Mount Emei A (000888): Expected, estimated improvement in internal and external environment of the outsole

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Mount Emei A (000888): Expected, estimated improvement in 武汉夜网论坛 internal and external environment of the outsole

This report reads: Tickets for scenic spots have been reduced in price. Investors’ expectations are too pessimistic and they are estimated to have reached the historical bottom.

However, under the improvement of the internal and external environment, revenue and profit showed expected growth, exceeding market expectations.

Investment Highlights: Highlighting “overweight” again.

The EPS for 2019-2021 is maintained at 0.

42/0.

44/0.

46 yuan, maintaining a target price of 9.

10 yuan, corresponding to the dynamic price-earnings ratio of 22Xpe in 2019, maintaining the overweight level.

The market has reduced ticket prices to too low, and the company is expected to be undervalued.

In the first half of 2019, the actual fare of the scenic spot decreased by only 6.

51%.

The impact of the growth of diversified business and the smooth decline in tickets on the company’s revenue and performance, revenue and profit maintained a positive growth, and by the third quarter of 2019, the growth rate of revenue and profit increased marginally.

Since the ticket price reduction is expected in advance, it underperforms the Shanghai and Shenzhen 300 Index 34.

86%, the price-earnings ratio, price-to-book ratio and estimated premium have all fallen to the bottom area of ten-year history.

The continuous improvement of transportation, the landing of the performing arts project, and the restoration of the three-factor resonance of the golden line, the center of tourist masses moved forward further.

As a famous Buddhist mountain, the company’s passenger flow has continued to stabilize, and the center continues to move upwards.

In recent years, high-speed rail, highway, and high-speed conditions have continued to improve. Through the completion of the “Only Emeishan” performing arts project in September, the restoration of the Emeishan Gold Line in Jiuzhaigou has improved overall appeal.

Significant results have been achieved in improving quality and efficiency. Asset injection and Houshan development are worth looking forward to.

After the new leader takes office, the expense ratio for the period is reported from the third quarter of 2017 to 21.

16% dropped to 15 in the third quarter of 2019.

36%, advertising costs and salary declines are the main factors for the company’s cost reduction. In 2019, the “three pressures and three determinations” measures to improve quality and efficiency continued.

The future injection of major shareholder sightseeing car business and the development of the Emei Houshan Line are expected to bring new profit growth points for the company.

Risk factors: bad weather, earthquake factors affecting passenger flow, low expectations for traffic improvement progress, and policy risks.