Guilin Tourism (000978): Draw up supplementary flows to alleviate funding pressure and focus on the potential of regional resource integration
Matters: Guilin Tourism issued an announcement on the evening of June 4: The company is planning a non-public issue of shares and plans to use the raised funds to supplement the company’s liquidity.
The number of shares to be issued in this non-public offering is to be determined by dividing the amount of funds raised by the issue price and not exceeding 20% of the total share capital before the issuance, which is 72,020,000 shares (including the principal).
This issuance is not expected to change the company’s control.
Guoxin Social Service’s views: 1) The company gradually brings higher financial costs due to interest denial, which drags down the main business performance and is relatively transformative and development of the company. If the fixed increase and supplementary flow are successfully implemented, it is expected to optimize the company’s asset and liability structureImprove the financial situation; 2) Guilin has abundant but scattered resources. As a regional resource integration platform, the company is committed to rapidly promoting regional integration with the continuous optimization of funding issues with the support of the government and major shareholders; 3) Cooperation with Songcheng Performing ArtsThe eternal situation of Lijiang contributes new profit growth points for the company.
Taken together, we expect EPS0 in 19-21.
39 yuan, PE is estimated to be 20/17/14 times.
The resources of some scenic spots of the company are relatively diversified. In the future, if the increase in the amount of landing funds is eased, the government and major shareholders will continue to support the development and integration of regional tourism resources, and enhance the comprehensive operation capabilities through leisure upgrades.It is necessary to track the subsequent progress of the ticket price reduction policy and the pledge of Guilin Airlines, the second shareholder, and temporarily maintain an “overweight”.
Comment: The company intends to issue a non-public share supplementary stream, which is expected to optimize the company’s capital structure and improve its financial position. From the perspective of the company’s asset-liability structure, the company’s debt has always been at a relatively high level. The asset-liability ratio in the past five years is about 40%-48% fluctuations, the asset-liability ratio in 2018 is close to 45%.
Among them, interest-bearing resistance accounts for about 76% -85%, and interest-bearing resistance / total debt is 79% in 2018.
The high level of assets and liabilities and the proportion of interest-bearing debt caused the company’s capital cost to be high. In 2017 and 2018, the company’s financial expenses were as high as 38.44 million and 41.87 million yuan. Considering 2017, the company’s non-main business performance in 2018 was 5460 and 7494, respectively. Ten thousand yuan, financial expenses are a drag on the main business performance fractures.
The company is planning a non-public offering of shares in this announcement and plans to use the raised funds to supplement the company’s liquidity.
If the fixed-increasing supplementary flow is successfully implemented, the company expects appropriate funding pressures, optimizes the company’s capital structure, and improves the company’s financial position, which can increase the company’s profitability to a certain extent.
However, considering that the company announced that the company intends to issue shares not to exceed 20% of the company’s total share capital before the issue, the specific issue price and the amount of the issue are still in the process of demonstration. If the current price is converted into 9, the raised capital will be about 3.
US $ 600 million will help save financial costs, but considering the possible dilutive impact of additional shares, we expect the impact on EPS to be relatively stable after a comprehensive balance.
The company is a Guilin regional resource integration and financing platform. After the optimization of funds, it is expected to further actively seek the development of Guilin Tourism (000978), which belongs to the state-owned asset right of Guilin City. At present, it is a Guilin municipal-level tourism resource integration platform supported by the government and major shareholders.
The company stated in its 2018 annual report that it hopes to become a large tourism group holding listed company with innovation and sustainable development capabilities in the future, and become the largest and strongest tourism group in Guangxi.
In the next 3-5 years, we will strengthen the capital operation through “three steps” and “five catches”, realize the large integration and management of tourism resources, and continue to strengthen and expand the tourism business, which will enable the company to leapfrog to high-quality tourism., And help Guilin tourism develop better.
Combined with our Air Force analysis, Guilin’s regional tourism resources are very rich, but they are extremely scattered and urgently need to be integrated.
As shown in Table 1 below, Guilin has 3 5A-level tourist attractions, 15 4A-level tourist attractions, and 2 3A-level tourist attractions.
