Group 1 - The core viewpoint of the report is that Shaanxi Tourism, with its key assets of the live performance "Chang Hen Ge" and the Huashan cableway, creates a business loop and brand barrier, making it a rare cultural tourism integration target in the A-share market [1] - The company is expected to achieve a revenue of 1.263 billion yuan and a net profit attributable to the parent company of 512 million yuan in 2024, indicating stable growth in its main business [1] - The service consumption policies are frequently introduced to support the development of the cultural tourism industry, benefiting Shaanxi Tourism through its operations at Huaqing Palace and Huashan [1] Group 2 - The company is backed by Shaanxi provincial state-owned assets, allowing it to enjoy policy dividends [1] - The profit expectations for the company are maintained, with projected net profits attributable to the parent company of 390 million yuan, 510 million yuan, and 590 million yuan for 2025-2027, corresponding to price-to-earnings ratios of 30, 23, and 20 times respectively [1] - The report maintains a "buy" rating for the company [1]

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]

Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [1]. Core Insights - Shaanxi Tourism is positioned as a leading cultural tourism company driven by its dual focus on performance arts and cableway operations, leveraging rich historical and cultural resources in Shaanxi Province [8][14]. - The company is expected to achieve a revenue of CNY 1.263 billion in 2024, representing a year-on-year growth of 16.03%, with a net profit of CNY 511.73 million, up 19.72% [8][14]. - The report highlights the ongoing recovery and growth in the tourism industry, supported by favorable government policies and increasing consumer spending on travel [44][51]. Summary by Sections Company Overview - Shaanxi Tourism operates major businesses in tourism performance, cableway services, and tourism project investment and management, with its flagship performance being the large-scale historical dance drama "The Song of Everlasting Regret" [8][14]. - The company has a strong historical foundation and has been publicly listed since 2026, with significant assets including the Huashan cableway and the performance at Huaqing Palace [8][14]. Industry Outlook - The tourism market is experiencing sustained growth, with domestic travel numbers and spending recovering to pre-pandemic levels, indicating a robust demand for tourism services [44][48]. - Government policies are increasingly supportive of the cultural and tourism sectors, aiming to enhance the integration of culture and tourism [51][52]. Financial Analysis - The company forecasts a total revenue of CNY 1.071 billion for 2023, with a projected net profit of CNY 418.27 million, reflecting a significant year-on-year increase of 662.06% [1][8]. - The earnings per share (EPS) is expected to be CNY 5.41 in 2023, with a price-to-earnings (P/E) ratio of 29.45 [1][8]. Profit Forecast and Investment Recommendations - The report predicts net profits for 2025, 2026, and 2027 to be CNY 394.30 million, CNY 513.89 million, and CNY 588.88 million respectively, with corresponding P/E ratios of 31, 24, and 21 [1][8]. - The company is expected to benefit from new projects and shareholder support, justifying the "Buy" rating [8][14].