Investment Rating - The report gives a "Buy" rating for the company [3][10]. Core Viewpoints - The tourism industry is currently experiencing growth driven by multiple factors, with policies supporting service consumption and an increase in travel demand due to optimized holiday systems [5][22]. - Shaanxi Tourism, as the only provincial-level cultural tourism listed platform controlled by the Shaanxi State-owned Assets Supervision and Administration Commission, benefits from rich cultural tourism resources and strong IP tourism performances, particularly with the show "The Long Hate Song" and the Huashan West Peak cableway [3][6]. - The company is expected to see significant profit growth, with projected net profits of 412 million, 469 million, and 514 million yuan for 2025-2027, corresponding to a PE ratio of 25, 22, and 20 times at the current stock price [3][10]. Summary by Relevant Sections Industry Overview - The tourism industry is in a growth phase driven by various factors, including continuous policy benefits and accelerated industry consolidation. The optimization of holiday systems has effectively stimulated travel demand, leading to a steady increase in industry prosperity [5][22]. - Shaanxi Province, as a significant birthplace of Chinese civilization, boasts three UNESCO World Heritage Sites and 17 5A-level scenic spots, providing a solid customer base and regional advantages for the company's business expansion [5][37]. Company Overview - Shaanxi Tourism is the only cultural tourism listed platform controlled by the Shaanxi State-owned Assets Supervision and Administration Commission, with a strong provincial state-owned background and significant resource integration advantages. The company focuses on two core businesses: tourism performances and cableway operations, supported by tourism dining services [6][52]. - The company has shown rapid revenue growth, with projected revenues of 1.26 billion yuan and a net profit of 510 million yuan for 2024, representing year-on-year growth of 16% and 20%, respectively [6][10]. Tourism Performances - The tourism performance segment is centered around "The Long Hate Song," which has been operating steadily for over 18 years, with projected attendance of 2.49 million in 2024, capturing about 65% of visitors to the Huaqing Palace. This segment contributes over 50% of the company's total revenue [7][10]. - The company has successfully replicated its performance model in other regions, indicating its capability for cross-regional project expansion [7]. Cableway Operations - The cableway business is characterized by its essential demand and high profitability. The Huashan West Peak cableway achieved revenue of 390 million yuan in 2024, with a gross profit margin of 67%, forming a solid profit foundation for the company [8][10]. Fundraising Projects - The company's IPO fundraising projects focus on expanding core business capabilities and integrating key assets. Approximately 50% of the raised funds will be allocated to the construction of the Taishan Xiucheng (Phase II) project, enhancing the replication of performance models and brand output [9][10].

Investment Rating - The report assigns a "Buy" rating to the company, with an initial coverage date of March 24, 2026 [1][5]. Core Insights - The company leverages its core tourism resources, including Huaqing Palace and Mount Huashan, supported by Shaanxi provincial state-owned assets. Its tourism performance and cableway operations are stable and profitable, with ongoing projects expected to enhance earnings and growth potential [3][5][8]. Financial Performance - The company’s revenue for 2023 is projected at RMB 1,088 million, with a growth rate of 369.3%. By 2025, revenue is expected to decline to RMB 1,081 million, followed by a recovery to RMB 1,259 million in 2026 and RMB 1,381 million in 2027 [7]. - The net profit attributable to the parent company is forecasted to be RMB 427 million in 2025, increasing to RMB 528 million in 2026 and RMB 586 million in 2027, with corresponding PE ratios of 23.5, 19.0, and 17.1 [5][7]. Business Overview - The company integrates performance, cableway, and dining services, utilizing unique tourism resources to create a high-quality cultural tourism destination. It has developed notable performances such as "The Long Hate Song" and operates key cableway projects like the West Peak Cableway at Mount Huashan [15][16]. - The company is backed by Shaanxi State-owned Assets Supervision and Administration Commission, which enhances its business development capabilities [16]. Industry Overview - The cultural tourism sector is experiencing a high level of demand, supported by favorable policies and a recovering market post-pandemic. The domestic tourism market is projected to see significant growth, with 2025 expected to witness 8.62 billion domestic tourists and a total tourism revenue of RMB 824.3 billion in Shaanxi province [42][44]. - The cableway business is characterized as a "cash cow," with high profitability and stability, while the performance sector is also showing strong growth, driven by increasing consumer demand for immersive experiences [52][53].

