UTour (002707) Guotou Securities·2024-09-02 06:44Investment Rating - The investment rating for the company is "Buy - A" with a 6-month target price of 7.61 CNY, compared to the current stock price of 6.35 CNY [5]. Core Insights - The company reported a significant increase in revenue and profit for the first half of 2024, with total revenue reaching 2.617 billion CNY, up 230.25%, and net profit attributable to shareholders at 72 million CNY, up 307.90% [1]. - The tourism market in China is experiencing a robust recovery, driven by optimized inbound and outbound policies, which has led to a rapid growth in order volume and operational efficiency [3]. - The company has successfully improved its gross margin and reduced costs, achieving a net profit margin of 2.74% in the first half of 2024, a significant increase from the previous year [2]. Financial Performance Summary - In Q2 2024, the company achieved revenue of 1.592 billion CNY, an increase of 143.25%, and a net profit of 44 million CNY, reflecting a remarkable growth of 1369.27% [1]. - The gross margin for the first half of 2024 was 13.07%, up 2.06 percentage points year-on-year, while the net profit margin improved to 2.74%, up 7.10 percentage points [2]. - The company’s cash flow from operating activities reached 421 million CNY, a staggering increase of 9780.34%, indicating strong customer payments and prepayments [1]. Market Outlook - The tourism market is expected to continue its upward trend into the second half of 2024, with the peak travel season approaching and the recovery of international flights, which will likely boost outbound tourism business [3]. - The company is enhancing its product offerings with a focus on differentiated customized travel experiences, which is expected to meet the high-quality travel demands of customers [3]. - The company’s partnership with various international tourism boards aims to strengthen its market position and expand its service offerings [3]. Strategic Initiatives - The company is leveraging its stake in the Hangzhou Axin platform to enhance industry chain collaboration, resulting in increased user engagement and transaction volume [4]. - The platform has seen a 35% increase in registered travel consultants and stores, with a peak monthly transaction value of 40 million CNY, reflecting a 779% year-on-year growth in payment GMV [4]. - The company plans to deepen its integration of outbound travel products and expand into the domestic travel market, focusing on resource supply and user retention [4].