Investment Rating - The report assigns an "Accumulate" rating for Jiuhua Tourism (603199) [1] Core Views - Jiuhua Tourism has a stable flow in its main tourism business, benefiting from the scarcity of scenic resources and strong anti-cyclical characteristics [7] - The company has a clear project reserve and a quantifiable long-term growth momentum [8] - The company is expected to achieve revenue growth of 18% in 2025, 15% in 2026, and 10% in 2027, with net profit growth of 23%, 21%, and 17% respectively [10] Summary by Sections Company Overview - Jiuhua Tourism is based on the core scenic area of Jiuhua Mountain, a national 5A-level Buddhist site, forming a comprehensive tourism service system including cable cars, hotels, passenger transport, and travel agencies [9][12] - The company has a stable and diverse revenue structure, with significant visitor loyalty due to the cultural heritage of Jiuhua Mountain [17] Financial Performance - The core profit source, the cable car business, is expected to maintain a gross margin above 85% from 2023 to 2024, contributing approximately 38.33% of the company's revenue in 2024 [9] - The hotel business, while currently weaker with a gross margin of 16% in 2023, is expected to improve due to location advantages and operational efficiency [9] - Revenue has shown strong recovery post-pandemic, with a 118% year-on-year increase in 2023 and a 25% increase compared to pre-pandemic levels in 2019 [25] Growth Drivers - The opening of the Chihuang High-speed Railway in April 2024 is expected to significantly enhance accessibility to Jiuhua Mountain, boosting overall attractiveness [9] - The Lion Peak cable car project is anticipated to start operations in 2026, potentially contributing an average annual revenue of 1.11 billion yuan and a net profit of 0.5 billion yuan over the next 15 years [60][63] Investment Projections - The company plans to raise up to 500 million yuan through a private placement to fund key projects, including the Lion Peak cable car and hotel renovations [75] - Earnings per share (EPS) is projected to rise to 1.53 yuan in 2025 and 1.94 yuan in 2026, reflecting a significant improvement in profitability [75]

Core Viewpoint - The company reported steady growth in revenue and net profit for 2024, driven by increased passenger traffic and operational improvements in its core business segments [1][2][4] Financial Performance - In 2024, the company achieved revenue of 764 million yuan, a year-on-year increase of 5.64%, and a net profit attributable to shareholders of 186 million yuan, up 6.50% year-on-year [1] - The fourth quarter of 2024 saw revenue of 195 million yuan, a significant year-on-year increase of 20.65%, and a net profit of 32 million yuan, up 41.79% year-on-year [1][2] - The overall gross margin for 2024 was 50.21%, an increase of 0.59 percentage points year-on-year, while the net profit margin was 24.33%, up 0.19 percentage points year-on-year [1][2] Business Segments - The company's cable car business generated revenue of 293 million yuan, a slight decrease of 0.56% year-on-year, while the hotel business achieved revenue of 237 million yuan, up 1.05% year-on-year [2] - The passenger transport business saw a significant revenue increase of 31.24% year-on-year, reaching 159 million yuan, primarily due to the operational launch of the Jiuhua Mountain Transportation Hub [2] - The travel agency segment reported revenue of 62 million yuan, down 7.53% year-on-year [2] Market and Strategic Developments - The company leverages its unique Buddhist cultural resources and tourism attributes to create a comprehensive service system combining cable cars, hotels, passenger transport, and travel agencies [3] - The company is enhancing its service capacity and internal transportation connections to support future growth, with expectations of increased tourist traffic in 2025 [3] - The company is advancing its "regional tourism complex" strategy, optimizing transportation efficiency during peak periods and expanding its culinary offerings with new vegetarian brands [3][4] Policy and Operational Efficiency - The company is benefiting from supportive policies aimed at revitalizing the tourism sector, with initiatives from the Ministry of Commerce and other departments to enhance service quality and consumer experience [4] - Investments in digital systems and membership programs are expected to improve operational efficiency and customer engagement [4] - The company is actively participating in tourism promotion activities to broaden its business channels and enhance the attractiveness of its scenic areas [4]