Three special ropeway (002159) follow-up review: test water theme park to optimize the operating structure of the future growth can be expected
Investment Announcement Company Announcement: The company has an agreement with Kawo Tourism and Huama Mangrove to acquire 80% equity of Wuhan Longchao East Lake Ocean Park with a total of 28,000 million shares of its own funds (including 60% of the shares held by Kawo Tourism20% owned by Ma Hong).
Kavo Tourism and Huamahong promised the performance of the target in the next three years and assumed full performance commitment compensation obligations.
The underlying fundamentals of the transaction are good and it is expected to become a new profit growth point.
Donghu Ocean Park is located in Wuhan Donghu Ecological Tourism Scenic Area. It opened in September 2002 with a construction area of about 30,000 square meters and an investment of 2.
500 million US dollars, operating content includes Sea World, Asuka World, International Circus, Happy Water World, Insect Kingdom and Children’s Kingdom, 55 yuan for some OTA park tickets.
There are also Happy Valley, Maya Water Park and Haichang Ocean Park. The target of Haichang is similar to the business theme. The advantages are: 1) low attraction to tourists 2) rich entertainment content, covering a wide range of ages 3) attached to the East Lake scenic areaStrong passenger capacity 4) Convenient transportation, close to subway station, close to train station and bus station.
The target company’s net assets in 2019 were 208.48 million yuan, total debt was 39.4 million yuan, and the asset-liability ratio was 16.
4%, good solvency.
The full year 2018 and 2019 H1 revenues were 77.46 / 40.07 million yuan, the net profit was 26.94 / 10.88 million yuan, and the corresponding net interest rate was 34.
8% / 25.
5%, the overall profitability is expected to become the company’s new profit growth point.
The performance of the transferor promises to reduce the company’s future operating risks.
After the completion of the transaction, Kavo and Huama Red each hold 10% of the equity of the target company, and Kavo and Huama Red promised that the target company’s net profit after deductions will be no less than 2,780 / 3,440 / 42.8 million in 2020/2021/2022.RMB, three-year cumulative commitment to net profit of not less than 105 million yuan.
If the target company achieves the performance commitment amount expected to achieve net profit in the performance commitment, the transferor promises to compensate 80% of the difference in cash and give the company compensation in accordance with the agreement, thereby greatly reducing the company’s future performance risk.
The company tried the theme park operation for the first time, with both possibilities and challenges.
The company’s first involvement in the theme park business may be that the integration into the theme park will help adjust the company’s operating structure and hedge the economic risks of the attraction business ticket.
In addition, the theme park industry is in a rapid development stage, and the company is expected to enjoy the rapid development bonus of the industry.
The challenge lies in the company’s lack of experience in theme park operations and the uncertainty of later operations.
In addition, at present, domestic theme parks are fiercely competitive. Well-known theme parks such as Happy Valley and Huaqiang Fangte are actively deploying, and the company is facing some competitive pressures.
Profit forecast and investment rating: The company actively explores innovation and strives to break away from the dependence on natural resources and the economic model of tickets.
After the completion of the acquisition, the company’s operating structure will be more diversified, which will lead to improved corporate profits in the short term, a more reasonable long-term operating structure, improved ability to withstand industry risks, and higher growth.
The rapid growth of portable travel in the future, the upgrading of residents’ consumption concepts and the continuous 北京桑拿洗浴保健 improvement of traffic conditions will benefit multiple attractions of the company.
At the same time, the reform of the management system and the promotion of fixed-increasing aim to reduce management fees, financial rates, mature and sustainable development, improve the performance of projects during the incubation period, continue to replace assets to reduce losses, and the company’s profitability is constantly improved.
The company has a small market value and a high margin of safety. The acquisition brings a series of positive effects. Investors are advised to pay attention.
EPS is expected to be zero in 19-21.
78 yuan, the closing price on August 21 corresponding to PE were 32/24/20 times, maintaining the “prudent increase” rating.
Risk Warning: The target business is less than expected, extreme weather affects passenger flow, ticket and cableway price reductions, etc.