Core Viewpoint - The report from Dongwu Securities highlights that Shaanxi Tourism's main business includes tourism performances, cable cars, dining, and project investment and management, with a strong focus on cultural tourism and government support [1] Financial Performance - In 2024, the company is projected to achieve an operating revenue of 1.263 billion yuan, representing a year-on-year increase of 16.03% [1] - The net profit attributable to shareholders is expected to reach 512 million yuan, reflecting a year-on-year growth of 19.72% [1] Market Trends - The market remains optimistic, with a notable upgrade in consumer spending quality, as evidenced by 142 million domestic tourist trips during the 2026 New Year holiday, a 5.2% increase compared to the same period in 2024 [1] - Central government policies are increasingly supportive of the deep integration of culture and tourism [1] Company Strengths - Shaanxi Tourism operates key assets such as the large-scale historical performance "The Eternal Regret" and the cable car at Mount Huashan, which are recognized as exemplary in Chinese cultural tourism [1] - The company benefits from the backing of Shaanxi provincial state-owned assets, which provides access to policy dividends [1] Investment Recommendation - Given the company's core asset stability and growth potential from new projects and shareholder empowerment, the report initiates coverage with a "Buy" rating [1]

Group 1 - The company, a leading player in the cultural tourism sector, focuses on tourism performances, cable cars, dining, and project investment and management, with significant assets including the acclaimed performance "The Song of Everlasting Regret" and the cable car at Mount Huashan [1][2] - In 2024, the company achieved a revenue of 1.263 billion yuan, representing a year-on-year increase of 16.03%, and a net profit attributable to shareholders of 512 million yuan, up 19.72% year-on-year [1] - The tourism industry continues to show strong growth, with domestic travel increasing by 18.0% in terms of visitor numbers and 11.5% in total spending, alongside a 5.2% increase in travel during the 2026 New Year holiday compared to the same period in 2024 [1][2] Group 2 - The company leverages rich natural and cultural resources in Shaanxi, with a dual focus on performance and cable car operations, generating 680 million yuan from "The Song of Everlasting Regret" with an 88% attendance rate and 390 million yuan from the Xifeng Taihua cable car with a passenger rate of 104% [2] - The company raised 1.555 billion yuan through its IPO, funding projects including acquisitions of cable car assets and the development of new tourism facilities [2][3] - The controlling shareholder, Shaanxi Tourism Group, possesses abundant cultural tourism resources, which are expected to enhance the company's growth potential [3]