商旅出行全面复苏，出入境游修复空间仍较大

Investment 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 [4][8]. Core Views - The company achieved a significant revenue increase of 229.02% year-on-year, reaching RMB 3.404 billion in 2023, and reported a net profit of RMB 68.84 million, marking a turnaround from losses [1][2]. - The recovery in the business travel market is robust, with the company capitalizing on market opportunities, leading to substantial growth in operating performance [1][2]. - The company is actively expanding its business scope, with a strategic national layout that has increased the revenue contribution from branches to 38%, up 21 percentage points from 2019 [1][2]. Summary by Sections Financial Performance - In 2023, the company reported total revenue of RMB 3.404 billion, a year-on-year increase of 229.02%, and a net profit of RMB 68.84 million, with a gross margin of 20.87% and a net margin of 2.39% [1][2]. - The fourth quarter alone saw revenue of RMB 919 million, a remarkable year-on-year growth of 409.32% [1][2]. - The company’s financial metrics improved, with selling and administrative expense ratios at 7.68% and 9.37%, respectively [1][2]. Business Expansion - The company is expanding its business footprint, with a focus on business travel and accommodation sectors, having added 31 new hotel management projects in 2023 [1][2]. - The company has established a national strategic layout with operational centers across various regions, enhancing its market presence [1][2]. Recovery Potential - The outbound tourism business remains under recovery, with 2023 revenues from outbound travel at RMB 759 million, still below pre-pandemic levels where such revenues constituted over half of total income [1][2]. - The company has increased its resource suppliers to over 100 and organized 50 outbound travel launch groups in 2023, indicating strong potential for further recovery in this segment [1][2]. Valuation - The report adjusts the EPS forecasts for 2024-2026 to RMB 0.34, RMB 0.42, and RMB 0.43, respectively, with corresponding P/E ratios of 26.3, 21.3, and 21.0 times [1][2].