Investment Rating - The report maintains an "Accumulate" rating for the company [3] Core Views - The overall performance in the first half of 2025 was stable and met expectations, with a slight decline in cable car passenger numbers due to weather conditions, but a record high revenue in Q2 2025 demonstrated robust operational performance [5] - The company achieved revenue of 378 million yuan in H1 2025, a year-on-year decrease of 1.85%, and a net profit attributable to shareholders of 95 million yuan, a year-on-year decrease of 15.86%, which aligns with expectations [5] - The forecast for net profit attributable to shareholders for 2025, 2026, and 2027 has been adjusted to 232 million, 260 million, and 280 million yuan respectively, with corresponding P/E ratios of 21.1, 18.8, and 17.5 [5] Financial Summary - In Q2 2025, the company achieved a historical high revenue of 215 million yuan, with a year-on-year growth of 5.04%, and a net profit of 60 million yuan, reflecting a year-on-year increase of 6.26% [5] - The company’s cable car and performance business saw a decline in visitor numbers, with a total of 3.088 million visitors in H1 2025, down 4.6% year-on-year, while the hotel business exceeded expectations with revenue growth [5] - The revenue from the Lijiang He Fu Hotel was 61.64 million yuan, up 5.5% year-on-year, and the revenue from the Diqing Shangri-La Hotel was 14.56 million yuan, up 25.1% year-on-year [5] Revenue and Profit Forecast - The company’s revenue is projected to grow from 808 million yuan in 2024 to 932 million yuan in 2027, with growth rates of 1%, 1%, 8%, and 6% respectively [3][7] - The net profit attributable to shareholders is expected to increase from 211 million yuan in 2024 to 280 million yuan in 2027, with growth rates of -7%, 10%, 12%, and 8% respectively [3][7] - The earnings per share (EPS) is forecasted to rise from 0.38 yuan in 2024 to 0.51 yuan in 2027 [3][7]

Core Viewpoint - The overall performance in 25H1 is stable and meets expectations, with a slight decline in cable car passenger numbers due to weather conditions, but 25Q2 revenue reached a record high, demonstrating robust operational performance [1] Financial Performance - In 25H1, the company achieved revenue of 378 million yuan, a year-on-year decrease of 1.85%, and a net profit attributable to shareholders of 95 million yuan, a year-on-year decrease of 15.86%, which is in line with expectations [1] - For 25Q2, the company reported revenue of 215 million yuan, a year-on-year increase of 5.04%, marking a historical high for the second quarter, with a net profit of 60 million yuan, a year-on-year increase of 6.26% [1] Business Segments - The cable car business experienced a year-on-year decline in passenger numbers due to weather, with a total of 3.088 million visitors across three cable cars in 25H1, down 4.6% year-on-year; the "Impression Lijiang" show received 707,000 visitors, down 18.0% year-on-year [1] - Conversely, the hotel business showed positive growth, with Lijiang Hefu Hotel generating revenue of 61.64 million yuan, up 5.5% year-on-year, and Diqing Xiangbala Hotel generating 14.56 million yuan, up 25.1% year-on-year [2] Ticketing Optimization - In 25H1, the company optimized the ticket purchasing process for cable cars, which is expected to positively impact future visitor numbers. Changes include allowing ticket purchases up to 7 days in advance, limiting purchases to once per ID within 90 days, and supporting self-rescheduling [2]