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CYTS (600138) 2019 Third Quarterly Report Review: The Third Quarterly Report steadily travels the corporate body to help the center focus on integration

CYTS (600138) 2019 Third Quarterly Report Review: The Third Quarterly Report steadily travels the corporate body to help the center focus on integration

The results in the third quarter were flat, in line with expectations. In the first three quarters of 2019, the company achieved revenue of 95.

4.5 billion / + 6.

90%; return to mother’s performance5.

45 ppm / -0.

33%, deducting non-performance slightly fell 5.

43%, EPS0.

75 yuan / share, fully in line with expectations.

In Q3, the company’s revenue / performance / deduction for non-performance was +9 each.

83% / + 14.

77% / + 16.

98%, a marked improvement from the first half.

The World Garden Fair has helped increase integrated marketing growth. Wuzhen has increased steadily, Gubei Q3 has been generally stable in Q3, and 北京夜生活网 passenger flow in Wuzhen scenic spot has increased by +5.

69%, slightly faster than the first half of the year, revenue performance is flat, after the deduction is expected to grow steadily.

In the first three quarters, the passenger flow in Wuzhen was +1.

63%, revenue performance is stable.

Q3 Gubei water town passenger flow insert 4.

38%, corresponding to a slight decline in revenue and performance of about 2%, an improvement over the first half.

Due to regional pressure in the first three quarters, passenger flow and revenue each fell by 6.

76% / 5.

59%, and due to the decrease in real estate investment income, the performance increased by about 17%.

Benefiting from the World Garden Fair and the development of large projects, in the first three quarters, the revenue / performance of China Youth League increased by 4 each.

66% / 49.

79%, of which Q3 performance increased by 200% + especially at a low base, which helped the company’s Q3 performance improve.

The company’s Q3 gross profit margin was flat, and the expense ratio fell to 0 during the period.

22pct, mainly because the sales and financial expense ratio fell to 0.

38/0.

37pct, the pressure of rising labor costs in the second half of last year began to improve from Q3.

In the first three quarters, the company’s gross profit margin increased slightly by zero.

30pct, the cost rate increased by 1.

35pct, in which the sales / administration fee rates increase by 0 respectively.

84 points / 0.

44pct, mainly due to the increase in labor costs, the financial rate is relatively flat.

It is expected to be initially stable, with the help of Journey.com as a legal person, and the medium and long-term focus on the substantial progress of Everbright integration combined with changes in Q3. We expect the company’s performance to be stable.

In the three quarterly report of the combined company, the company has now basically completed the legalization of Miyou.com. In the future, Miyou.com’s independent assessment will help it continue to reduce losses and optimize its business, as well as its multi-platform business development.

In the medium and long-term, we believe that one is to pay attention to the substantial progress of Everbright’s integration, the improvement of internal energy and high-quality resources; the second is to pay attention to the gradual expansion of tolerances and the continuous growth of product upgrades near Wuzhen, and the third is to gradually smooth out the equity issue in GubeiAfter that, the enthusiasm of active marketing will be further strengthened, and the operating potential is expected to be gradually released. Fourth, the trial operation of Puyuan in 2020 is expected to bring mid-to-long-term highlights.

Risk warning: Gubei equity risk, ticket price reduction risk, Everbright integration may be lower than expected.

Investment suggestion: The performance is expected to be stable at the bottom, waiting for the integration of good news, maintaining the mid-line “buy” and maintaining EPS 0 in 19-21.

84/0.94/1.

09 yuan, corresponding to PE 14/13 / 11x.

The company’s total market value is at the historical bottom, and it is estimated that it is also at the bottom of the plate.

After considering the corporatization of Youyou.com, the performance of independent assessment will improve in the future, and the company’s own resources will be excellent in the mid-line view. Only Wuzhen Gubei’s market value is adequately supported. If Everbright’s integration and speed-up potential is still worth looking forward to, the mid-line “buy” will remain.