However, these spots are mostly scattered and scattered.
At the same time, in addition to Guilin Tourism Listed Companies owning nearly half of its subordinate attractions, other operating entities are also scattered. Although Guilin attractions have developed for many years, they have not yet formed a synergy, and the overall planning, including some tourism facilities, is still relatively inadequate.
At the same time, due to the scattered spots, the connection of traffic will also affect the satisfaction of tourists (especially free travellers) during the tour, and the passenger flow of some remote places is also relatively deviated.
Therefore, regional resources need to be integrated and upgraded urgently.
Absolutely, after considering the opening of the Guizhou-Guangzhou high-speed rail, Guilin is only 3-4 hours away from high-speed rail in cities such as the Guangzhou-Shenzhen center of the Pearl River Delta, and future leisure and vacation upgrades will have better base support for tourists.
Considering that the listed company is the leader of Guilin’s tourism area, and the gradual solution of the listed company’s funding problems in the future, with the support of the government and major shareholders, it is possible to gradually increase and deepen the integration of regional tourism resource products with major shareholders, coordinate marketing management, and enrich the tour route.Exploring product models such as package tickets to better strengthen its own projects for leisure and vacation upgrades and the improvement of comprehensive operating efficiency, which will help the company to continue to grow and reduce its dependence on the ticket economy.
In addition, the company will continue to promote the integration and activation of unprofitable or acquired corporate assets in order to better improve the company’s superior resource performance.
Guilin Lijiang Qianguqing started well and is expected to bring new growth to the company. Lijiang Qianguqing, which cooperated with Songcheng Performing Arts, has officially opened in July 2018. The company accounts for 30%. In 2018, Lijiang Qianguqing contributed investment income to the company.210,000 yuan, profitable in the first year of opening, outstanding performance.
According to our continuous tracking, this year’s Q1 and Qingming, the Lijiang Eternal Love performed well during May Day, of which tourists were received during May Day6.
10,000 people, 6 performances in a single day, a new high since the opening.
Moreover, as an indoor performance, it is relatively less affected by the weather and overlaps its brand and marketing advantages. 四川耍耍网 Therefore, Impression Liu Sanjie’s PK is expected to win faster.
Taken together, referring to the outstanding achievements of other projects of Songcheng Performing Arts, combined with our continuous tracking, we believe that based on the abundant passenger flow in Guilin area and combining the scriptwriting operation capabilities of Songcheng Performing Arts, Lijiang Eternal Fun has become a new profit for the companygrowth point.
We expect Guilin Eternal Love to achieve revenue in 20191.
The contribution of 400 million US dollars to the investment income of listed companies is expected to be about 1.35 million to 16 million yuan. Earlier 18 years, the non-main business output increased by about 18-21%, which is expected to continue to help the company grow.
Investment suggestion: Draw up supplementary replenishment 武汉夜生活网 to resolve capital constraints, take into account the price reduction of tickets and the pledge of two shareholders, and temporarily maintain the “overweight” forecast of EPS0 in 19-21.
39 yuan, PE estimates 20/17/14 times, it is estimated that the company’s historical low.
The company’s proposed supplementary flow in this announcement shows that the company hopes to optimize its capital structure and alleviate funding pressure. In the future, it can further integrate regional resources with the support of the government and major shareholders to enhance the company’s scenic area resource efficiency.
The resources of the company’s scenic spots are relatively diversified. In the future, if the increase in landing funds is eased, the government and major shareholders will continue to support the development and integration of regional tourism resources, and enhance the comprehensive operation capabilities through leisure upgrades.It is necessary to track the follow-up progress of the ticket price reduction policy, the progress of the fixed increase and the pledge of the second shareholder, Guilin Airlines, to temporarily maintain the “increase in holdings”.
Risk reminder Ticket price reduction risk; State-owned enterprise reform or resource integration situation is expected; the current non-public offering of shares and the use of raised funds are feasible During the demonstration process, there is significant uncertainty in the matter; the second shareholder may be due to HNA fundingRisk of pledge being forced to liquidate.