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [7]. Core Insights - Shaanxi Tourism is the first cultural tourism IPO in A-shares in the past five years and the only listed tourism platform under the Shaanxi State-owned Assets Supervision and Administration Commission. The company primarily relies on its 5A scenic spots, Huaqing Palace and Mount Huashan, focusing on three main business segments: tourism performances, cable cars, and dining [6][15]. - The company is expected to generate a net profit of 5.1 billion yuan in 2024, with a projected net profit of 3.7 billion yuan for the first three quarters of 2025. The company has sufficient cash on hand as of the end of Q3 2025 [6][7]. - The performance of the "Chang Hen Ge" show remains strong, contributing significantly to revenue, with a projected income of 6.8 billion yuan in 2024 and a gross margin of 79% [6][70]. - The company plans to raise 1.55 billion yuan through its IPO to invest in quality projects, which could contribute an additional 1.0 to 1.4 billion yuan to profits in the short term, significantly enhancing the company's performance in 2026 [6][7]. Summary by Sections 1. Company Overview - Shaanxi Tourism is backed by the Shaanxi State-owned Assets Supervision and Administration Commission, with its controlling shareholder holding 35.69% of the shares. The company has a diverse portfolio of tourism resources, including several unlisted scenic areas [21][27]. - The company has established a full industry chain layout focusing on performances, cable cars, dining, and project investments, with significant growth potential in the tourism sector [15][16]. 2. Current Projects - The "Chang Hen Ge" performance is a key revenue driver, with a high visitor conversion rate and stable gross margins. The company has also invested in cable car operations, which are essential for tourism at Mount Huashan [6][51]. - The cable car segment is expected to generate 4.7 billion yuan in revenue in 2024, accounting for 38% of total revenue, with a gross margin of 65% [6]. 3. Financial Projections - The company forecasts a net profit of 4.1 billion yuan in 2025, with a decline due to adverse weather conditions affecting visitor numbers. However, profits are expected to rebound to 5.2 billion yuan in 2026 and 6.0 billion yuan in 2027 [7][8]. - The projected earnings per share (EPS) for 2026 is 6.67 yuan, with a price-to-earnings (P/E) ratio of 21.31, indicating a relatively low valuation compared to peers in the tourism sector [8].

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [7]. Core Insights - The company, Shaanxi Tourism, is the first cultural tourism IPO in A-shares in the past five years and is the only listed tourism platform under the Shaanxi State-owned Assets Supervision and Administration Commission [6][20]. - The company primarily relies on its 5A scenic spots, Huaqing Palace and Mount Huashan, focusing on three main business segments: tourism performances, cable cars, and dining [6][15]. - The company is expected to achieve a net profit of 5.1 billion yuan in 2024, with a strong cash position as of Q3 2025 [6][7]. Summary by Sections 1. Company Overview - Shaanxi Tourism has established a full industry chain layout based on its 5A scenic resources, including performances, cable cars, dining, and project investments [15]. - The company was established in 1987 and has undergone several transformations, including a merger in 2016 that integrated key assets like the "Chang Hen Ge" performance and Taohua Cableway [15][16]. 2. Current Projects - The "Chang Hen Ge" performance is a significant revenue contributor, with a projected income of 6.8 billion yuan in 2024, maintaining a gross margin of 80% [6][57]. - The cable car segment, particularly the West Peak Cableway, is expected to generate 3.9 billion yuan in revenue in 2024, with a steady increase in passenger numbers [6][7]. 3. Fundraising Projects - The company plans to raise 1.555 billion yuan for projects including the second phase of Taishan Show City and the construction of the South Line Cableway at Shaohua Mountain, which could contribute an additional 1.0 to 1.4 billion yuan to profits [6][7]. 4. Market Trends - The report highlights a favorable environment for service consumption, with policies aimed at boosting tourism and consumer spending, which are expected to benefit the company significantly [6][7]. 5. Profit Forecast - The company forecasts a net profit of 4.1 billion yuan in 2025, with a recovery expected in 2026 to 6.2 billion yuan, corresponding to a P/E ratio of 18 times [7][8].

