Core Insights - The report highlights that tourism volume is increasing while prices remain stable, with a focus on policy support and advancements in AI applications within the sector [3][9] - The domestic travel market saw 314 million trips during the May Day holiday, a year-on-year increase of 6.4%, with total spending reaching 180.27 billion yuan, up 8.0% [9][21] - The report suggests that the tourism trend will continue to improve due to consumer experience demands and favorable industry policies, recommending investments in leading companies benefiting from these trends [3][42] Market Review - In April, the consumer services sector outperformed the benchmark by 1.42 percentage points, with strong performances from tourism and education stocks [4][6] - The May Day holiday saw significant gains in the education sector and travel-related stocks, with notable performances from companies involved in AI-enhanced education [4][6] Sub-industry Analysis - **Inbound and Outbound Travel**: Inbound travel saw a 28.7% increase in visitor numbers during the May Day holiday, with significant growth in travelers from Hong Kong, Macau, and Taiwan [16][21] - **Hotel Industry**: The hotel sector experienced a 11.5% increase in revenue per available room (RevPAR) during the holiday, with occupancy rates and average daily rates also rising [24][22] - **Scenic Areas**: Major scenic spots reported strong visitor numbers, with some locations seeing over 50% growth compared to the previous year, aided by favorable weather and local government initiatives [25][28] - **Dining Sector**: Key monitored dining enterprises reported an 8.7% increase in sales during the holiday, reflecting a recovery in consumer spending [29][30] - **Duty-Free Sales**: Duty-free shopping during the holiday saw a decline of 7% in sales, although the average transaction value remained stable [35][41] Investment Recommendations - The report recommends focusing on leading companies that are expected to benefit from policy support and improving consumer sentiment, including Tongcheng Travel, Xueda Education, Jiuhua Tourism, and others [3][42]

Core Insights - The company reported a decline in revenue and net profit for 2024, with revenue at 751 million yuan and net profit at 155 million yuan, representing year-on-year decreases of 10.01% and 17.55% respectively [1][2] - In Q1 2025, the company experienced a significant drop in revenue and net profit, with figures of 17.27 million yuan and -36.79 million yuan, reflecting year-on-year declines of 77.32% and 864.17% respectively [1][2] Performance Analysis - The decline in 2024 performance is attributed to high base effects from 2023, which was a year of strong recovery post-pandemic, and cautious spending by exporters due to macroeconomic uncertainties [2] - The company did not hold its own exhibitions in Q1 2025, leading to a substantial revenue drop compared to the previous year when it hosted exhibitions in Indonesia and Vietnam [2] Future Outlook - The company anticipates a significant increase in VIP customer repurchase rates, projected to reach 60% for 2025, up from 36% at the end of Q1 2025, indicating strong customer recognition of the company's exhibition effectiveness [3] - The company plans to hold six self-organized exhibitions in Q2 2025, compared to four in the same period last year, suggesting a potential turnaround in performance [3] Strategic Initiatives - The company is actively integrating AI into its exhibition services, launching "AI Exhibition 1.0" which includes various AI applications aimed at enhancing efficiency in exhibition scenarios [4] - The company is also participating in strategic financing for Li Weike Technology to accelerate the development of AI technologies, indicating a commitment to innovation in the exhibition industry [4] Financial Projections - The company has revised its revenue forecasts for 2025-2027, now expecting revenues of 1.06 billion, 1.39 billion, and 1.58 billion yuan respectively, with net profits of 270 million, 370 million, and 430 million yuan [5] - The earnings per share (EPS) estimates have been adjusted to 1.18, 1.60, and 1.86 yuan for the years 2025-2027 [5]

Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company is experiencing short-term performance pressure but is expected to see a performance turning point in the future [1][5] - In 2024, the company is projected to achieve revenue and net profit attributable to shareholders of 751 million yuan and 155 million yuan, respectively, representing a year-on-year decline of 10.01% and 17.55% [2][3] - The first quarter of 2025 shows a significant decline in revenue and net profit, with figures of 17.27 million yuan and -36.79 million yuan, reflecting a year-on-year drop of 77.32% and 864.17% [2][4] Summary by Sections Event Overview - The company reported its performance for 2024 and Q1 2025, indicating a decline in both revenue and net profit due to high base effects and cautious spending from exporters [2][3] Analysis and Judgment - The decline in 2024 performance is attributed to two main factors: the high base from 2023, which saw significant growth due to post-pandemic demand, and a cautious outlook from exporters affecting their exhibition spending [3] - The revenue drop in Q1 2025 is primarily due to the adjustment of the exhibition schedule, with no self-hosted exhibitions held in that quarter compared to two in the same period last year [4] Future Expectations - The expected VIP customer repurchase rate for 2025 is projected to reach 60%, significantly higher than the previous year's rate, indicating strong customer recognition of the company's exhibition effectiveness [5] - The company plans to host six self-organized exhibitions in Q2 2025, up from four in the same period last year, suggesting a potential performance recovery [5] AI and New Growth Points - The company is actively integrating AI into its exhibition services, launching "AI Exhibition 1.0" to enhance efficiency and customer engagement [6] - Participation in strategic financing for AI technology development indicates a commitment to leveraging AI for future growth in the exhibition industry [6] Investment Recommendations - The revenue forecasts for 2025 to 2027 are adjusted to 1.064 billion yuan, 1.391 billion yuan, and 1.575 billion yuan, with net profits of 273 million yuan, 370 million yuan, and 429 million yuan, respectively [7] - The earnings per share (EPS) estimates for the same period are revised to 1.18 yuan, 1.60 yuan, and 1.86 yuan, maintaining an "Accumulate" rating based on the current market price [7]

