Investment Rating - The industry investment rating is "Outperform the Market" [1][36] Core Viewpoints - Economic performance is steadily recovering, but consumer confidence still needs further boosting. In June 2025, the total retail sales of consumer goods reached 4.2 trillion yuan, with a year-on-year increase of 4.8%. The GDP for the first half of 2025 was 66.05 trillion yuan, reflecting a year-on-year growth of 5.3% [1][3] - The overall economic operation in the first half of 2025 was stable, with consumption playing a significant supporting role. The total retail sales for the first half of 2025 reached 24.55 trillion yuan, a year-on-year increase of 5.0% [3][4] Summary by Sections Economic Performance - The GDP growth for the first half of 2025 was 5.3%, with contributions from the primary, secondary, and tertiary industries at 3.6%, 36.2%, and 60.2% respectively. The growth pace aligns with the annual target of 5% [3][4] - The retail sales of goods increased by 5.1%, while restaurant income grew by 4.3% in the first half of 2025. The service retail sales also saw a year-on-year growth of 5.3% [3][4] Consumer Confidence - The average urban unemployment rate in the first half of 2025 was 5.2%, showing stability, but consumer confidence has not significantly improved. The consumer confidence index was at 88.0 in May, indicating a low level of confidence [3][4] Investment Recommendations - The report suggests focusing on companies likely to benefit from the recovery in tourism and travel demand, such as Lingnan Holdings and Tongcheng Travel. Other recommended companies include those in the business and exhibition sectors, as well as various hospitality and entertainment firms [3][4]

Core Viewpoint - Xiyu Tourism (300859) is expected to achieve a net profit of 9 million to 11 million yuan in the first half of 2025, leveraging the booming tourism in Xinjiang and developing new projects like "Encounter Kashgar" and "Encounter Sailake" [1][2] Group 1: Financial Performance - The company anticipates a net profit of 9 million to 11 million yuan for the first half of 2025 [1] - The tourism industry in Xinjiang has shown significant growth, with 132.78 million visitors and a total expenditure of 142.56 billion yuan, reflecting year-on-year increases of 11.15% and 11.59% respectively [1] Group 2: Business Development - Xiyu Tourism is focusing on enhancing its service offerings by providing comprehensive tourism services, including transportation, sightseeing boats, cable car tours, and RV camps [1] - The company is developing immersive performance brands under the "Encounter" series to create new growth avenues [1] - The "Encounter Kashgar" project has attracted over 13 million visitors in the first half of the year, showcasing the potential of new tourism formats like intangible cultural heritage workshops and aerial gardens [1] Group 3: Challenges and Strategic Response - The decline in performance is attributed to the early-stage market cultivation of new tourism projects, which require further development of revenue and profitability [2] - The company plans to increase promotional efforts, adjust marketing strategies, and enhance service quality to capture a larger market share and ensure expected project returns [2] Group 4: Shareholder Confidence - The controlling shareholder, Xinjiang Cultural Tourism Investment, plans to increase its stake in the company by acquiring between 1.085 million and 2.0925 million shares, representing 0.70% to 1.35% of the total share capital [2] - As of July 4, 2025, Xinjiang Cultural Tourism Investment has already increased its holdings by nearly 560,000 shares, raising its ownership from 28.79% to 29.00% [2]

Core Viewpoint - The company Tianmu Lake (603136.SH) has reported a continuous decline in revenue for five consecutive quarters, with a significant drop in both revenue and net profit for 2024, indicating a challenging development situation amidst a recovering domestic tourism market [1][2][3]. Group 1: Core Scenic Area Business - The core scenic area business, which accounts for over 50% of the company's revenue, experienced a significant decline, with revenue for 2024 reaching 282.4 million yuan, down 13.03% year-on-year, and main profit dropping by 32.5% [2][3][4]. - The main profit margin for the scenic area business decreased to 70.43%, a reduction of 0.81 percentage points compared to the previous year [2][3]. - The two major 5A scenic areas, Shanshui Garden and Nanshan Bamboo Sea, both saw declines in revenue and main profit for 2024, with Shanshui Garden's revenue down 17.47% and Nanshan Bamboo Sea's down 7.58% [4][5]. Group 2: Hotel Business - The hotel business, which contributes nearly 30% to the company's revenue, also faced a sharp decline, with 2024 revenue falling to 159.4 million yuan, a decrease of 23.1%, and main profit down 27.86% [6][7]. - The gross profit margin for the hotel business dropped significantly from 29.88% to 21.4%, indicating substantial operational pressure [6][7]. - The performance of the hot spring and water world businesses, aimed at boosting off-peak season revenue, also saw significant declines, with the water world business revenue plummeting by 41.28% [7]. Group 3: Fundraising Projects - The company has two fundraising projects initiated in 2020 that have faced multiple delays, with the expected completion dates pushed back to December 2025 [8][10]. - The South Mountain Xiaozhai project and the Yushui Hot Spring renovation project have seen minimal progress, with only 8.14% of the projects completed as of the latest updates [10]. - The prolonged delays and changing market conditions raise uncertainties about the future performance of these projects, which were intended to enhance the company's competitiveness and profitability [10].

