HSTD(600054) Changjiang Securities·2025-05-09 05:15Investment Rating - The report maintains a "Buy" rating for the company [2][9]. Core Insights - In Q1 2025, the company achieved operating revenue of 403 million yuan, a year-on-year increase of 19.79%, and a net profit attributable to the parent company of 35 million yuan, up 55.79% year-on-year. The company is expected to benefit from improved transportation conditions and hotel project renovations, leading to steady revenue growth [2][6]. - The opening of the Chi-Huang high-speed railway in 2024 and improved weather conditions are anticipated to further increase visitor numbers to the mountains. Upgrades to hotels are expected to enhance both volume and pricing [2][11]. - The forecasted net profits attributable to the parent company for 2025-2027 are 354 million, 393 million, and 436 million yuan, respectively, with corresponding price-to-earnings ratios of 24, 22, and 20 times [2][11]. Financial Performance - The company reported a gross margin of 39.24% in Q1 2025, a decrease of 0.23 percentage points year-on-year, while the expense ratio improved, decreasing by 1.88 percentage points to 21.06%. The net profit margin increased by 1.11 percentage points to 9.74% [11]. - The total number of visitors to the Huangshan scenic area reached 1.012 million in Q1 2025, representing a year-on-year growth of 22.34%, which contributed to revenue and profit growth [11]. Future Outlook - The company is expected to see a rise in visitor numbers in Q2 2025 due to the reopening of the West Sea Grand Canyon and the North Sea Hotel renovation project, which is set to be completed by September 2025, potentially providing new revenue streams [11]. - The integration of AI travel assistants is expected to enhance customer experience and operational efficiency, further supporting revenue growth [11].