Caesars Travel (000796): Performance in line with expectations Industry recovery boosts performance

Caesars Travel (000796): Performance in line with expectations Industry recovery boosts performance

A Brief Comment on 81 Years of Revenue 81.

80 ppm / + 1.

67%, net profit attributable to mother 1.

9 ‰ /-12%.

19 Q1 revenue 18.

06 ppm / + 0.

41%, net profit is 0.

3 ‰ / + 8.

4%, deduct non-attributed mother -0.

1 ppm / -140%.

Operating analysis revenue was in line with expectations, and results were dragged down by employee compensation and advertising costs.

Wholesale and retail are affected by the industry, passenger flow and gross margin changes, and the steady growth of the catering business has certain support for the company’s revenue growth: Affected by the unsafe events in the external destination market and the domestic macro economy in the second half of 18The growth was exacerbated by weakness, with 116 outbound visitors.

60,000 person-times / -6.

8%, of which 34 were wholesale receptions.

30,000 people / -10.

29%, retail reception 64.

30,000 people / -8.

2%, the award reception 17.

97 thousand people / + 6.


The customer unit price of the wholesale and retail business has improved. Due to the change in destination structure, the customer unit price of the bonus business has decreased.

Wholesale revenue 12.

6 ppm / -2.

33%, retail 47.

1 ppm / + 1.

32%, 10 will be awarded.

5 ppm / -1.


Catering business has achieved a three-fold increase in rail catering, but passenger unit prices have declined (36% revenue growth). Due to the reform of the railway catering system, aviation catering has grown steadily (the catering volume and revenue growth rate were 3 respectively.

8% / 6.


Wholesale gross margin declines (4.

4% /-1.

17pct), retail gross margin 16.

22% /-0.


The increase in expenses such as employee compensation and advertising in sales expenses led to a decrease in the two figures of performance and good management of management expenses.

Revenue performance remained flat in the first quarter, and profits increased by 8% due to increased investment income: insecurity in Southeast Asia and the impact of the domestic macro economy on the tourism market still existed, and revenue in 19Q1 was basically flat. From the industry perspective, Thailand received the Mainland from January to MarchTourist distance 2.1%, Vietnam vanadium 5.

6%, Japan increased by 11.


From a trend point of view, the impact of unsafe events in Southeast Asia has weakened, and Japan’s outbound tourism performance has clearly picked up.

The company’s profit increased by 8% due to the increase in investment income, and the net profit after deduction was reduced by 10 million.

The company’s retail-side advantage indicators, continuous optimization of offline stores and the creation of online marketing channels work simultaneously; at present, the acquisition of C-end resources by travel agencies and the control of upstream resources are relatively important aspects.Relatively high product.

At present, there are differences in the strategic choices of domestic outbound travel agencies in the wholesale business and retail business, but under the situation that the market profit space is gradually squeezed, from wholesale and retail selection to wholesale and retail integration is an inevitable trend for the development of outbound travel agencies.

In the future, the company will benefit from the development space of the industry and the process of gradually increasing the city’s share. The establishment of a travel agency branding can exist in both quantity and price logic, and form the company’s competition barriers through brand and service.

Profit adjustment and investment recommendations 19-21E Performance 2.


200/400 million US dollars (considering the company’s sales expenses increased by 37% / 39% in 19-20 years), a growth rate of 33% / 23% / 26%, EPS 0.



5 yuan, PE 26/22 / 17X, maintain overweight rating.

Risks indicate the impact of security and policy factors; the risk of RMB depreciation leads to a decline in the actual consumption level of outbound tourism; the domestic economy leads to a slow growth of outbound tourism; offline store layout and online promotion are dragged down.