Three special ropeway (002159): multiple factors lead to increase and continue to dispose of low-quality assets

Performance review Maintaining a neutral 1H19 result is in line with our expected 1H19 results announced by the company: operating income 2.

83 ppm, a six-year increase of 6.

1%; net profit attributable to mother-0.

3.7 billion.

Corresponds to 2Q19 operating income1.

75 ppm, an increase of 10 years.

1%; net profit attributable to mothers was 1.79 million yuan, a year-on-year decrease of 98.


The company’s performance is basically consistent with the semi-annual performance forecast, which is in line with our expectations.

  Multiple factors lead to a decrease in performance in 1H19 -1) Net profit attributable to mothers is reduced by 1.

34 trillion, after the deduction of non-expanded increase of 15.09 million yuan, mainly due to the 1H18 transfer of Xianfengpingbaying company 100% distribution to obtain disposable investment income1.

3.2 billion.

2) Implementation of the new financial instrument specification, 1H19 accrued bad debts (credit impairment losses) increased by 11 million yuan.

3) At the end of 2018, a large number of projects under construction in Keqi and Chongyang were converted to solid, and loan refund expenses were no longer capitalized, resulting in a 38% increase in financial expenses.

  1H19 financial analysis: 1) The gross profit margin of the tourism business was extended and improved 3.

4ppt to 52.

2%, benefiting from better cost control, -2% per year.

2) The company’s expenses during the period are relatively high, accounting for 51% of revenue in 1H19, and then increasing by 5.


In addition to the rapid increase in financial expenses, sales expenses and management expenses were increased by +11.

3% / + 9.

5%, both higher than revenue growth.

3) Operating net cash flow was -37% per second, a decrease from the same period last year.

  1H19 business analysis: 1) Fanjingshan Scenic Area was listed as a World Natural Heritage in 2018. 1H19 received 550,000 tourists, each time + 36%, and its subsidiary Fanjingshan Tourism’s net profit was +33.


2) Huashan Ropeway receives 790,000 tourists, -7 every year.

4%, the subsidiary Huashan ropeway net profit for two years -22.


3) Five projects including Nanzhang Ancient Cottage and Chongyang Oushuihe are under construction, but in a continuous state.

  The development trend 南宁桑拿 continues to advance the treatment of low-quality assets.

1) 1H19 company compensated a total of 1 subsidiary company, transferred 100% equity of 1 subsidiary company, converted 1 holding company into a joint stock company, and realized a total investment income of 3.84 million yuan.

2) Overall, the company also plans to divest additional projects that need to be invested and replace the investment payback period.

  Earnings forecasts and estimates remain unchanged at 2019 / 20e EPS forecasts of 0.

24 yuan / 0.

37 yuan.

The current sustainable correspondence is 2019/202061.

0 times / 39.
1x price-earnings ratio.
Maintain Neutral rating and 16.

The target price of 30 yuan corresponds to 69 in 2019/2020.

3 times / 44.

4 times price-earnings ratio, compared with the recent inclusion of 13.

6% upside.

  Venture company management improvement failed to meet expectations; resource integration and asset replacement failed to meet expectations