两镇景区游客稳步增长，关注跨境游复苏机遇

Investment Rating - The investment rating for the company is "Buy" [14] Core Views - The company reported a revenue of RMB 9.635 billion in 2023, a year-on-year increase of 50.15%, and achieved a net profit of RMB 194 million, recovering from a loss of RMB 528 million in the previous year [3] - The company is expected to benefit from the recovery of the cultural tourism market, with a focus on the growth of its scenic hotel business and the revival of cross-border travel for its travel agency operations [3] - The company has shown significant improvement in its operational performance, particularly in its scenic spots and travel agency business, which are expected to continue to grow [3] Summary by Sections Financial Performance - In 2023, the company achieved a revenue of RMB 9.635 billion, up 50.15% year-on-year, and a net profit of RMB 194 million, recovering from a loss of RMB 528 million [3] - The fourth quarter of 2023 saw a revenue of RMB 2.9 billion, an increase of 80.99% year-on-year, with a net profit loss reduced to RMB 12 million [3] Scenic Spots and Travel Agency Business - The company’s scenic spots, particularly Wuzhen, received 7.7207 million visitors in 2023, a year-on-year increase of 568%, recovering to 84% of the 2019 level, generating revenue of RMB 1.784 billion, up 183.65% [3] - The travel agency business reported revenue of RMB 1.298 billion in 2023, a year-on-year increase of 179.62%, benefiting from the recovery of international flights and the expansion of visa-free policies [3] Hotel Business - The hotel business is gradually recovering, with the Shanshui Hotel generating revenue of RMB 410 million in 2023, a year-on-year increase of 27.77%, although it has not yet achieved profitability [3] - The overall marketing and operational performance of the company has improved significantly, with integrated marketing revenue reaching RMB 2.187 billion, up 108.99% year-on-year [3] Valuation - The company’s EPS estimates for 2024-2026 have been adjusted to RMB 0.52, 0.69, and 0.86, respectively, with corresponding PE ratios of 20.9, 15.8, and 12.6 [3]