Mount Emei A (000888): Steady progress towards the restoration is worth looking forward to

Mount Emei A (000888): Steady progress towards the restoration is worth looking forward to

The company released the third quarter performance report, and the company achieved revenue 8 in the first three quarters.

7.3 billion / + 3.

04%, achieving net profit attributable to mother 1.

8.7 billion / + 10.

34%, deducted non-net profit1.

8.2 billion / + 7.


The company achieved revenue in the third quarter alone3.

$ 4.4 billion / + 6.

65%, realized net profit attributable to mother 1.

09 ppm / + 10.

52%, deducted non-net profit1.

08 ppm / + 9.


  Core point of view The revenue growth rate has increased significantly from the previous quarter, and the impact of price reductions has gradually been digested.

The company’s revenue growth rate in the third quarter alone was 6.

65%, Q1 / Q2 growth of -3.

38% / 5.

09%, the revenue growth rate increased significantly month-on-month, the highest single-quarter revenue growth rate since the third quarter of 2017.

The main indicators of the recovery in revenue growth are: (1) the price cuts in the same 杭州夜网 period last year were affected by a certain number of shocks; (2) the ropeway business benefited from the double improvement in capacity and experience after the 10,000-year cableway transformation, and the rebound was significant;”In the beginning of September, the performance provided absolute growth in the third quarter.

  The gross profit margin maintained a slight improvement, financial expenses management offset the increase in sales expenses and management expenses, and profitability continued to improve.

The company achieved a gross profit margin of 47 in the third quarter.

69% / + 0.

21pct, gross profit margin increased steadily, sales expense ratio / management expense ratio / financial expense injection1.

6% / 10.

07% /-1.

99%, change 0 every year.

23pct / 1.

05pct / -2.

13pct, financial expense ratio 杭州夜网论坛 control hedging sales expenses and management expenses increased to achieve a net profit increase1.


  Looking at the medium and long term, the enrichment of tourism formats in the scenic spots + improved transportation will bring greater growth.

Looking ahead, the company has a lot of room for improvement, and it is expected to break through the existing passenger flow growth and acceleration in two directions: 1.

Enhancing leisure travel attributes: The construction of the “Only Emeishan” performing arts project was expanded in June 18 and officially launched in September 19th. The performing arts project has more rich attractions and content, which enhances the leisure travel attributes; 2.

The “difficult Shu Road” is constantly breaking through, and the elasticity of revenue in the nearby off-season is expected to be released.

The West Chengdu High Speed Rail has been put into use. The Chengdu-Guizhou High Speed Rail is expected to be opened in 2019, and the continuous improvement of future traffic and transportation will improve the attractiveness of nearby consumers to surrounding provinces and cities. The off-season passenger flow flexibility such as weekend tours is expected to be released.

  The financial forecast and investment recommendations have exceeded the expected growth of the company’s revenue, and adjusted the EPS forecast for 19-21 to 0.


55 yuan (0 before adjustment.



56 yuan), using comparable company estimation method to give the company 17 times PE for 20 years, with a target price of 8.

5 yuan, maintaining the “buy rating” risk indicates a major natural disaster, passenger flow is lower than expected after the opening of the high-speed rail, and ticket prices are reduced