Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company's main business, cableway operations, has shown significant improvement in operational efficiency, and it is actively expanding into new business areas to seek additional growth [7] - The company is expected to achieve revenue of 7.31 billion, 8.04 billion, and 8.80 billion yuan for the years 2025 to 2027, representing year-on-year growth of 5.5%, 10.0%, and 9.5% respectively [7] - The forecasted net profit for the same period is 1.80 billion, 2.10 billion, and 2.44 billion yuan, with year-on-year growth rates of 26.5%, 16.8%, and 16.1% respectively [7] Financial Performance Summary - For 1H2025, the company reported revenue of 292 million yuan, a year-on-year decrease of 6.16%, and a net profit of 68 million yuan, down 11.49% year-on-year [7] - The gross margin for 1H2025 was 59.48%, an increase of 0.24 percentage points year-on-year, while the net profit margin was 23.11%, a decrease of 1.39 percentage points year-on-year [7] - The company’s revenue from cableway operations was 229 million yuan, accounting for 78.21% of total revenue, with a gross margin of 71.28%, up 0.86 percentage points year-on-year [7] Earnings Forecast - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 1.01 yuan, 1.18 yuan, and 1.37 yuan respectively [6] - The price-to-earnings (PE) ratios for the years 2025, 2026, and 2027 are expected to be 15.5, 13.3, and 11.4 respectively [6] - The return on equity (ROE) is forecasted to be 12.1%, 12.8%, and 13.5% for the years 2025, 2026, and 2027 respectively [6]

Core Viewpoint - The financial report of Emei Mountain Tourism Co., Ltd. for the first half of 2025 shows a decline in revenue and net profit compared to the same period in 2024, indicating potential challenges in the company's operational performance [2][5]. Financial Statements Assets - Total assets increased to CNY 3,373,927,525.28 from CNY 3,265,582,995.92, reflecting a growth of approximately 3.3% [3]. - Current assets rose to CNY 1,766,304,481.30 from CNY 1,612,019,021.42, an increase of about 9.6% [3]. - Non-current assets decreased to CNY 1,607,623,043.98 from CNY 1,653,563,974.50, a decline of approximately 2.8% [3]. Liabilities - Total liabilities increased to CNY 963,570,814.48 from CNY 834,572,877.41, representing a rise of about 15.4% [3]. - Current liabilities rose to CNY 415,449,721.12 from CNY 283,605,839.81, an increase of approximately 46.5% [3]. - Non-current liabilities slightly decreased to CNY 548,121,093.36 from CNY 550,967,037.60, a decline of about 0.5% [3]. Equity - Total equity decreased to CNY 2,410,356,710.80 from CNY 2,431,010,118.51, a decline of approximately 0.9% [3]. - The company's retained earnings showed a slight decrease from CNY 1,396,927,356.82 to CNY 1,386,485,902.29, a drop of about 0.9% [3]. Income Statement - Total operating revenue for the first half of 2025 was CNY 457,086,558.20, down from CNY 508,242,953.53 in the same period of 2024, a decrease of approximately 10% [5]. - Total operating costs decreased to CNY 324,393,956.82 from CNY 359,721,336.25, a reduction of about 9.8% [5]. - Net profit for the first half of 2025 was CNY -10,211,953.18, compared to CNY -16,456,790.16 in the first half of 2024, indicating an improvement in losses [6]. Cash Flow Statement - Net cash flow from operating activities was CNY 155,893,628.71, compared to CNY 151,393,412.56 in the previous year, showing a slight increase [8]. - Net cash flow from investing activities was CNY -8,573,519.49, an improvement from CNY -42,978,603.86 in the same period last year [8]. - Net cash flow from financing activities was CNY -9,289,724.81, compared to CNY -116,080,177.79 in the previous year, indicating a significant reduction in cash outflows [8].