Core Viewpoint - In 2024, Sanxia Tourism experienced a significant decline in both revenue and net profit, primarily due to the divestiture of its automotive sales business and the underperformance of the Jiufeng Valley scenic area, which has become a financial burden for the company [2][5]. Financial Performance - In 2024, the company reported total revenue of 741.32 million yuan, a decrease of 53.68% year-on-year [5]. - The net profit attributable to shareholders was 117.59 million yuan, down 9.29% compared to the previous year [5]. - The net profit after deducting non-recurring gains and losses was 96.29 million yuan [1]. Business Segments - The core business segments, including sightseeing cruise services and travel agency operations, saw revenue growth of 17.73% and 14.04%, respectively [3]. - The total number of tourists served by cruise products in 2024 was 2.56 million, a slight increase of 1.93% year-on-year [3]. - The Jiufeng Valley scenic area, acquired by the company, reported revenue of only 2.5 million yuan in 2024, a decline of 48.38% [4]. Strategic Changes - The company divested 70% of its stake in the automotive sales business, which significantly impacted its revenue [2]. - The divestiture included selling 20% of the stake to the controlling shareholder and transferring all debts related to the automotive sales company [2]. - The company aims to extend its tourism service offerings by adding new scenic area operations, despite the challenges faced by Jiufeng Valley [4]. Legal and Compliance Issues - Jiufeng Valley has not demonstrated profitability since its acquisition, failing to meet profit commitments in 2021 and 2022, leading to a compensation obligation for the seller [6]. - The seller, Pei Daobing, has appealed a court ruling regarding the failure to fulfill performance compensation commitments, with the case still pending [6].

Core Viewpoint - Yunnan Tourism Co., Ltd. plans to issue A-shares to specific investors, which may dilute immediate returns for existing shareholders, and the company has committed to measures to mitigate this impact [1][2][7]. Financial Impact Analysis - The issuance of shares is expected to increase the total share capital from 1,012,434,813 shares to 1,053,891,115 shares, with an estimated fundraising amount of 1.905 billion yuan [4]. - The projected net profit for 2025 under three scenarios shows potential losses ranging from -26.18 million yuan to -39.27 million yuan, depending on the performance relative to 2024 [6][8]. - Basic and diluted earnings per share are projected to improve from -0.3233 yuan to a range of -0.2484 to -0.3726 yuan, depending on the profit scenario [4][6]. Necessity and Reasonableness of the Issuance - The funds raised will be used for the construction of the Chuzhou Overseas Chinese Town Cultural Tourism Equipment Industrial Park and to repay interest-bearing debts, which aligns with the company's existing business operations [8][10]. - The project aims to enhance production capacity and improve the company's capital structure, thereby increasing profitability and competitive strength [8][10]. Project Implementation and Technical Readiness - The company has a strong technical team with nearly 50 professionals and a history of innovation, ensuring the successful implementation of the fundraising projects [9]. - The company has established a solid market foundation and brand advantage, which will support the execution of the investment projects [10]. Measures to Mitigate Dilution of Immediate Returns - The company will implement strategies to enhance operational efficiency and increase future earnings to offset the dilution of immediate returns from the share issuance [11]. - Strict adherence to regulations regarding the management and use of raised funds will be maintained to prevent misuse and ensure effective project execution [11][12]. Commitment from Key Stakeholders - The company's board and senior management have committed to fulfilling their responsibilities and ensuring the effectiveness of measures to compensate for any dilution of immediate returns [13].