Summary of the Conference Call on Shaanxi Tourism Company Overview - Shaanxi Tourism is the only publicly listed platform of Shaanxi Tourism Group, with core assets consisting of high-barrier, high-margin tourism performances (59% of revenue) and cable cars (38% of revenue) [2][4] - The company is positioned as a C-end consumer enterprise expected to be listed by the end of 2025, representing a significant player in the tourism sector [4] Key Financial Metrics - For 2024, the company anticipates total revenue of 12.5 billion yuan, with tourism performances contributing 59% and cable cars 38% [5] - The gross margin for the tourism performance segment is projected to be 71%, with the core project "Chang Hen Ge" expected to generate 680 million yuan in revenue and a net profit margin close to 70% [2][6] Core Projects and Expansion Plans - The main project "Chang Hen Ge" is expected to attract approximately 2.5 million visitors in 2024, with an average ticket price of 273 yuan [6] - The "Taishan Xiucheng Phase II" project is set to begin construction in 2026, with projected revenues of 200 million yuan in the first year and 265 million yuan in the third year, contributing approximately 78 million yuan in net profit [7] Cable Car Operations - The core cable car project, Huashan West Peak Cableway, is expected to serve around 3.71 million visitors in 2024, with a utilization rate of 104%, significantly higher than competitors [8] - The company plans to acquire a 19% minority stake in the cableway, which is expected to enhance net profit by approximately 40 million yuan [8] New Cable Car Project - The new Shaohua Mountain South Line Cableway is projected to generate around 30 million yuan in revenue in its first year, with a profit margin of approximately 30% by the fifth year [9] Growth and Profitability Outlook - For 2026, the company anticipates a 10% growth in existing business, with total profits expected to reach around 500 million yuan, supported by the acquisition of minority stakes [10][11] - The current price-to-earnings (PE) ratio is approximately 20 times, which is considered low, with a target valuation of 30-35 times, indicating a potential market cap increase of 50%-80% [11][12] Group Structure and Potential Synergies - Shaanxi Tourism Group, under the Shaanxi Provincial State-owned Assets Supervision and Administration Commission, has assets totaling approximately 54 billion yuan, with various tourism-related segments [11] - The group has multiple projects that could synergistically enhance the profitability of the listed company, particularly in underperforming or marginally profitable cable car and performance projects [11] Investment Thesis - The company is positioned as a leading player in the service consumption sector, with strong core asset profitability and growth potential [12] - The target market valuation is set between 15 billion to 18 billion yuan, reflecting a significant upside based on current market conditions [12]

Investment Rating - The report assigns an "Accumulate" rating to the company, marking its first coverage [6][53]. Core Insights - The company is a leading player in the cultural tourism sector in Shaanxi, with strong profitability driven by its core businesses, including the performance "Chang Hen Ge" and the Xifeng Cableway, both of which have been operational for over ten years [6][53]. - The company has seen significant revenue growth since 2023, largely due to the successful introduction of the winter version of "Chang Hen Ge," which mitigated seasonal fluctuations [6][18]. - The company is expected to benefit from recent consumer spending policies favoring service consumption, with projected earnings per share of 5.68 yuan and 6.72 yuan for 2025 and 2026, respectively [6][53]. Summary by Sections 1. Business Overview - The company is a subsidiary of Shaanxi Tourism Group, leveraging the province's rich historical and cultural resources to build a business model centered around tourism performances, cable cars, and dining [6][13]. - The flagship performance "Chang Hen Ge" has been a staple since its launch in 2007, showcasing a historical love story and has established a robust operational model [6][40]. 2. Market Recovery - The domestic travel market has rapidly recovered post-pandemic, with a notable increase in travel numbers and spending, indicating a shift towards experiential consumption in tourism [32][34]. - In 2024, Shaanxi Province is expected to receive 817 million domestic tourists, generating a total tourism revenue of approximately 766.8 billion yuan, reflecting a year-on-year growth of 14.0% and 16.5%, respectively [34]. 3. Business Analysis 3.1 Tourism Performances - The company has developed a performance matrix centered around "Chang Hen Ge," which is expected to generate nearly 700 million yuan in revenue in 2024 [37]. - The introduction of the winter version of "Chang Hen Ge" has been well-received, contributing to significant revenue increases [18][40]. 3.2 Cable Car Business - The Xifeng Cableway is a key revenue source, with stable profitability and expected revenue of 390 million yuan in 2024 [44]. - The cableway's location at Huashan, a major tourist destination, enhances its appeal and usage rates [47]. 3.3 Shareholder Background - The controlling shareholder, Shaanxi Tourism Group, has a strong resource base and a stable shareholding structure, which supports the company's growth and operational strategies [16][51]. 4. Investment Strategy - The company is positioned as a leader in the cultural tourism sector, with a strong operational model and profitability metrics that surpass comparable companies [6][53]. - The anticipated earnings growth and favorable market conditions suggest a positive outlook for the company's stock performance [53].

