丽江股份20250318

Summary of Lijiang Co., Ltd. Conference Call Industry and Company Overview - The conference call focuses on Lijiang Co., Ltd., a company operating in the tourism sector, particularly in scenic areas in Yunnan, China, with a strong emphasis on its core resource, Yulong Snow Mountain [3][7]. Key Points and Arguments - Post-Pandemic Financial Performance: Lijiang Co. reported its best-ever performance in Q1 2023, indicating a strong recovery in market demand and the ability to attract visitors to its scenic spots [3][6]. - Supply-Side Improvements: The company is enhancing its infrastructure and launching new projects, such as the renovation of the Yak Cow Slope cableway and the development of mid-to-high-end hotels and performance businesses in Shangri-La and Lugu Lake areas, which are expected to drive future growth [3][4]. - High Profitability: Lijiang Co. boasts a net profit margin of 30%, leading among listed companies in the scenic area sector, with a valuation consistently between 20-25 times earnings. The company also has a high dividend payout ratio, planning to distribute 90% of its profits in 2024, making it an attractive investment option [3][5]. - Core Tourism Resource: Yulong Snow Mountain is identified as the company's primary tourism asset, with the company controlling three cableways, particularly the Yulong Glacier Park cableway, which has an annual visitor capacity of 3-3.2 million [3][8]. - Diverse Business Operations: In addition to cableway operations, Lijiang Co. runs the "Impression Lijiang" performance series and operates mid-to-high-end hotel brands like Indigo and InterContinental, which contribute to overall performance and growth potential [3][9]. - Future Growth Potential in Hotel Sector: The hotel business is seen as a crucial component for future growth. Despite recent revenue declines due to consumption fluctuations, the mid-to-high-end hotel market still holds potential. Achieving breakeven and consistent profitability in this segment will positively impact overall performance [3][10]. - Long-Term Outlook: The company is optimistic about its future, with limited downside risk to its stock price and reasonable valuation. Ongoing supply-side improvements and new tourism projects are expected to enhance competitiveness and attract more visitors [3][6]. Other Important Insights - Visitor Capacity and Demand: The Yulong Glacier Park cableway's high demand and exclusivity contribute to its profitability, with a daily visitor cap of 11,000, ensuring consistent high load factors and fixed costs [3][8]. - Strategic Expansion: The company is strategically expanding its operations in the northwestern Yunnan region, focusing on new performance and cableway renovation projects, which could provide additional growth opportunities in the long term [3][10].