Group 1: Core Views - The recent upgrades in stock ratings by brokerages are primarily concentrated in sectors with significant performance growth, rising industry sentiment, or turnaround situations, particularly in AI and robotics [2][5] - The number of stocks downgraded by brokerages has reached a year-to-date high, with notable downgrades in the coal and tourism sectors [5][6] Group 2: Upgraded Stocks - Multiple stocks in the AI and robotics sectors have received rating upgrades, including: - Platinum New Materials, with a projected net profit of 376 million yuan for 2024, a year-on-year increase of 46.9% [2] - Huichang Communications, expected to achieve a net profit of 29 million yuan in 2024, turning profitable with a 12.28% year-on-year revenue growth in Q1 [2] - Beijing Junzheng, with Q1 revenue of 1.06 billion yuan, a 5.3% year-on-year increase, and anticipated market recovery [3] - Keli Sensor, reporting a net profit of 76 million yuan in Q1, a nearly 76% year-on-year increase [3] - Nanshan Zhishang, recognized for its leading position in domestic wool spinning and new materials applications [3][4] Group 3: Downgraded Stocks - Several coal stocks have been downgraded, including: - Shanxi Coking Coal and Pingmei Shenma, downgraded to "overweight" due to weak coking coal prices [5] - Shanmei International, also downgraded to "overweight" despite low mining costs and potential production increases [5] - The tourism sector has seen downgrades, such as: - Jinjiang Hotels, with a Q1 net profit of 36 million yuan, down 81% year-on-year [5] - Miao Exhibition, downgraded due to declining revenue amid intensified competition [6] Group 4: Market Outlook - Brokerages are optimistic about AI and high-dividend sectors for May, with expectations of a continued oscillating market [7] - Recommendations include focusing on three main directions: financial dividends, self-sufficiency in industries like military, and domestic consumption [7] - The market is expected to follow a gentle recovery path, with attention on cyclical sectors and growth styles, particularly in AI and robotics [7]

