UTour (SZ:002707) Zheng Quan Zhi Xing·2025-06-27 03:18Core Viewpoint - The company has shown a significant recovery in performance post-pandemic, achieving record sales during the summer season, but faces challenges with declining revenue growth and high expenses impacting profitability [1][2][4]. Group 1: Financial Performance - In 2023, the company reported revenue of 32.98 billion yuan and a net profit of 322.7 million yuan, marking year-on-year increases of 550.6% and 114.58% respectively [2]. - For 2024, the company expects revenue to rise to 64.55 billion yuan and net profit to 1.059 billion yuan, reflecting year-on-year growth of 95.7% and 228.18% [2]. - However, the revenue growth rate has sharply declined, with the first quarter of 2024 showing revenue of 11.65 billion yuan and a net profit of 18.96 million yuan, representing year-on-year growth rates of only 13.74% and a decline of 32.39% respectively [3]. Group 2: Market Position and Challenges - The company’s revenue in 2024 is only 50.9% of its 2019 level, indicating a significant gap in recovery compared to the overall domestic tourism market, which has surpassed pre-pandemic spending levels [4]. - Sales expenses have surged, with a 103.29% increase in 2024 to 547.6 million yuan, outpacing revenue growth, highlighting challenges in market expansion [4]. - The company’s sales expense ratio has been on the rise, reaching 10.65% in the first quarter of 2024, compared to 8.17% in 2023 [4]. Group 3: Profitability Issues - The company has struggled with low gross margins, with a gross margin of only 11.95% for its core wholesale tourism business, significantly lower than the industry average of 30% [6]. - The gross margin has shown little improvement over the years, fluctuating between 5.96% and 13% from 2021 to 2024 [6]. - The company’s business model, which relies on purchasing tourism resources and selling them through travel agencies, limits its pricing power and profit margins [6][7].