CYTS(SH:600138) CAITONG SECURITIES·2025-09-01 05:21Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company's performance is under pressure due to intensified competition and adverse weather conditions, leading to a decline in visitor numbers and revenue [7] - The company reported a revenue of 4.866 billion yuan in the first half of 2025, representing a year-on-year increase of 11.84%, while the net profit attributable to shareholders was 67 million yuan, down 7.88% year-on-year [7] - The forecast for net profit attributable to shareholders for 2025-2027 is 168 million, 208 million, and 279 million yuan respectively, with corresponding PE ratios of 44X, 36X, and 27X [7] Financial Performance Summary - Revenue for 2023 is projected at 9.635 billion yuan, with a growth rate of 50.1%, and is expected to reach 11.052 billion yuan by 2025, with a growth rate of 11.0% [6][8] - The net profit for 2023 is estimated at 194 million yuan, with a projected decline of 17.3% in 2024, followed by a recovery to 168 million yuan in 2025 [6][8] - The company's gross margin for the first half of 2025 was 21.35%, down 2.76 percentage points year-on-year, primarily due to a decline in visitor numbers [7] Visitor and Revenue Trends - The revenue from the Wuzhen Scenic Area and the Gubei Water Town in the first half of 2025 was 742 million yuan and 205 million yuan, respectively, reflecting year-on-year declines of 13.56% and 25.29% [7] - The number of visitors to the Wuzhen Scenic Area decreased by 11.92% to 3.3712 million, while the Gubei Water Town saw a visitor decline of 18.37% to 490,100 [7]