Sante(SZ:002159)2026-02-13 02:30Company and Industry Summary Company Overview - The company discussed is 三特索道 (SanTe Cableway), which is positioned in the tourism and leisure industry, focusing on cableway operations and related projects. The company has been significantly impacted by the debt crisis of its former controlling shareholder, 当代集团 (Contemporary Group), leading to a change in control to the Wuhan East Lake New Technology Development Zone Management Committee [1]. Key Points and Arguments - Debt Crisis Impact: The company has faced challenges due to the debt crisis of its former controlling shareholder, which is expected to be resolved by 2026, allowing for potential growth [1]. - Shareholding Structure: As of 2023, the new controlling entity and its concerted parties hold a total of 23.77% of the shares, while the Contemporary Group holds 22.97%. The buy-in price is noted at 16.28 CNY per share [1]. - Financial Recovery: The company has been actively disposing of and revitalizing loss-making projects since the pandemic, resulting in a decrease in the debt-to-asset ratio from 61% in 2019 to 20% currently. Net profit is projected to grow from 0.11 million CNY in 2019 to 1.42 million CNY in 2024 [2]. - Project Performance: Currently, the company operates seven profitable projects across nine provinces, generating a cumulative profit of 2.75 million CNY. Key contributors include projects at 梵净山 (Fanjing Mountain), 华山 (Mount Hua), 猴岛 (Monkey Island), and 珠海 (Zhuhai) [2]. - Loss-Making Projects: There are three main loss-making projects with a total loss of 5.249 million CNY, which is expected to reduce to approximately 3 million CNY by 2025 [2]. - Future Growth Potential: New and renovated projects are anticipated to significantly enhance performance, with the 珠海 project expected to increase profits by over 10 times post-renovation. The 千岛湖牧心谷 (Thousand Island Lake Muxin Valley) project is under construction and is expected to contribute over 40 million CNY in performance by the first half of 2027 [2]. - Valuation and Growth Outlook: The company is currently valued at 20 times earnings for 2025. With the resolution of equity issues and the full takeover by the State-owned Assets Supervision and Administration Commission (SASAC), the company is expected to see significant growth, with projected earnings of 1.8 million CNY in 2026 and 2.4 million CNY in 2027. There is a positive outlook for a valuation increase to 25-30 times by 2027, indicating potential for a doubling of value [2]. Additional Important Insights - The company is in a recovery phase, with a focus on improving its financial health and operational efficiency through strategic project management and revitalization efforts [2]. - The anticipated changes in shareholding and management structure are expected to provide a more stable foundation for future growth and investment opportunities [1][2].