Core Viewpoint - The company reported a decline in total revenue and net profit for 2024, attributing the decrease to intensified competition in overseas exhibitions, particularly in Southeast Asia, and insufficient government subsidies [1] Group 1: Financial Performance - Total revenue for 2024 was 751 million yuan, a year-over-year decrease of 10% [1] - Net profit attributable to shareholders for 2024 was 155 million yuan, down 18% year-over-year [1] - For Q1 2025, total revenue was 17 million yuan, reflecting a significant year-over-year decline of 77% [1] - Net profit for Q1 2025 was 37 million yuan, showing an extraordinary year-over-year increase of 864% [1] - Contract liabilities for Q1 2025 amounted to 193 million yuan, a year-over-year increase of 13.5% [1] Group 2: Exhibition Strategy - The company hosted 14 exhibitions across nine countries in 2024, with 7,500 participating enterprises and nearly 300,000 square meters of exhibition space [1] - The company is transitioning to specialized exhibitions while leveraging "AI + data" to enhance trade show formats [1] - In 2025, the company plans to hold nine industrial machinery exhibitions across eight countries, focusing on key markets such as the Belt and Road Initiative, RCEP, and BRICS countries [2] Group 3: Digitalization and Localization - The company is accelerating its digital transformation by integrating AI technology into exhibition services, launching the world's first AI-driven exhibition solution [2] - The company has established strategic points in Dubai, Indonesia, and Osaka, forming an initial overseas exhibition system [2] - Efforts are being made to localize exhibitor sources in overseas markets, with professional teams set up in Dubai and Indonesia for exhibitor recruitment [2] Group 4: Platform Development - The company aims to create a comprehensive exhibition service platform by deepening strategic partnerships with existing exhibition platforms and seeking collaboration opportunities with domestic platforms [3] - The company is focused on incubating more specialized exhibition projects by leveraging its strong exhibition platform [3] Group 5: Profit Forecast and Investment Rating - Due to trade pressures, the company has revised its net profit forecasts for 2025 and 2026 to 266 million yuan and 340 million yuan, respectively, down from previous estimates [3] - A new net profit forecast of 400 million yuan for 2027 has been introduced, with an adjusted investment rating of "Accumulate" based on the closing price on April 28 [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's sales performance met expectations, with a focus on new opportunities arising from geopolitical and foreign trade environment changes [4] - The company experienced a decline in revenue and net profit in 2024 due to the rescheduling of exhibitions, but there is a positive trend in booth sales [4][6] - The company is expected to benefit from strategic transformations and cost control measures, enhancing profitability in the coming years [5][6] Financial Performance Summary - In 2024, the company reported revenue of 751 million yuan, a year-over-year decrease of 10.1%, and a net profit of 155 million yuan, down 17.6% [4][7] - The company anticipates a recovery in revenue, projecting 947 million yuan in 2025, representing a year-over-year increase of 26.1% [7] - The gross margin for 2024 was 50.8%, with a net margin of 20.7%, showing slight improvements in profitability metrics [5][10] Business Segment Performance - Revenue from self-organized exhibitions, agency exhibitions, and digital exhibitions in 2024 was 680 million yuan, 60 million yuan, and 16 million yuan respectively, with year-over-year changes of -12.6%, +50.9%, and -25.4% [5] - The gross margins for these segments were 51.98%, 38.2%, and 48.6% respectively, indicating a mixed performance across different business lines [5] Future Outlook - The company plans to host 17 exhibitions in 11 countries in 2025, including new events in India and Saudi Arabia, although the feasibility of the Indian exhibitions remains uncertain [6] - The introduction of AI-driven exhibition products is expected to enhance participation effectiveness and boost revenue [6] - Profitability is projected to improve further due to scale effects, increased venue utilization, and refined operations [6]

Core Viewpoint - The company reported lower-than-expected annual performance for 2024, while Q1 2025 results met expectations, primarily due to seasonal adjustments in exhibition scheduling [1] Group 1: Financial Performance - In Q1 2025, the company achieved revenue of 17.27 million yuan, a year-on-year decline of 77.32%, and a net profit attributable to shareholders of -36.79 million yuan, a year-on-year decrease of 864.17% [1] - For the full year 2024, the company reported revenue of 751 million yuan, a decrease of 10.01% year-on-year, and a net profit of 155 million yuan, down 17.55% year-on-year [1] Group 2: Cost and Order Status - In Q1 2025, sales expenses increased by 12% to 36.04 million yuan, management expenses rose by 18% to 10.79 million yuan, and R&D expenses surged by 37% to 4.35 million yuan, reflecting increased investment in digitalization and AI-related initiatives [2] - As of March 2025, the company's contract liabilities reached 193 million yuan, a significant increase of 116.22% from the beginning of the year, indicating a strong order backlog and assurance of future revenue recognition [2] Group 3: Product Development and Market Expansion - The company launched the AI Hui Exhibition 1.0 product in January 2025, enhancing its O2O platform with AI capabilities and smart glasses, aiming to improve efficiency in connecting exhibitors and buyers [2] - The company plans to host exhibitions in 11 countries in 2025, with significant contributions expected from new markets like Saudi Arabia and the recovery of the Indian market, despite some uncertainties regarding Indian visas [3] Group 4: Investment Outlook - Despite Q1 losses due to seasonal effects, the substantial growth in contract liabilities indicates a positive outlook for future exhibitions [3] - The company has revised its profit forecasts downward for 2025-2026, now expecting net profits of 284 million yuan and 352 million yuan, respectively, while introducing a new forecast for 2027 at 426 million yuan [3]

