Jinwu Financial News | According to Guotai Junan Development Research Report, Fosun Tourism Culture (01992) achieved revenue of 17.152 billion yuan/ +24.5% in 2023, gross profit of 5.595 billion yuan/ +40.2%, and a gross profit margin of 32.6%, compared with 2019; net profit to mother was 307 million yuan, with a profit margin of 1.8%.
According to the bank, overseas high-end demand continues to pick up in 2023H2, with prices in the Asia-Pacific region being better than volume; the share of real estate sales business declined sharply, and it is expected that the main tourism business will focus on managing resources and speeding up profit-side recovery.
In 2024 and 2025, the net profit forecast for 2026 is 3.54 (-10%)/3.95 (-28%)/430 million yuan. Considering that the industry average PE valuation is 22x, and considering the company's scarce product positioning, the company was given 28 xPE in 2024, which is higher than the industry average, and the target price was lowered to HK$8.77 (-4%) to maintain the increase rating.