Dalian Shengya (600593) 2019 Interim Report Review: The main business continues to expand slightly in different locations
Investment Highlights Event: 2019H1 Revenue1.
31 ppm / -6.
74%, net profit attributable to mother is 7.59 million yuan / -8.
09%, deducting non-attributed net profit of 8.02 million yuan / + 50.
77%, ROE is 1.
38pct, EPS is 0.
06 yuan / -7.
The price war in Dalian and Harbin continued to escalate, and the company’s revenue slightly increased.
Dalian and Harbin Sub-areas are the company’s main sources of revenue. The total revenue of Dalian Headquarters and Harbin Subsidiaries in 2019H1 will account for more than 90% of the company’s total revenue.
Affected by the fierce competition in the Dalian and Harbin markets, the escalating price war, and the increasing demand from tourists for product and service content, the company’s 2019H1 revenue and net profit attributable to mothers were slightly.
In general, the company actively establishes four seasons normalized marketing, expands in-depth media cooperation, promotes service upgrades and brand building, takes targeted measures against industry competition, and expands local and foreign market.
The short-term income of management output projects is reduced, the long-term potential is huge, and the profitability is bright.
Since 2016, the company has started to promote the business model of light asset management. The first phase of the Wuhu project has been in trial operation in September 16th, and the second phase of the show opened in the Spring Festival in 18, which has transformed the company into more than 50 million yuan in revenue; Opened in May of this year, it gradually contributed more than 24 million yuan to the company’s revenue.
Both Wuhu and Huai’an management output projects have now expired, confirming the company’s comprehensive strength in the aquarium industry.
2019H1 other business income 606.
910,000 yuan / -68.
5%, although affected by the recognition of animal breeding service revenue in the same period last year, and other business revenues decreased, the gross profit margin was still as high as 51.
39%, profitability is very considerable, or become an important breakthrough for the company to optimize the operating structure.
The gross profit margin increased significantly, the cost control effect appeared, and the expansion in different places increased the financial expense ratio.
The gross profit margin for 2019H1 is 53.
45% / + 2.
29pct, due to operating efficiency improvement costs; net profit margin 3.
As for the expense ratio, the overall expenses during the period decreased slightly, and expenses during the 2019H1 period were 5,648 million / -7.
02%, period rate 43.
13 pct, of which the sales rate is 7.
47 pct and management fee rate 26.
56pct decreased, due to the decrease in advertising costs, consulting fees and other expenses, and the financial rate was 9.
11% / + 1.
90% of pct comes from increased bank loans.
Off-site projects continue to make efforts.
2019H1 company under construction6.0.7 million yuan, an increase of 1 over the beginning of the year.
2.3 billion, mainly due to the addition of the second phase of the Harbin Polar Museum project, the Zhenjiang Great Beluga Project, the Yingkou Bayuquan Great Beluga Project, and 杭州桑拿网 the Great Beluga Qiandaohu Project. Among them, the Zhenjiang project has progressed more than halfway, and the Yingkou project has been completed by 1/3. Harbin andThe Qiandao Lake project is in the initial stage; in the next few years, the company plans an investment of about 2.5 billion US dollars in the country. If the financing is smooth and the project operation meets expectations, the company’s performance will usher in a qualitative leap.
Profit forecast and investment rating: The company actively expanded its marketing channels, optimized its operating structure, and responded to fierce competition. The performance in the first half of 2019 fluctuated slightly from the same period last year.
The management output business continued its efforts, and gross profit margin remained high.
In the second phase of the Harbin Polar Museum, the Yingkou and Qiandao Lake projects frequently moved, and the “Beluga Plan” continued to advance, actively building the first domestic marine cultural original IP full industrial chain.
EPS are expected to be 0 in 19-21.
64 yuan, corresponding to the daily PE on August 26 is 71/65/61 times, maintaining the “prudent increase” rating.
Risk reminder: the progress of the new project is less than expected, the company’s financing channels are blocked, and extreme weather affects passenger flow, etc.