Huaqiang Fangte (834793): New Theme Park Drives High Revenue Growth
The 3Q19 results were in line with our expectations of the company’s 3Q19 results: operating income 41 for the first three quarters.
17 ppm, an increase of 24 in ten years.
7%; net profit attributable to mother 7.
50,000 yuan, an increase of 13 in ten years.
0%; corresponding profit is 0.
Among them, 19Q3 operating income was 16.
76 ppm, an increase of 22 in ten years.
6%; net profit attributable to mother 3.
20 ppm, an increase of 10% per year (because the company’s self-inspection found that there were previous accounting errors and reclassified some subjects to more reasonably reflect business development, the value of the same period last year was adjusted, and the adjusted value was adjusted as described above)
The company’s performance is in line with our expectations.
Financial analysis: 1) 1-3Q19 opened four new theme parks and contributed to the current revenue increase.
2) Due to 南京夜网 the influence of low and peak seasons, the gross profit margin restructuring fluctuates, 4Q18 / 1Q19 / 2Q19 / 3Q19 are 10 respectively.
7% / 43.
8% / 62.
6% / 60.
3) The third quarter of 19 sales expenses quarter +27.
8%, corresponding to a sales expense ratio of 21.
6%; management costs +18 per year.
4%, corresponding to the management expense ratio of 11.
7%, which basically matches the revenue growth; R & D expenses +14.
9%, corresponding to 3% of the R & D expense ratio.
Focusing on the second and third tier markets, the theme park project has entered an expansion phase.
1) The company ‘s own IP, such as Xiong Chumeng, does not yet have a strong appeal. Deeply cultivating second- and third-tier markets can avoid the involvement of conflicts in first-tier cities and make full use of China’s population size to expand.
2) The company’s IP display method that integrates culture and technology has the effect of reducing dimensionality in second- and third-tier cities, but the first-tier cities are relatively less attractive.
3) In 2019, the company has newly opened four projects in Changsha, Jiayuguan, Handan and Jingzhou. The company expects that four projects in Ganzhou, Taiyuan, Zigong and Mianyang will also open in 2020, and the speed of project implementation will be significantly accelerated.
Development Trends The initial public offering of GEM has steadily advanced.
1) On May 28, 2018, the company submitted counseling filing materials to the CSRC and was approved for trial. The counseling agency is China Merchants Securities, which intends to issue an initial public offering of shares on the GEM.
2) From April 9, 2019, the transfer of the company’s shares in the China SME Share Transfer System is suspended.
3) On May 30, the company passed the guidance and acceptance of the Shenzhen Supervision Bureau of the CSRC.
4) On September 27, the company received the “Notice of Feedback on the Review of Administrative Licensing Projects of the China Securities Regulatory Commission” of the CSRC, and is currently organizing a response to the feedback.
Earnings forecasts and estimates remain unchanged from 2019/2020 EPS forecasts of 0.
87 yuan / 1.
The current consensus corresponds to 15 of 2019/2020.
4 times / 13.
1x price-earnings ratio.Maintain Outperform rating and 16.
The target price of 00 yuan, corresponding to 18.
3 times 2019 P / E ratio and 15.
6 times 2020 P / E ratio, 19 compared with the same period last year.
The development of risk animation industry was less than expected; the return on investment in heavy assets was less than expected.