JHT(SH:603199) Minsheng Securities·2024-07-30 23:00Investment Rating - The report maintains a "Recommended" rating for Jiuhua Tourism, with a target price of 28.19 yuan [1]. Core Insights - Jiuhua Tourism reported a revenue of 395 million yuan for H1 2024, a year-on-year increase of 3.91%, and a net profit attributable to shareholders of 114 million yuan, up 2.65% year-on-year. In Q2 2024, revenue reached 215 million yuan, reflecting a 14.17% year-on-year growth, while net profit increased by 25.70% to 62 million yuan [1]. - The company is expected to benefit from three main growth drivers: 1) Traffic optimization through parking lot expansion and the opening of the Chi-Huang high-speed railway; 2) High earnings elasticity from hotel, cable car, and passenger transport businesses; 3) Sustained demand due to Jiuhua Mountain's popularity as a Buddhist pilgrimage site [1]. - The report forecasts net profits for 2024, 2025, and 2026 to be 202 million, 219 million, and 241 million yuan, respectively, with corresponding PE ratios of 16X, 15X, and 14X [1]. Summary by Sections Financial Performance - For H1 2024, Jiuhua Tourism's total assets reached 382 million yuan, a 51.62% increase year-on-year, and net assets were 258 million yuan, up 19.39% year-on-year. The net profit for H1 2024 was 35 million yuan, marking a 59.36% increase year-on-year [1]. - Q2 2024 saw a gross margin of 53.75%, an increase of 4.57 percentage points year-on-year, and a net margin of 28.97%, up 2.66 percentage points year-on-year [1]. Investment Projects - The Lion Peak scenic area cable car project has completed approval and bidding processes, with an expected delivery in November 2026. The project involves a total investment of 326 million yuan, with 295 million yuan allocated for the cable car and 31 million yuan for the mountain trail [1]. Future Outlook - The demand for Jiuhua Mountain is expected to remain strong due to its status as a well-known tourist destination and a Buddhist site. The report highlights that the expansion of parking facilities and the opening of the Chi-Huang high-speed railway will enhance visitor capacity and drive future growth [1].