China Travel （0308.HK） attended the dbAccess China Conference. The followingare key takeaways from the conference:
Positive profit in 2017 - Management guided that the net profit in 2017 isexpected to record a yoy increase of more than 200% （vs. 2016）。 This is mainlydue to 1） the growth in business operation; and 2） one-off gain derived from assetoperations.
Aiming to continue streamlining of business - China Travel has positioned itselfas a travel destinations operator. The company has been searching for acquisitionopportunities, while disposing low-quality assets. China Travel has disposed fournon-profitable and low-return assets in the recent years, and the managementguides to continue streamlining of its business portfolio over the next two years.
Key regional markets - Management has guided that the company will focus onthe development of following key regional markets: 1） Beijing-Tianjin-Hebei forbuilding snow and ski, mountain; grassland and other specialty tourist resorts;2） Eastern region for creating family-based island and vacation destinations, 3）Southwestern region for scenic resources in Yunnan and Sichuan; and 4） Southernregion for theme park projects.
Progress on new business - The company also launched its asset-light model oftourism planning and management contract. Note that the company signed 10new management contracts （tasks of system building, talent recruit and businessdevelopment） in 1H17.
Developing new leisure products - In 2017, the company developed new leisureproducts: China Travel National Holiday Park and China Travel Resort Town.