HSTD(SH:600054) Southwest Securities·2024-04-22 10:00Investment Rating - The report maintains a "Buy" rating for Huangshan Tourism (600054) [1][2] Core Views - The company has shown significant growth in its cableway business revenue and gross margin compared to pre-pandemic levels, with 2023 cableway revenue reaching 700 million yuan, a 26.3% increase from 2019, and a gross margin of 88.52%, up 1.3 percentage points from 2019 [1] - The overall revenue for the company in 2023 was 1.93 billion yuan, a 20.1% increase compared to 2019, with a net profit of 420 million yuan, marking a return to profitability and a 24.3% increase from 2019 [13] - The company is expected to benefit from favorable policies and a steady increase in tourist traffic, with projected net profits for 2024-2026 being 520 million, 620 million, and 710 million yuan respectively [2][5] Summary by Sections Revenue and Profitability - The company's revenue for 2023 was 1.93 billion yuan, with a gross margin of 54.0%, down 2.0 percentage points from 2019, and a net profit margin of 23.6%, up 1.0 percentage point from 2019 [13] - The forecast for revenue from 2024 to 2026 is 1.93 billion, 2.18 billion, 2.61 billion, and 2.91 billion yuan, with growth rates of 141.21%, 13.21%, 19.44%, and 11.68% respectively [15] Business Segments - The cableway business is projected to continue its growth trajectory, with expected revenue growth rates of 208.23%, 12.26%, 11.55%, and 9.23% from 2024 to 2026 [40] - The hotel business is expected to see a revenue increase of 106.76% in 2024, followed by more modest growth in subsequent years [40] Market Opportunities - The opening of the Chihuang High-speed Railway is anticipated to enhance tourist traffic to Huangshan, with a target of 5 million visitors in 2024, representing a 9.3% year-on-year increase [36] - The "Great Huangshan" policy aims to develop the region into a world-class leisure and wellness tourism destination, with significant investment planned to boost tourism infrastructure and services [14]