On November 6, Songcheng Performing Arts Development Co., Ltd. (300144; hereinafter referred to as: Songcheng performing arts) and Shaanxi Taiyi Group signed the general agreement of Yan’an eternal love project, which continued to expand its business against the trend. Affected by the epidemic, many A-share tourism stocks suffered heavy losses, and their financial situation plummeted. There are also hidden worries about the creativity of song city’s performing arts. The company emphasizes optimizing the passenger flow structure, but according to the investigation of “investor net”, there are still some deficiencies in this aspect, and the main weakness is that the program content is not attractive enough. < p > < p > according to the data of the third quarter report, in the first three quarters, song Cheng’s performing arts revenue was about 619 million yuan, and its net profit was 134 million yuan. Compared with last year, its revenue and net profit decreased by 72% and 89% respectively. < / P > < p > compared with the losses of many similar companies in the first three quarters, Songcheng’s performance is fair. At the beginning of the year, the company’s share price hovered at 15 yuan / share. As of December 27, the company’s share price closed at 16.58 yuan / share. This year, the horizontal arrangement was basically maintained. < p > < p > Songcheng performing arts started as a theme park, and then gradually developed into a mature business model with theme park + live performance as the core, and made eternal love series performances one of the well-known tourism performance brands in China. Relying on well-known tourism resources all over the country, the company rehearses programs and sells tickets. If only relying on tickets, the company will naturally suffer as much as the closed scenic spots, but in fact, Songcheng performing arts has explored more advanced ways to play. < / P > < p > the predecessor of Songcheng performing arts is Hangzhou Songcheng group, which started business in 1994 and went public in 2010. At the beginning, the company operated Tourism Performing Arts projects around Hangzhou Songcheng, and the park was built for it. By the end of 2000, the company’s assets had reached 60 million yuan. With the gradual growth of popularity, especially the reputation of the eternal love project, the company began to vigorously explore the brand value, combining the golden signboard of eternal love with tourism assets around the world, getting rid of heavy asset burden and making fast money. < / P > < p > specifically, the local tourist attractions use the eternal love brand, invite the company to rehearse the program, and accept the overall planning and design given by the company, resulting in a package fee paid to the company. After the project is put into use, the scenic spot also needs to share accounts with the company, which makes the company add a stable revenue channel. Just on November 6 this year, the company and Shaanxi Taiyi Group signed the general agreement of Yan’an eternal love project. The package cost of the project is 260 million yuan. Since then, the company has collected 20% of the annual revenue of the project. < / P > < p > the company’s previous light asset projects are also charged according to this standard, such as tanhe eternal love, Mingyue eternal love, Emperor eternal love, etc. At present, the company has invested in seven heavy asset projects, including Sanya eternal love, Lijiang eternal love, etc. Compared with the heavy asset projects invested by these companies, the light asset projects are obviously more suitable for expansion. From the signing of tanhe qianguqing contract in 2016 to the opening of emperor qianguqing in September this year, it took less than four years for three light asset projects to be completed. < / P > < p > from the revenue of different projects, we can see that the company does not rely on the output of fixed assets, but embarks on the road of creativity and planning. According to the semi annual report data, the revenue of Hangzhou Songcheng scenic spot is about 28.61 million yuan, Sanya Songcheng scenic spot is about 37.3 million yuan, and the design planning fee is about 178 million yuan. This project not only has high revenue, but also has lower cost, only about 2.1 million yuan, corresponding to a gross profit rate of 98.83%; Sanya Songcheng project costs about 7.5 million yuan, corresponding to a gross profit rate of 79.7%. < / P > < p > however, the asset light model is not a profit-making model, the company only exports brand value and does not control the land use right, or it will lose the benefits of land appreciation. At the same time, this kind of business model is also a disguised bet on the company’s creativity. According to market feedback, the eternal love projects all over the country are similar in content and lack of novelty to a certain extent. < / P > < p > in 2012, the company launched Wuyue eternal love; in 2013, Sanya eternal love; in 2014, there were two projects, Jiuzhai eternal love and Lijiang eternal love; in 2015, the company launched Taishan eternal love. The performance content of the above projects were mainly song and dance. The difference between the two projects is that Jiuzhai and Lijiang add more ethnic elements. “Investor net” inquired about the matter, but did not get a reply. < / P > < p > natural scenery, such as rivers, mountains and rivers, could have been integrated into the performance, relying on local unique elements to increase the uniqueness of the program, but the company’s creativity in this area is insufficient. Taking “eternal love of Mount Tai” as an example, the performance is located in Tai’an City, Shandong Province, which can make full use of the natural tourism resources of Mount Tai, but the performance venue chosen by the company is Mount Tai Grand Theater. The theater is located in Tai’an culture and Art Center, which is different from the open-air venue or no capped venue. The theater is a closed space, so it is difficult to directly introduce the natural scenery into the stage performance. The company’s competitor impression team has established the road of live performance in the early stage, emphasizing real mountain, real person and real scene. < / P > < p > however, if the company abandons the road of live performance and relies on content to win, it will also face a lot of competitive pressure. According to the statistics of Bi Jian, an expert in the industry, as of 2017, 36 acrobatics and magic offline performances have been performed in 19 provinces, cities and districts with relatively prosperous tourism. Compared with the simple song and dance performance, this kind of