Summary of Conference Call Notes Company Overview - The company discussed is 米奥会展 (Miao Exhibition), which operates in the exhibition industry. Key Points and Arguments Financial Performance - In 2024, exhibition revenue decreased by 10% to 751 million yuan, primarily due to strategic misalignment and reduced financial subsidies, although the digital exhibition model showed significant cost reduction and efficiency improvements, leading to a slight increase in gross margin [2][3] - In Q1 2025, revenue dropped significantly to over 10 million yuan, resulting in a loss of 37 million yuan, aligning with market expectations due to seasonal factors [2][6] - The company plans to host 17 exhibitions across 11 countries in 2025, with Q4 expected to contribute over half of the annual revenue and profit [2][8] Strategic Positioning - The company is focusing on refined management and cost control to navigate the economic downturn, while also increasing R&D investment, with Q1 R&D expenses rising over 30% year-on-year [2][7][10] - The introduction of the AI-based online exhibition product "AI 慧展" aims to create a new growth point with a target sales revenue of 100 million yuan and a gross margin of 60%-70% [2][12] Market Expansion and Opportunities - The company invested 25 million yuan for a 6% stake in 李维克 (Liweike) and plans to purchase 30,000 AI glasses for 30 million yuan, gaining exclusive sales rights for these glasses at domestic and international exhibitions [2][11] - The Saudi Arabian market is highlighted as having significant exhibition potential, with an increase in planned exhibition booths from 1,000 to 1,500 due to its affluent population [2][9][13] - The Indian market is also crucial, with plans for 2,000 booths, although current geopolitical tensions may hinder execution [2][14] Digital Transformation and AI Integration - The digital exhibition model has shown resilience, with a 20% year-on-year increase in booth sales, indicating strong market demand [2][4][15] - AI tools are being integrated to enhance participant experience and efficiency, with applications such as AI glasses for recording discussions and AI translation services under development [2][16][17] Government Support and Market Dynamics - Financial support from local governments is expected to boost participation in international exhibitions, alleviating the financial burden on companies [2][28][30] - The impact of the US-China tariff conflict has led many companies to shift focus from the US market to emerging markets, enhancing the attractiveness of participating in exhibitions in Southeast Asia and the Middle East [2][26][27] Future Outlook - The company remains optimistic about its performance in 2025, despite the challenges faced in Q1, and is focused on optimizing arrangements for better outcomes [2][6] - The development of a smart exhibition management system is underway, which will provide business functionalities and leverage a precise buyer database for market expansion [2][18][25] Additional Important Content - The company is differentiating its AI exhibition offerings from traditional O2O products, aiming for a 50% coverage rate among the expected 10,000 participating companies in 2025 [2][19] - The exclusive agency for AI glasses will be managed separately to ensure focused promotion and development [2][21][24]

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company reported a significant increase in contract liabilities, indicating strong future performance expectations [7] - The launch of the AI Hui Exhibition product is anticipated to enhance operational efficiency and revenue growth [7] - The company plans to host exhibitions in 11 countries in 2025, with new markets and professional transformation expected to drive growth [7] - Despite a seasonal decline in Q1 performance, the increase in contract liabilities suggests a solid order backlog for future revenue recognition [7] Financial Data and Earnings Forecast - Total revenue is projected to grow from 751 million in 2024 to 1,107 million in 2025, with a year-on-year growth rate of 47.3% [6] - The net profit attributable to shareholders is expected to rise from 155 million in 2024 to 284 million in 2025, reflecting an 82.9% increase [6] - The company’s gross margin is forecasted to improve from 50.8% in 2024 to 56.1% in 2025 [6] - The price-to-earnings ratio is projected to decrease from 29 in 2024 to 16 in 2025, indicating a more attractive valuation [6]

Core Insights - The company reported a significant decline in revenue and net profit for Q1 2025, with total revenue of 17.27 million yuan, down 77.32% year-on-year, and a net loss of 36.79 million yuan, a decrease of 864.17% compared to the same period last year [1][3] Financial Performance - Total revenue for Q1 2025 was 17.27 million yuan, ranking 20th among peers, a decrease of 58.86 million yuan from the previous year [1] - Net profit attributable to shareholders was -36.79 million yuan, ranking 19th among peers, down 41.61 million yuan year-on-year [1] - Operating cash flow was -12.67 million yuan, ranking 11th among peers, a decline of 32.30 million yuan compared to the same period last year [1] - The latest asset-liability ratio was 28.83%, ranking 13th among peers, an increase of 6.20 percentage points from the previous quarter [3] - Gross margin was 39.78%, down 11.06 percentage points from the previous quarter and 14.62 percentage points year-on-year [3] - Return on equity (ROE) was -6.27%, ranking 20th among peers, a decrease of 7.00 percentage points from the previous year [3] - Diluted earnings per share were -0.16 yuan, ranking 19th among peers, a decline of 0.18 yuan year-on-year [3] - Total asset turnover ratio was 0.02 times, ranking 20th among peers, down 76.05% year-on-year [3] - Inventory turnover ratio was 1.14 times, ranking 16th among peers [3] Shareholding Structure - The top ten shareholders hold a total of 149 million shares, accounting for 64.62% of the total share capital [4] - The largest shareholder is Fang Huansheng with a holding of 22.95% [4] - The second-largest shareholder is Pan Jianjun with a holding of 22.83% [4] - The company has a total of 13,200 shareholders [4]