Investment Rating - The report assigns a "Buy" investment rating for Jiuhua Tourism (603199.SH) [2][7] Core Views - The company is expected to benefit from the ongoing recovery in tourism and cultural consumption in China, with a strategic focus on expanding its business through various initiatives [6][7] - The company plans to raise up to 500 million yuan through a private placement to fund projects aimed at enhancing its tourism offerings, including the construction of a new cable car and hotel upgrades [5][6] Summary by Sections Investment Highlights - Jiuhua Tourism aims to raise up to 500 million yuan for projects including the construction of the Lion Peak cable car, hotel renovations, and transportation upgrades, which are expected to enhance the visitor experience and increase revenue [5] - In the first half of 2025, the company reported a 12% increase in visitor numbers and a 15% increase in revenue, reaching 5.65 million visitors and 7.65 billion yuan in revenue [6] Financial Forecast - The company is projected to achieve earnings per share (EPS) of 2.01 yuan, 2.27 yuan, and 2.51 yuan for the years 2025, 2026, and 2027 respectively, with corresponding price-to-earnings (P/E) ratios of 18, 16, and 14 [7][9] - Revenue is expected to grow from 76.4 billion yuan in 2024 to 102.8 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 8.5% [9][10] Business Strategy - The company is leveraging its resources from the Jiuhua Mountain area to create a comprehensive tourism ecosystem, including health food and local cuisine brands, aiming to establish a tourism complex in the Chizhou region [6][7]