Haichang Ocean Park (2255.HK) Rising profitability of new projects June 11, 2019 365

PSR Recommendation: BUY Status: Maintained
Target Price: HKDHKD2.05

Investment Summary
Stable Revenue Growth in Theme Park Segment with Continuous Improvement of Revenue Structure Haichang Ocean Park, China`s leading theme park developer and operator, is operating ten projects in Dalian, Qingdao, Tianjin, Yantai, Wuhan, Chengdu, Chongqing, Shanghai and Sanya. The operating projects include seven ocean theme parks, one adventure-themed amusement park, one immersive ocean-themed entertainment complex and one water-
themed park. In addition, a new project is under construction in Zhengzhou. The Company`s operation segment maintained a stable growth in 2018, as revenue generated from ten theme parks reached RMB1.62 billion, grew by 7.9% year-on-year; specifically, ticket revenue was RMB1.27 billion (+7.8%yoy) while non-ticket revenue, the proportion of which increased to 29%, reached RMB470 million (+8.5%yoy). Revenue generated from the Company`s property segment decreased by 30% to RMB44.4 million. The Company`s other income and gains increased from RMB160 million in 2017 to RMB440 million, mainly due to the increase in government grants.

About the author

Profile photo of Zhang Jing

Zhang Jing
Phillip Securities (HK)

Bachelor Degree in Tongji University of Engineering; Master Degree in East China Normal University of finance. Currently covering the automobile and air sectors. She has years of experience in investment research and is good at combining analysis for the companies with industry prospects.

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