Core Viewpoint - The extended Spring Festival holiday has stimulated travel demand, with total domestic travel expenditure reaching 803.48 billion yuan, averaging 89.3 billion yuan per day, a year-on-year increase of 5.5%, recovering to 122% of the level in the same period of 2019 [1][2]. Group 1: Travel Demand and Expenditure - During the 2026 Spring Festival holiday, there were 596 million domestic travelers, averaging 66 million per day, a year-on-year increase of 5.7%, recovering to 112% of the level in 2019 [2]. - The total domestic travel expenditure was 803.48 billion yuan, averaging 89.3 billion yuan per day, a year-on-year increase of 5.5%, recovering to 122% of the level in 2019 [2]. - The per capita consumption was 1,348 yuan, averaging 150 yuan per day, a year-on-year decrease of 11.3%, recovering to 84.7% of the level in 2019 [2]. Group 2: Scenic Spots Performance - Scenic spots experienced high visitor flow during the holiday, with many reaching maximum capacity for several days [3]. - Notable scenic spots such as Emei Mountain and the Three Gorges Dam showed strong performance, with significant year-on-year growth [3]. - The number of visitors to the projects under SanTe Cableway increased by 18.2% in the first eight days, while destinations under Xiangyuan Cultural Tourism saw a 31.3% increase [3]. Group 3: Duty-Free Sales - Duty-free sales in Hainan experienced double-digit growth, with Sanya outperforming Haikou [4]. - During the Spring Festival holiday, the duty-free shopping amount reached 2.72 billion yuan, averaging 303 million yuan per day, a year-on-year increase of 16.5% [4]. - Sanya's duty-free sales amounted to 1.96 billion yuan, averaging 218 million yuan per day, a year-on-year increase of 21% [4]. Group 4: Performance of Entertainment - The number of performances during the Spring Festival holiday remained stable or slightly increased [5]. - Songcheng Performance's "Romance of the Three Kingdoms" had 580 shows, increasing by 30 shows compared to the previous year [5]. - "The Long Song of Love" had a total of 32 shows during the holiday, an increase of 4 shows compared to the previous year [5]. Group 5: Outbound and Inbound Travel - The extended holiday combined with "leave-sharing" travel has stimulated outbound travel demand [6]. - During the Spring Festival holiday, the number of people entering and exiting the country reached 17.796 million, averaging 1.977 million per day, a year-on-year increase of 10.1% [6]. - The number of mainland residents traveling to Hong Kong and Macau increased by 11.7% and 7.2%, respectively [6]. Group 6: Inbound Travel - The visa-free policy has positively impacted inbound travel [7]. - During the Spring Festival holiday, the number of foreign visitors entering and exiting the country reached 1.313 million, averaging a daily increase of 21.8% [7]. - Among the inbound foreign visitors, 460,000 entered under the visa-free policy, with a daily increase of 28.5% [7].

Group 1 - Xi'an showcased a unique cultural and innovative celebration for the Year of the Horse in 2026, blending traditional customs with modern technology [1][2] - The city featured a vibrant atmosphere with traditional storytelling, riddles, and interactive activities, enhancing the festive experience for visitors [2] - The integration of technology was highlighted by the collaboration between Qujiang Cultural Tourism and Yushu Technology, presenting a robot dance troupe that performed during the celebrations [3] Group 2 - The city wall of Xi'an hosted a National Trend Market and a New Year lantern exhibition, featuring over 50 cultural relics presented in lantern form, creating a historical ambiance [1] - The Tang Paradise showcased a dynamic display of 39 groups of lanterns, transforming over 300 Tang poems into a visual spectacle, enhancing the cultural experience [2] - Traditional performances, such as the large-scale historical dance drama "Chang Hen Ge," were a key attraction during the holiday, with multiple shows scheduled to meet demand [2]

