QJCT(SH:600706)2024-02-04 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the company's stock price will outperform the benchmark index by 10%-20% over the next 6-12 months [2][16]. Core Views - The company is projected to achieve profitability in 2023, with an expected net profit of RMB 17 million to RMB 23 million, a significant recovery from a loss of RMB 249 million in the previous year [5]. - The tourism market is showing signs of recovery, with expectations for continued growth in domestic travel in 2024, supported by a 395% year-on-year increase in tourism orders during the New Year period in Xi'an [5]. - The company is expected to leverage its resource advantages to enhance the quality of its tourism offerings, with national tourism revenue and visitor numbers projected to grow by 22.45% and 24.48% respectively in 2024 [5]. Financial Summary - The company's main revenue (in RMB million) is projected to increase from RMB 891 million in 2022 to RMB 1,473 million in 2023, reflecting a growth rate of 65.3% [5]. - EBITDA is expected to recover from a loss of RMB 25 million in 2022 to RMB 322 million in 2023 [5]. - The net profit margin is projected to improve significantly, with the net profit expected to rise to RMB 22 million in 2023 from a loss of RMB 249 million in 2022 [5]. - The diluted earnings per share (EPS) is forecasted to be RMB 0.09 in 2023, up from a loss of RMB 0.98 in 2022 [5]. - The price-to-earnings (P/E) ratio is expected to decrease from 413.0 in 2021 to 136.2 in 2023, indicating a more favorable valuation as profitability improves [5].