The other dayPokerfordummiesTianfeng Securities released Haichang Ocean Park (02255Pokerfordummies.HK) comment report. The summary of the research report is as follows:

Event: the company publishes its 23 annual report. The 23-year revenue of 1.817 billion yuan / yoy+129.1%, was 64.8% higher than that of 19 years; the net profit of returning to the mother was-197 million yuan, which was significantly smaller than that of the same period in 22 years; and the adjusted EBITDA profit was 459 million yuan, which was a great improvement over the 22-year transition from negative to positive.

All business sectors continue to recover. (1) Park operation business: by the end of 23, the company owned and operated 7 theme parks. The total number of visitors to the park in 23 was about 9.29 million. With the exception of the newly opened Zhengzhou Park, the total number of visitors increased by 101.9% compared with the same period last year, which is 108.0% higher than that in 19 years. The total revenue of the park sector in 23 years was 1.69 billion yuan / yoy+125.3%, except for the newly opened Zhengzhou Park, which also increased by 118.6% over the same period last year, with a recovery degree of 104.4% compared with 19 years. From the split point of view, the 23-year park operation business ticket income of 900 million yuan / yoy+159.2%, park consumption of 570 million yuan / yoy+104.7%, rental income of 0.3 billion yuan / yoy+6.4%, hotel income of 1.9 billion yuan / yoy+92.6%. According to Euromonitor International, the growth and recovery of the company's theme parks in 23 years is much higher than the average of Chinese theme parks. (2) Culture and travel service and solution business: the revenue of 23 years is 130 million yuan / yoy+193.9%, of which the product line of boutique aquarium is advancing rapidly, with an annual income of 90 million yuan and an income of about 10 million yuan in January and February in 24 years. As of March 17, 24, the company has operated 20 aquariums rich in marine culture and urban parent-child experience, and there are still 10 boutique marine pavilions in negotiations. The product line of the Children's Ice and Snow Center project was also launched in Shenzhen's Baoan District in April 23 and generated positive cash flow in the same year. (3) IP operates new consumer business: at present, the company has obtained the IP cooperation authorization of Altman ULTRAMAN series, Hangwang and Baby Shark, and has landed 4 Altman theme pavilions and 2 Air China Sea King theme pavilions in 2023, realizing the commercial landing of IP. In the future, new business type will continue to enrich IP reserves and further operate its own IP to realize the new scene of IP+.

The project is rich in reserves and has broad room for growth. The company will continue to expand the breadth and depth of its business on the basis of rich experience in literature and tourism operation. The Zhengzhou project opened at the end of September 23, and its two-hour traffic circle can radiate 450 million people, and the company expects the cash flow of the project to become regular in 24 years, and the second phase of the project is expected to open in 24 years. Jinqiao Haichang Penguin Resort is also expected to open in the same year. Shanghai project as the company's flagship project, the number of visitors to the park in 23 years increased by 118.6% compared with the same period last year, 116.6% compared with 19 years, and revenue increased by 132.4% year-on-year and 106.9% compared with 19 years. At the same time, the company plans to further promote the expansion of Shanghai Park. Through the second phase of the expansion project of light asset model, it will include elements such as hot spring hotel, Ocean Wifi Hotel, marine exploration center and characteristic hot spring hall. It is expected to open in 25 years. Beijing Haichang Ocean Park project, as the company's first project in Beijing area, is now in the design stage and is expected to open in 26-27. In addition, the Haichang Ocean Park project in the Kingdom of Saudi Arabia is expected to open in 2030. The company has a rich reserve of follow-up large-scale projects, coupled with the optimization of the operation of existing literature and tourism projects, the acceleration of the deep integration of IP and theme parks, the commercial opportunities of IP theme pavilions, the export of local culture and tourism projects, etc., the future growth space is very broad.

Investment suggestion: with the rebound of the domestic literature and travel market over the past 23 years, the company's business as a whole has recovered and achieved great improvement. The company's existing projects are of excellent quality, the reserve project is rich and potential is considerable, and the company is optimistic about the growth space of the company. based on this, we estimate that the company's 2024-2026 net profit will be 0.3amp 160,000,000 yuan, maintaining the "buy" rating.

Risk hints: macroeconomic fluctuation risk, industry competition intensification risk, passenger flow recovery less than expected risk, operation and project construction lower than expected risk, etc.