performance is more difficult, more technical, and the program effect has a greater impact on the audience. In other words, compared with song and dance, acrobatics and magic show has insurmountable inherent advantages in the performance content. < / P > < p > from the perspective of industry characteristics, due to the high demand for actors, the number of actors in acrobatic performances is limited. In addition to the apprenticeship system and the requirements for equipment in the industry, all kinds of factors promote the magic and acrobatic performances to perform on tour, and they travel in different cities and under the local line to compete for passenger flow. Taking Wuqiao acrobatic team as an example, in addition to performing in Shijiazhuang, Cangzhou and other headquarters in Hebei Province, it also toured Harbin, Chongqing and other places in a few years. While the song city performing arts companies, based on a certain region, relying on fixed venues to attract passenger flow mode is feasible, but passenger flow is not take all, will also face the encroachment of guerrillas. It can be seen that the competition in the industry also brings new challenges to the creative team of Songcheng performing arts. < / P > < p > from the general rule, if the content of offline performance is attractive enough, the performance company will not rely too much on tourist groups to provide customers, and a good reputation will attract a large number of individual tourists to watch it spontaneously. Songcheng performing arts has always emphasized diversified development and expanded the share of individual tourists, but the effect still needs to be observed. < / P > < p > in the investor relations activities on October 29 this year, the company said that from June 12 to now, the proportion of individual tourists far exceeds the proportion of team tourists in the company’s self operated scenic spots, which has increased significantly compared with the same period. At the same time, it also said that the company attaches importance to youth, diversification and individual customers in the product end and marketing end. Some investors asked whether the company would give a lower settlement price to the travel agency when the epidemic situation was postponed and the travel agency recovered slightly. The company said that for mature projects with high market share, the company would not settle at a low price. For projects with poor maturity, the company would follow the rhythm of the environment and respond to various situations with flexible methods. < / P > < p > take Songcheng eternal love project, which has the longest history of the company, as an example, the public comment platform shows that in the performance package, adult audience tickets are the most sold, with a sales volume of 29000 + and a price of 300 yuan; if you book tickets on the same day, you will add 20 yuan, that is 320 yuan, and this kind of package will also have a sales volume of 14000 +. “Investor net” consulted the e-commerce Department of China International Travel Service (CITS), which is located in Jianghan Road. The other side said that if you only buy Songcheng package tickets through them, there will be no discount, but you can enjoy a greater degree of discount if you join the tour group including Songcheng performance. < / P > < p > one day tour launched by the travel agency, one of which is West Lake plus song city, with a price of 330 yuan. The cost of the West Lake project mainly comes from Leifeng Pagoda and cruise ship, and the price is 95 yuan. That is to say, if individual tourists buy tickets of West Lake and song city separately, the price is 395-415 yuan, and the price given by the tour group is 65-85 yuan less than that of individual tourists. At the same time, the travel agency provides vehicles, which is also included in 330 yuan. < / P > < p > another route is Songcheng plus Xixi wetland, including cruise ships, which costs 320 yuan. According to the public comment price, Xixi Wetland package ticket including cruise is 120 yuan. If individual customers buy it separately, it will cost 420-440 yuan. And the line price provided by the travel agency can save 100-120 yuan per guest. < / P > < p > Lijiang eternal love is a similar situation. The adult ticket for its performance is 280 yuan per ticket, and the local tourist line of Lashihai, which is called riding project, is included in the ticket. The total price of separate purchase is 440 yuan. And Mr. Li of local green leaf travel gives line yuan, at the same time this price also includes car. Miss Chen of Shangyou in Yunnan said that she can give 240 yuan for the adult luxury seat ticket of Lijiang eternal love performance, which is 480 yuan in the public comments, and 50% of the ticket price can be saved through the travel agency. < / P > < p > however, not all scenic spots rely on travel agencies for sales. If the attraction of scenic spots is strong, there is no need to make profit for travel agencies. For example, CITS also has two-day tours. In addition to the above combination, one day skiing time is added separately. After inquiry, we learned that although skiing items are included in the existing routes, they are no more favorable than individual tourists who buy tickets for the ski resort alone. Group tourists can only enjoy the vehicles provided by the travel agency. Ms. Chen of Lijiang also said that the local Yulong Snow Mountain has sufficient tourists, so they sell according to the market price, and they can’t get more discount from the travel agency. From this point of view, Songcheng performing arts still needs to improve the attraction of the project, further balance the group’s individual passenger flow, and obtain a more stable passenger flow structure. Tang Jun of Soochow securities predicts that from 2020 to 2022, the revenue will be 870 million yuan, 2.88 billion yuan and 4.04 billion yuan respectively, with a year-on-year increase of 66.7%, 230.9% and 40.3%; the net profit attributable to the parent company will be 140 million yuan, 1.4 billion yuan and 1.95 billion yuan respectively, with a year-on-year increase of – 89.5%, 895.5% and 39.3%; the corresponding dynamic P / E ratio of the current share price will be 339.8, 34.1 and 24.5 times respectively. He also said that he was optimistic about the company’s business model for a long time. With the recovery of culture and tourism and the landing of new projects, and the superposition of diversified plays and big business support, the volume and price of the company can rise together in the future, and the rating of increasing holdings can be maintained. 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