China International Travel Service (601888): Growth in the first half of the year is in line with expectations

China International Travel Service (601888): Growth in the first half of the year is in line with expectations

China International Travel Service (601888): Growth in the first half of the year is in line with expectations

The performance is in line with expectations. After excluding travel agencies, the gross profit margin increased significantly: first-half revenue was 243.

44 billion / + 15.

46%, due to the divestiture of the travel agency in January and the 成都桑拿网 impact of Shanghai’s consolidation on March last year, the net profit attributable to the mother was 32.

7.9 billion / +70.

87%, deducting non-attributed net profit of 25 ppm / + 30.

86%, mainly due to the impact of about 700 million investment income generated by the divestiture of travel agencies, EPS1.

68 yuan, consistent with the express.

Among them, Q2 revenue was 106.

5.3 billion / -12.

94%, net profit attributable to mother 9.

7.3 billion / + 28.

21%, net profit after deducting non-return to mother 9.

10 billion / + 20.


The overall gross profit margin is 51.

05% / + 9.

83pct, mainly due to the replacement of low-margin travel agency business, excluding this effect, the gross margin of merchandise sales business51.

76% / + 0.

09 points.

Of the three fees, the sales rate is 30.

29% / + 12.

20pct, due to the implementation of airport tax-free business (new deduction points at Pudong Airport T2 and Hongqiao on January 1 this year, Beijing Airport started new deduction points on February 11 last year), resulting in increased rental fees and expenses; management fee rate 2.

32% /-0.

42 points, financial expense rate 0.

05% / + 0.

11 points.

Outlying islands are exempt from tax growth, and Shanghai Airport ‘s 18-year tax exemption has contributed to a significant increase in performance: the first half of the subsidiary ‘s annual revenue was 237.

3.8 billion, of which tax-free revenue was 229.

08 billion / +53.

26%, tax-free gross margin of 52.

29% /-0.


1) Sanya Haitang Bay revenue 53.

2.9 billion / + 28.

72% (including tax-free revenue of 51.

8.1 billion / + 28.

50%), net profit 8.

3.3 billion / + 5.71%.

This was due to the increase in rents and property costs in the second half of last year.

2) Shanghai Airport tax-free revenue 73.

7.7 billion / + 92.

41%, net profit attributable to mother 3.

2.1 billion / + 49.

30%, mainly due to different calibers in a few years (Shanghai-Shanghai revenue in the first half of the year is March-June consolidated income); 3) Capital Airport’s tax-free revenue43.

6.5 billion / + 25.

54%, of which China and Japan revenue 37.

6.6 billion, net profit attributable to mother is zero.

9.5 billion.

4) Hong Kong Airport tax-free revenue12.

9.6 billion / + 36.


5) Guangzhou Airport realized tax-free revenue8.

44 billion / + 193.

06%, mainly because T2 increased its operating area by more than 6000 square meters after its opening in May 18th.

A property and casualty insurance company has been established, and the city’s duty-free shops have been opened. It is expected that the Chinese policy will be implemented: the company and the group plan to establish a China Travel Property and Casualty Insurance Company, of which the group intends to contribute 2.

8.3 billion, 28 shares.

33%, the company plans to invest 50 million, 5% shareholding ratio, in the future will be travel insurance and company customer resources, services and other related, to promote industry-finance synergy, is conducive to the development of the company’s tax-free business.

In addition, the stores in 5 cities have been opened. Although they are only targeted at foreign tourists, if the city’s tax exemption policy is released in the future, it will expand the scope of tax exemption.

Profit forecast: The company is still in a period of rapid development. We are optimistic about the company’s future development.

Taking into account the significant increase in the company’s overall gross profit margin after the removal of the travel agency and the impact of the Hong Kong incident, the EPS for 19-21 is raised to 2.

36, 2.

62, 2.

97 yuan, maintaining the “overweight” level.

Risk warning: economic downturn, gross margin growth is less than expected, tax exemption policy falls short of expectations