A cultural, 188bet login and real estate integrated operator with a central enterprise background。OCT A (000069) is a listed company in the 188bet login and real estate sector of OCT Group，Listed on the Shenzhen Stock Exchange in September 1997。The company’s main business covers cultural 188bet login business and real estate business，In the past five years, we have innovated and created the development model of “188bet login + Internet + finance” and “culture + 188bet login + towns”，At the same time, the controlling shareholder is strong，Overall very core competitiveness，Ranked among the top 4 theme parks in the world for 6 consecutive years，Ranked among the comprehensive strength of Chinese characteristic town operators、Topping the dual ranking list of China’s cultural 188bet login town operators。

Unique way to get land，Focus on high-energy cities。The company pioneered the "188bet login + real estate" collaborative land acquisition method，Adhere to the cooperative development model，Reducing land costs and investment risks、Good results have been achieved in accelerating the return of funds，47 new land acquisitions in 2019，28 projects were delisted at the lowest price。At the same time, the company deepens its layout in key areas，Focus on first- and second-tier high-energy cities，As of the end of 2019，The company achieved a contracted area of ​​2.52 million square meters，22% year-on-year increase；Realized contract value of 86.3 billion yuan，45% year-on-year increase，Achieve “one city, multiple points” layout in multiple key cities。The total construction area of ​​the cumulative land reserve is 4605.090,000 square meters，The newly added construction area in 2019 is 12.08 million square meters，The total construction area in first- and second-tier cities is 7.89 million square meters，Accounting for 65% of the new land bank construction area in 2019。

Cultural Industry Leader，Global 188bet login demonstrator。The main formats of the company’s cultural 188bet login industry are theme parks and hotels，The company has 18 scenic spots in 2019、24 hotels、1 travel agency、2 open tourist areas。The company received a total of 52.09 million tourists in 2019，12% year-on-year growth。As one of the first pioneers to establish theme 188bet login parks in China，The company has obvious advantages in popularity and influence，Individual theme parks mainly include Happy Valley、Three series of Splendid China and Window of the World。The company has been under management in recent years、Incorporating the latest technology into 188bet login data，Achieve precise management，Improve management and control efficiency。

Steady revenue growth，Expense control is effective，188bet login’s cumulative repurchases are 1%。Achieve revenue of 60 billion yuan in 2019，25% year-on-year increase，Gross profit margin reaches 56.58%。Benefit from the low-cost resource acquisition advantages and high premium market sales brought by 188bet login's business model，Gross profit margin has remained above 50% for 10 consecutive years，Management expense ratio has continued to decline for 4 years，Operation quality improvement，Financing cost reaches a low of 4.56%。188bet login began to repurchase 188bet login's shares through centralized bidding in March 2020，Cumulative repurchases as of May 11: 8202.50,000 shares，Accounting for 1% of the total share capital。We think，On the one hand, 188bet login’s repurchase reflects the management’s confidence in 188bet login’s future operating performance，On the other hand, make preliminary preparations for subsequent management equity incentives、Lay the foundation for improving the long-term governance structure。

Investment recommendation "Outperform"。We give 188bet login a PE valuation of 5-6 times in 2020，The corresponding reasonable market value range is 71.5-85.8 billion yuan，The corresponding reasonable value range is 8 per share.72-10.46 yuan，Rating "Outperform"。Risk Warning。The completion progress of 188bet login’s real estate project was affected, causing the carryover area and income to be lower than expected。

*Source of this article：Sina Finance，Author:Haitong Securities Co., Ltd., original title：《OCT A (000069): A cultural and 188bet login pioneer with high resource endowment, focusing on high-energy cities》.