Core Insights - The opening of Qianhai Ice and Snow World marks the first large indoor ski resort in the Guangdong-Hong Kong-Macau Greater Bay Area, aligning with the national strategy for the development of ice and snow sports [1] - The project aims to promote the popularization of ice and snow sports and the integration of regional cultural tourism industries [1] Company Overview - Qianhai Ice and Snow World is invested in and operated by Huafa Group, covering a total construction area of approximately 100,000 square meters [1] - The facility features five professional ski slopes, with a maximum vertical drop of 83 meters and the longest single slope measuring 463 meters [1] - The project has been certified by Guinness World Records as the "largest indoor ski center" and has received certification from the International Ski Federation (FIS) for competition standards [1] Industry Impact - The project has been designated as a training base for skiing in Guangdong Province and for the Hong Kong skiing team, positioning it as a key platform for training and popularizing ice and snow sports in the Greater Bay Area [1] - The facility employs sixth-generation distributed snow-making technology, maintaining a snow moisture content of around 8%, closely resembling natural snow conditions [1] - The venue is equipped with dual cable cars and multiple conveyor belt systems, with a capacity of 3,200 visitors per hour, enhancing the visitor experience [1] Operational Strategy - The project has launched a cross-border bus service connecting Hong Kong and Macau, collaborating with over 30 hotels and 60 travel agencies to offer combined "snow tickets + accommodation" products [2] - A high-end membership space named "Super Snow Club" has been established to provide customized services [2] - The facility will host various events, including snow performances and themed markets, in conjunction with the "National Day Bay Area Ice and Snow Carnival" and Shenzhen's "Autumn Heartbeat" cultural tourism promotion activities [2] Future Plans - Huafa Group aims to leverage the unique hardware advantages of Qianhai Ice and Snow World to enhance investment in the popularization of ice and snow sports, professional training, and event organization [2] - The goal is to break seasonal and regional limitations, integrating ice and snow sports into everyday life and making it accessible to a wider audience in the Greater Bay Area [2]

Core Viewpoint - The Shenzhen Qianhai Ice and Snow World project, developed and wholly owned by Huafa Group, is set to officially open at the end of September, with expectations of significant revenue contributions post-maturity [1] Company Summary - The ticket prices for the Qianhai Ice and Snow World are set higher than competitors, indicating a premium positioning strategy [1] - Once the project matures, it is anticipated to contribute annual revenue of 650 million yuan and a net profit of 130 million yuan [1] - The company benefits from a state-owned background, strong support from major shareholders, and maintains ample liquidity [1] - The upcoming issuance of targeted convertible bonds is expected to enhance the company's ability to seize potential market recovery opportunities [1] Industry Summary - The company is entering a period where high-margin land parcels will begin to be recognized in financial results, providing a stabilizing effect on performance [1] - Despite the current industry downturn, there may still be some impairment pressure on the company [1] - The overall outlook remains positive, with a "buy" rating maintained for the stock [1]

Investment Rating - The report maintains a "Buy" rating for the company [3][6]. Core Views - The upcoming opening of the Shenzhen Qianhai Ice and Snow World project is expected to enhance the company's performance and operational metrics [3][11]. - The company has a strong state-owned background, which provides substantial support from major shareholders, ensuring liquidity remains robust [3][11]. - The company is expected to leverage the potential market recovery to increase land acquisitions following the issuance of targeted convertible bonds [3][11]. - The company has seen a reduction in land acquisition activities recently, focusing on optimizing its land reserve structure [3][31]. Summary by Sections Project Overview - The Shenzhen Qianhai Ice and Snow World project, developed and wholly owned by the company, is set to open at the end of September, becoming the largest indoor ski resort globally with a total area of 437,000 square meters and a total construction area of 1,311,000 square meters [1][20]. - The project includes diverse facilities such as a 100,000 square meter ice and snow theme park, 100,000 square meters of commercial space, a 49,000 square meter hotel, and 300,000 square meters of sellable talent housing [1][20]. Revenue and Profit Projections - The project is expected to contribute an annual revenue of 650 million yuan and a net profit of 130 million yuan once it reaches maturity [2][25]. - The pricing strategy for the ski tickets is higher than competitors, with price differences ranging from 15% to 27% [2][24]. - The company anticipates receiving over 1.25 million visitors annually, with revenue projections based on a sensitivity analysis estimating a range of 490 million to 920 million yuan [2][26]. Land Acquisition and Reserves - The company plans to acquire land worth 9.4 billion yuan in 2024 and 3.6 billion yuan in the first half of 2025, focusing on core cities [3][31]. - The total land reserve is expected to be 16.29 million square meters by the end of 2024, with a significant portion located in the East China region [3][39]. - The issuance of targeted convertible bonds is anticipated to improve liquidity and facilitate further land acquisitions [3][31]. Financial Forecasts - The company forecasts revenues of 66.26 billion yuan, 68.44 billion yuan, and 69.96 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 255 million yuan, 497 million yuan, and 1.005 billion yuan for the same years [3][5].

Group 1 - The Shenzhen Qianhai Ice and Snow World project is in the final construction phase, with cooling and snow-making processes underway, and is expected to open in the fourth quarter of this year [2] - The company reported a sales revenue of 50.22 billion yuan in the first half of the year, with an average sales price of 26,459 yuan per square meter, ranking 11th in the industry according to Leike R&C [2]

Group 1: Economic Development and Investment - Shenzhen has completed an investment of 178.65 billion yuan in major projects in the first half of the year, achieving an investment progress rate of 58.1% [1][2] - The city has planned a total of 798 major projects with a total investment of approximately 3.2 trillion yuan by 2025, focusing on modern industries, public welfare, and infrastructure [2] - Major projects in modern industries include the Shenzhen International Exchange Center and various headquarters for companies like Xiaomi and JD.com, which are expected to enhance the city's industrial capabilities [1][2] Group 2: Social Welfare and Public Services - Shenzhen plans to invest 95.37 billion yuan in 292 major projects aimed at improving public welfare by 2025, focusing on education, healthcare, and cultural tourism [3] - The city has increased its educational capacity significantly, adding 100,000 public high school seats and addressing the tight supply of high school placements [3] - In healthcare, Shenzhen has reached a total of 75,000 hospital beds and established 82 elderly care institutions, with community services benefiting over 200,000 elderly residents [4]

Group 1 - The core building of Zhuhai Huafa Industrial Co., Ltd.'s Shenzhen Qianhai Ice and Snow World project, the Ice and Snow Center, is nearing completion with 95% overall progress, including 86% of curtain wall installation and 90% of electromechanical engineering [1][2] - The Ice and Snow Center will feature a professional ski slope of 1569 meters in length and a vertical drop of 83 meters, expected to open in the fourth quarter of this year, marking Shenzhen's "Ice and Snow Year" [1][2] - The ice and snow economy in China is projected to exceed 1 trillion yuan by 2025, indicating a significant growth opportunity for the industry [1] Group 2 - The Shenzhen Qianhai Ice and Snow World will operate year-round as a comprehensive ski entertainment complex, becoming the largest indoor snow world globally, capable of hosting international events [2] - The project is strategically located in the Guangdong-Hong Kong-Macao Greater Bay Area, enhancing its market potential and accessibility [1][2] - The project aims to meet the growing demand for ice and snow activities in southern China while providing a unique experience for northern visitors [2]