Investment Rating - The report maintains a "Buy" rating for the company [2][8] Core Insights - The company is positioned as a leading player in the cultural tourism sector, driven by its dual business model of "performing arts + cable cars," with core assets including the live performance "Long Hate Song" and the Huashan cable car, creating a business loop and brand barrier [2][19] - The company is expected to achieve a revenue of 1.263 billion yuan in 2024, with a net profit of 511.73 million yuan, indicating stable growth in its main business [2][19] - The company benefits from supportive service consumption policies that promote the development of the cultural tourism industry [16][19] Financial Projections - Total revenue projections for the company are as follows: 1.088 billion yuan in 2023, 1.263 billion yuan in 2024, 1.052 billion yuan in 2025, 1.174 billion yuan in 2026, and 1.308 billion yuan in 2027 [1] - Net profit projections are: 427.45 million yuan in 2023, 511.73 million yuan in 2024, 394.30 million yuan in 2025, 513.89 million yuan in 2026, and 588.88 million yuan in 2027 [1] - The earnings per share (EPS) are projected to be 5.53 yuan in 2023, 6.62 yuan in 2024, 5.10 yuan in 2025, 6.65 yuan in 2026, and 7.61 yuan in 2027 [1] Business Segments - The performing arts segment is expected to generate 7.39 billion yuan in revenue in 2024, with the "Long Hate Song" contributing 6.81 billion yuan, reflecting a 26% year-on-year increase [25][36] - The cable car segment is projected to generate 4.73 billion yuan in revenue in 2024, with the Huashan cable car expected to carry 371 million passengers, reflecting a 10% increase [27][55] - The tourism catering segment is anticipated to generate 0.42 billion yuan in revenue in 2024, although it is expected to decline by 11% year-on-year [34][19] Group Support - The controlling shareholder, Shaanxi Tourism Group, is a significant player in the cultural tourism sector, with assets exceeding 54 billion yuan as of September 2025, providing comprehensive support to the company [57][60] - The group operates multiple 5A-level scenic spots and cultural performances, enhancing the company's operational capabilities and resource integration [60]

Summary of Shaanxi Tourism Group Conference Call Company Overview - Shaanxi Tourism Group is the only publicly listed cultural tourism platform under the Shaanxi provincial state-owned assets, holding key assets such as "The Song of Everlasting Regret" and the Huashan West Peak Cableway [2][5] Core Financials and Performance - In 2024, the company expects tourism performance revenue to account for 59% and cableway revenue to account for 38% of total income [2] - Revenue from "The Song of Everlasting Regret" is projected to be approximately 680 million yuan, with a visitor count of 2.49 million, an occupancy rate of 88%, an average ticket price of 273 yuan, a gross margin exceeding 80%, and a net profit of about 467 million yuan [2][5] - The Huashan West Peak Cableway is expected to generate 390 million yuan in revenue, with a visitor count of 3.56 million, a ride rate of 104%, an average ticket price of 105 yuan, and a net profit of 190 million yuan (51% ownership by the listed company) [2][6] - The company anticipates that existing businesses will contribute approximately 600 million yuan in profit [2][7] Future Growth and Acquisitions - Plans to acquire a 19% stake in Taihua Cableway and a 49% stake in Yaoguang Pavilion, expected to add 40 million and 10 million yuan in profit, respectively [2][7] - Ongoing construction of the second phase of Taishan Xiucheng, expected to contribute over 30 million yuan in profit in the year of completion and 70-80 million yuan in five years [2][7] - New projects include the construction of the South Line Cableway at Shaohua Mountain and supporting facilities for the Huashan West Peak Cableway [2][7] Asset and Revenue Projections - By September 2025, the total asset scale of Shaanxi Tourism Group is expected to exceed 54 billion yuan, with projected group revenue of over 9 billion yuan and a gross profit of around 2 billion yuan [2][8] - The listed company is expected to achieve a gross profit of about 900 million yuan, with potential for further integration of mature assets to enhance overall profitability [2][8] Profit Forecasts - Due to a high base in 2024 and weather impacts in Q3 2025, the company forecasts a profit of approximately 400 million yuan for 2025 [3][9] - For 2026, with a recovery in visitor numbers and the impact of equity acquisitions, profits could reach 500 million yuan, corresponding to a current P/E ratio of less than 25 times [3][10] - Given the quality of assets and growth potential, a valuation expectation of over 30 times is suggested, with attention to holiday service consumption policies and new project developments [3][10] Unique Aspects of the IPO - Shaanxi Tourism is noted as the largest scenic area IPO in A-share history, with strong government support for service consumption, making it a compelling investment opportunity [4]