Macro Research - The outlook for 2026 suggests a potential diminishing multiplier effect from durable goods subsidies, with price recovery largely dependent on effective fiscal input, particularly towards consumption and services [2][4] - In a neutral scenario, both CPI and PPI are expected to see a moderate upward shift [2][4] Retail and Service Research - The company Emei Mountain A is expected to benefit from the renovation of the Golden Summit cableway and the construction of Leshan Airport, enhancing the scenic area's capacity and visitor experience, which will drive traffic growth and profit recovery [2][6] - The renovation of the Golden Summit cableway will increase its capacity from approximately 1,200 people per hour to 3,200 people per hour, representing a 167% increase, which will alleviate peak waiting times and enhance visitor spending [8] - Leshan Airport is projected to facilitate tourist growth, with a designed annual throughput of 2.6 million passengers, expected to connect with existing highway networks to create a direct transport corridor to major scenic spots [8] Company Coverage - Emei Mountain A is rated as "Buy" with a target price of 20.65 CNY, compared to the current price of 14.46 CNY, reflecting a market capitalization of 761.9 million [7] - The company is expected to achieve net profits of 251 million CNY, 308 million CNY, and 346 million CNY for the years 2025-2027, with corresponding EPS of 0.48 CNY, 0.59 CNY, and 0.66 CNY [7] - The company has established a diversified business ecosystem through a full industry chain layout, including ticket sales, cableway operations, hotels, and various derivative businesses [7] Market Potential - Emei Mountain's visitor numbers were 4.67 million in 2024, significantly lower than other comparable sites, indicating substantial room for market growth through improved transportation and product upgrades [9] - The company has demonstrated strong unit visitor value conversion capabilities, with total tourism revenue of 1.013 billion CNY in 2024, higher than that of Jiuhua Mountain [9]

Investment Rating - The report gives a rating of "Outperform the Market" for Emei Mountain [4][14]. Core Views - Emei Mountain, with its unique natural scenery and cultural heritage, is expected to significantly enhance its visitor capacity and accessibility due to the renovation of the Jinding Cableway and the construction of Leshan Airport, leading to increased tourist traffic and improved profitability [10][11]. - The company is projected to achieve a net profit attributable to the parent company of 251 million yuan, 308 million yuan, and 346 million yuan for the years 2025 to 2027, respectively, with corresponding EPS of 0.48 yuan, 0.59 yuan, and 0.66 yuan [4][14]. Financial Summary - Total revenue is forecasted to be 1,045 million yuan in 2023, decreasing to 990 million yuan in 2025, and then increasing to 1,105 million yuan by 2027, reflecting a growth rate of 142.3% in 2023 followed by a decline in subsequent years [3][19]. - The net profit attributable to the parent company is expected to rise from 228 million yuan in 2023 to 346 million yuan in 2027, indicating a growth of 256.2% in 2023 [3][19]. - The company’s PE ratio is projected to decrease from 29.79 in 2023 to 19.63 in 2027, suggesting an improving valuation over time [3][19]. Business Development - The company has established a comprehensive business ecosystem comprising "tickets + cableway + hotels + diversified derivatives," leveraging its unique resources and 5A scenic area advantages to drive diversified development [4][15]. - The renovation of the Jinding Cableway is expected to increase its capacity from approximately 1,200 passengers per hour to 3,200 passengers per hour, enhancing visitor experience and operational efficiency [4][30]. - Leshan Airport is anticipated to facilitate tourist growth, with a designed annual throughput of 2.6 million passengers, significantly improving access to Emei Mountain [4][41]. Market Potential - Emei Mountain's visitor numbers in 2024 are projected to be 4.67 million, which is lower than other major Buddhist mountains, indicating substantial room for growth in both visitor numbers and revenue [4][51]. - The differentiated pricing strategy has shown effectiveness, with ticket prices varying by season, which has contributed to a stable increase in visitor numbers [4][50].

Group 1 - The company Emei Mountain A has confirmed that the renovation and upgrade project for the Jinding cableway is currently in progress [1]

Core Viewpoint - Emei Mountain A's visitor traffic has declined, putting pressure on revenue, but business optimization has led to improved profitability [1] Group 1: Financial Performance - In the first half of 2025, revenue from tea, smart tourism, and performance-related businesses decreased by 15% to 0.67 billion yuan, primarily due to changes in market conditions and consumer structure [1] - The company reported a net profit margin increase of 1 percentage point to 24.30% in the first half of 2025 [1] - Management expenses increased by 1 percentage point to 14.92% in the first half of 2025, while sales expense ratio remained flat year-on-year [1] Group 2: Business Strategy - The company has proactively suspended the loss-making performance project "Only Emei Mountain" to enhance profitability [1] - The Golden Summit cableway project is expected to reach operational status by the end of 2025, which will further increase the tourist capacity of the scenic area after upgrades [1] - The company is actively developing new projects in tea and travel agencies, aiming for future revenue growth [1] Group 3: Market Outlook - The company has made dynamic resource allocation adjustments to reduce costs and improve efficiency, leading to profitability improvements [1] - With traffic optimization and the implementation of the Golden Summit cableway renovation, the tourist capacity of the scenic area is expected to gradually expand [1] - The company continues to promote scenic area adjustments, resulting in improved profitability in the second quarter [1]