profit attributable to mothers will be 19-21.

21, 2.

34, 2.

480,000 yuan, a growth rate of 5.

5%, 6.

0%, 6.

1%, EPS is 0.

42, 0.

44, 0.

47 yuan, PE is 16, 15, 14 times.

Risk reminder: risks such as bad weather, geological disasters, ticket price reduction, etc.