Golden Heaven signs lease deal with Zigong Culture

  • Stock Market News
Golden Heaven signs lease deal with Zigong Culture
Credit: © Reuters.

NANPING, China - Golden Heaven Group Holdings Ltd. (NASDAQ:GDHG), a prominent amusement park operator, has struck a lease agreement with Zigong City Dragon Culture & Arts Co. Ltd. (Zigong Culture), a firm specializing in cultural and artistic events.

This partnership, effective from March 11, 2024, will enable Zigong Culture to hold various outdoor activities on Golden Heaven's properties, with a lease agreement set to generate RMB 8.73 million in revenue for Golden Heaven over the year.

The collaboration is designed to diversify the visitor experiences at Golden Heaven's venues, including seasonal excursions, extracurricular activities, physical competitions, and talent shows. Payments under the agreement will be made quarterly, providing Golden Heaven with a consistent income stream through March 10, 2025.

Golden Heaven's CEO and Chairman, Mr. Jin Xu, expressed optimism about the agreement's potential to enhance the company's entertainment offerings and property management and its expected contribution to operational revenues and visitor numbers.

Golden Heaven operates six properties across southern China, comprising amusement parks, water parks, and other recreational facilities. These parks, which collectively offer around 139 rides and attractions, cover approximately 426,560 square meters of land and serve an accessible population of about 21 million people.

Although one of the parks has been temporarily closed since September 30, 2023, the company continues to provide a variety of experiences, from thrilling rides to high-tech facilities.

This news is based on a press release statement from Golden Heaven Group Holdings Ltd.

InvestingPro Insights

Golden Heaven Group Holdings Ltd. (NASDAQ:GDHG) has recently announced a promising lease agreement that is expected to boost its revenue and diversify its offerings. To provide further context to this development, here are some key financial metrics and InvestingPro Tips for GDHG:

InvestingPro Data indicates that GDHG is trading at a low Price / Book multiple of 0.41 as of the last twelve months ending Q4 2023. This could suggest that the company's stock is undervalued compared to its book value, potentially offering an attractive entry point for investors. Additionally, the company's Gross Profit Margin stands at a strong 60.76%, reflecting efficient operations and cost control.

Despite a challenging period, GDHG has managed to remain profitable over the last twelve months, with a P/E Ratio (Adjusted) of 3.73, indicating that the company is generating earnings at a rate that is relatively inexpensive compared to its share price. However, investors should note that the company's Revenue Growth has experienced a decline of -23.93% over the same period, which may reflect the broader challenges faced by the amusement park industry or company-specific factors.

InvestingPro Tips that are particularly relevant for GDHG include its impressive gross profit margins, which highlight the company's ability to maintain profitability despite revenue fluctuations. Additionally, the fact that GDHG is trading at a low earnings multiple could imply that the stock is undervalued if the company can sustain or improve its earnings going forward.

For those interested in a deeper analysis, there are additional InvestingPro Tips available for GDHG, which can be accessed by visiting Golden Heaven investors and potential investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of financial data and expert insights that could help inform their investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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