Fosun travel materials in the mainland market doubled Sanya project opened one year Golden Week reservations
The middle class population in the Mainland continues to increase and has become the growth engine of the tourism industry. Qian Jiannong, chairman and CEO of Fosun Tourism Culture (01992), said that the domestic and outbound travel market is growing at the same time. The average number of trips by mainlanders has increased from two times a year to 3.3 times, but still more per capita than in Europe and America. It is low for seven trips a year, and it is not excluded that the mainland tourism market will double again in the future.
Integration into education and recuperation
The company’s Hainan-based tourism project, Sanya Atlantis, officially opened its first anniversary. Qian Jiannong revealed that Sanya’s tourism market is not lacking in customers and only lacks products. Atlantis’ performance exceeded expectations and was opened from the end of April last year. At the end of last year, the operating income during the period was 752 million yuan (RMB. The same below), I believe this year’s trend will be better; from February 4 to 19 this year, the income of the New Year holiday has reached 150 million yuan, and the occupancy rate during the summer vacation from July to August High, will be promoted. He said that Atlantis opened its business on April 29 last year. The performance of the May 1st Golden Week is expected to increase significantly, and the booking of hotel rooms is very satisfactory.
He said that optimistic about the future development of Hainan, the government should develop Hainan into a free trade port. In early years, Shenzhen had similar policies. If Hainan had policies implemented, it would be more favorable than Shenzhen.
The company hopes to add more projects on the existing basis and can add different product content, such as combining with Fosun Pharma (02196) or other companies’ health care products to provide health care services; or it can be combined with education and sports elements to cater to The diversified needs of consumers help the occupancy rate increase rapidly.
As of the end of last year, the company has sales and marketing operations in more than 40 countries and regions, and operates 67 resorts, including 40 resorts in Europe, the Middle East and Africa, 12 resorts in the Americas, and 15 in the Asia Pacific region. (including 6 in China), this year will launch a new resort project in Taicang, Jiangsu and Lijiang, Yunnan.
Chairman: Company value is underestimated
Qian Jiannong pointed out that Lijiang is smaller than Sanya, and Taicang is larger than Sanya. It is hoped that both projects will be opened before Beijing Winter Olympics in 2022; projects in Quebec, Canada will be launched next year. He added that the company’s business in the Mainland will become more and more large, and it is interested in developing more tourist destinations in major cities such as Beijing and Guangdong, Hong Kong, Macau and Macau. If Hong Kong has suitable opportunities, it can also be invested, but the key It is a land problem.
Qian Jiannong stressed that most of the assets will be self-sustaining. There are also holiday homes for sale in the project, which provides cash back for the company. The average selling price of holiday homes can be higher than that of residential projects in the same district. The sales value of Lijiang and Taicang will be more than that of Sanya. The future value of available sales will be more than the past two years. The actual figures will be announced after the documents are signed.
Fosun Travel was listed in December last year and no dividends were proposed. The stock price was lower than the offer price for a long time, and the price-earnings ratio was over 42 times. Asked about what conditions to achieve before considering dividends, Qian Jiannong said that he will announce after the decision. He reiterated that the company’s valuation is not high, it is still lower than the historical valuation, and the profit has expanded significantly in recent years, and now it is constantly adding new content, so I believe the valuation is underestimated.