Investment Rating - The report assigns an "Accumulate" rating to the company, marking its first coverage [6][53]. Core Insights - The company is a leading player in the cultural tourism sector in Shaanxi, with strong profitability driven by its core businesses, including the performance "Chang Hen Ge" and the Xifeng Cableway, both of which have been operational for over ten years [6][53]. - The company has seen significant revenue growth since 2023, largely due to the successful introduction of the winter version of "Chang Hen Ge," which mitigated seasonal fluctuations [6][18]. - The company is expected to benefit from recent consumer spending policies favoring service consumption, with projected earnings per share of 5.68 yuan and 6.72 yuan for 2025 and 2026, respectively [6][53]. Summary by Sections 1. Business Overview - The company is a subsidiary of Shaanxi Tourism Group, leveraging the province's rich historical and cultural resources to build a business model centered around tourism performances, cable cars, and dining [6][13]. - The flagship performance "Chang Hen Ge" has been a staple since its launch in 2007, showcasing a historical love story and has established a robust operational model [6][40]. 2. Market Recovery - The domestic travel market has rapidly recovered post-pandemic, with a notable increase in travel numbers and spending, indicating a shift towards experiential consumption in tourism [32][34]. - In 2024, Shaanxi Province is expected to receive 817 million domestic tourists, generating a total tourism revenue of approximately 766.8 billion yuan, reflecting a year-on-year growth of 14.0% and 16.5%, respectively [34]. 3. Business Analysis 3.1 Tourism Performances - The company has developed a performance matrix centered around "Chang Hen Ge," which is expected to generate nearly 700 million yuan in revenue in 2024 [37]. - The introduction of the winter version of "Chang Hen Ge" has been well-received, contributing to significant revenue increases [18][40]. 3.2 Cable Car Business - The Xifeng Cableway is a key revenue source, with stable profitability and expected revenue of 390 million yuan in 2024 [44]. - The cableway's location at Huashan, a major tourist destination, enhances its appeal and usage rates [47]. 3.3 Shareholder Background - The controlling shareholder, Shaanxi Tourism Group, has a strong resource base and a stable shareholding structure, which supports the company's growth and operational strategies [16][51]. 4. Investment Strategy - The company is positioned as a leader in the cultural tourism sector, with a strong operational model and profitability metrics that surpass comparable companies [6][53]. - The anticipated earnings growth and favorable market conditions suggest a positive outlook for the company's stock performance [53].
陕西旅游（603402）：陕西文旅龙头，盈利能力强劲