Investment Rating - The investment rating for the company is "Buy" (maintained) [2][6] Core Insights - The company experienced a strong recovery in tourist traffic during the summer of 2025, with Q3 revenue reaching 4.01 billion yuan, a year-on-year increase of 17.78%, and a net profit of 1.51 billion yuan, up 19.43% year-on-year [7][9] - The company has adjusted its profit forecasts for 2025-2027 due to potential disruptions from unusual weather, now expecting net profits of 1.77 billion yuan, 2.14 billion yuan, and 2.53 billion yuan respectively, reflecting year-on-year growth rates of 22.4%, 21.0%, and 18.6% [7][9] - The opening of the Shenbai high-speed railway is expected to enhance accessibility to the company’s attractions, potentially increasing visitor numbers from the Beijing-Tianjin-Hebei region [9] Financial Performance Summary - For the first three quarters of 2025, the company achieved revenue of 6.36 billion yuan, a year-on-year increase of 6.99%, and a net profit of 1.49 billion yuan, up 1.05% year-on-year [7] - The average revenue per visitor decreased by 2.4% to 198 yuan, attributed to a decline in hotel room rates, although the decline has narrowed compared to Q2 [8] - The company’s gross margin for Q3 was 57.5%, with a net profit margin of 37.78%, indicating strong seasonal profit support [8] Future Outlook - The upcoming winter season is anticipated to benefit from extended operational periods due to the later timing of the 2026 Spring Festival, which could enhance visitor flow [9] - The company’s non-public offering project has received regulatory approval, which is expected to accelerate the construction of the second phase of the volcanic hot spring project, further boosting visitor attraction capabilities [9][10]