Category: Money tips Release Date: 2006-02-04
1. To seize the main tourism industry, the strategic expansion of resource possession-oriented one "Guilin mountains and rivers under heaven," Road to make the world beautiful scenery of Guilin highly appreciated, Guilin tourism as Guilin, Guangxi Province, as well as the only one to tourism industry, listed companies, their capital operation platform and the status of resource integration platform is self-evident. Guilin Li River is only the beginning from the listing of cruise ships and tourist vehicles, taxi business, through self-development, acquisition, cooperation, a variety of ways, and actively involved in the abundance of fish rock, Yinzi Yan, Dragon's Back terraced fields, Longsheng Hot Springs, Hot Springs, as well as Hezhou Elephant Hill, Seven Star Park, Jinggangshan and many other tourist resources management and development. Despite the historical conditions (such as the concept of market-oriented operation is lagging behind), and institutional constraints (such as split share structure lead to large shareholders, management, and target the interests of small shareholders, the great differences), the company also faces development bottleneck, but with the Guilin City tourism economy, the establishment of key strategic position, and the completion of split share structure reform, the Company's control of tourism resources in surrounding areas began to Guilin scenic area to the core resources "march", thus breaking the geographical restrictions, and actively integrate tourism resources inside and outside the province, has developed into a in Guangxi province's most powerful tourism enterprises.
In addition, Guilin Tourism to develop tourism in the main business at the same time, the tourism industry to circumvent the event of unforeseen events (such as SARS) to the business caused by sharp fluctuations, but also try to intervene with high barriers to entry, relatively stable earnings prospects of the franchise services, such as pipeline gas, passenger stations, taxi and other industries. Although it is a mixed business-related businesses, but we believe that the above core values of the business lies in its monopoly, while the profitability will change as a number of conditions can be improved, and this, we should have enough confidence.
2. Integration "two rivers and four lakes" area, a model of innovation and control of core resources "Guilin scenery" of the valuable point is that the beautiful rivers and mountains in the perfect combination of beauty, therefore, take a sightseeing boat tour Lijiang River and the surrounding landscape scenery Guilin Tourism Business an important way. There are two scenic Guilin belt, one with the Li River landscape scenery, Guilin tour of the cruise business currently operates as the main tour will be the main content (Zhu Guilin to Yangshuo Lijiang River pier line), the second is "two rivers and four lakes" (Lijiang, Taohuajiang, Ronghu, Cedar Lake, Guihu Lake, wood Longhu ring composed of water) landscape belt, this line within the concentration of Guilin, the most famous classic scenic spots, there are Xiangshan, Fubo Hill, Diecai Hill, the elderly mountain and so on, as far as Reed Flute Park, through the further dredging of navigation channels, by the Li River cruise can also be directly into the small East River, into the Seven Star scenic area. The tour will join the vast majority of essence within the scenic spots in Guilin, Guilin tourism to create a "golden lines." Moreover, we believe that this water tourist routes, once formed, initially by road transport (cars) "fought" each way scenic tour will be a direct impact, visitors will be more choices of water lines. Therefore, the use of "water ring" cruise carried out in direct control of operations is equivalent to the heart of scenic landscape of Guilin resources (boats, scenic joint ticket sales), technology is also good to circumvent restrictions on the state, through the model innovation received has a strong monopoly position of the core business resources.
At present, the scenic spots in Guilin Xiangshan In addition, Mt by a stock company and the Guilin Tourism Development Corporation (hereinafter referred to as "Company"), co-operation, the other by the head office operations, while the ring belongs to municipal water utilities, municipal government control. We expect that, Guilin tour this year may raise money through the refinancing of the acquisition, integrate the "two rivers and four lakes" tourist routes. The investment involved in around the city water system in the lock, landing pier, franchises and many other assets, estimated total investment will reach 3 billion yuan. As the cruise line is currently related to pricing and ticket into the final program has not yet formed, the detailed calculations know where to begin, but we are a conservative estimate, the normal operation of the project's investment rate of return should not be less than 10%.
3. Scenic resources, strategic position appear, profitability, by virtue of their growing Guilin, Guilin, Guangxi Province, as well as a platform for development of tourism resources position through acquisitions since its listing, cooperation, equity and other methods to intervene Yinzi Yan, Fung fish, rock, Dragon's Back terraced fields, Elephant Hill, Seven Star Park and the scenic Jinggangshan the development, operation, along with the maturing tourist routes, scenic growing profitability, return on investment better and better. In 2006, we expect pre-tax profit of scenic Yinzi Yan nearly 2,000 million, Dragon's Back terraced fields are 400 million yuan, and cooperation in Xiangshan, Seven Star Park, a steady revenue growth, scenic spots business showing rapid growth of the overall development trend. The equity shares of Jinggangshan Tourism Development Corporation as a domestic "red tourism," an important business enterprise, subject to the parties attach great importance, we believe that the company's operating businesses related to the integration, carded, revenue is expected to significantly improve in the short term to meet the listing requirements, a "red tourism" shares listed first.
In addition, the company's timely intervention leisure tourism resources - Hot Springs (Longsheng, Hezhou) development, the continuous improvement of people's income level, for leisure tourism made by a higher demand, hot springs, as one of the three major types of holiday tourism resources around the resources for recreation, entertainment, catering and other services to enhance the user ARPU value, will become the new company's future earnings growth. At present, the initial huge investment in Longsheng Hot Springs has begun to profit, the Center Hotel, Long-fu Villa, the annual average occupancy rate of around 50%, but the entertainment and leisure services have yet to be enhanced in order to improve profitability. The hot spring despite the current operating conditions of Hezhou general, or even a certain degree of loss, but with the 2008 "Guangzhou - Wuzhou - Guilin" The expressway opened to traffic, Hezhou as an important node in the middle, source a marked improvement in profitability will be increased dramatically.
4. Earnings forecasts and investment rating in our view, with the completion of the reform of the system, Guilin tourism resources integration platform, significantly enhanced the status of the various assets, profitability, significant improvement also in the process, it is expected 2006 earnings per share will reach 0.27 yuan , and is considering the acquisition of "two rivers and four lakes" tour of the scenarios, 07,08 increase earnings per share forecast to 0.36 yuan and 0.46 yuan. According to this research, we have reason to believe the company will enter the next few years, high-speed development period, accordingly, we have initially raised rating companies to invest in the "optimal -2."
