(Yicai Global) Jan. 16 -- Shares of Tianmu Lake Tourism, which develops and runs tourist attractions in the Yangtze River Delta region, fell after the firm said it expects net profit to have tumbled by 68 percent to 77 percent last year, mainly because of the impact of Covid-19.

After dropping by as much as 1.6 percent in afternoon trading, Tianmu Lake [SHA: 603136] closed down 1 percent at CNY26.06 (USD3.88) a share today. The benchmark Shanghai Composite Index fell 1 percent. The stock has climbed by more than 50 percent in the past 12 months.

Net profit was likely between CNY10 million and CNY13.5 million (USD1.5 million and USD2 million) in the 12 months ended Dec. 31, Changzhou-based Tianmu Lake said yesterday.

In the third quarter of last year, the firm reported net profit of CNY56.2 million, compared with a CNY53 million net loss in the first half. Revenue jumped 70 percent to CNY154 million (USD23 million). Implied fourth-quarter earnings were about CNY20 million, Yicai Global calculated based on its third-quarter results and full-year prediction.

Apart from planning, developing, operating, and managing visitor attractions, Tianmu Lake also offers travel agency services. The Tianmu Lake scenic spot in Jiangsu province is the company’s main business.

Thanks to an upsurge in travel in surrounding areas, visitor numbers to Tianmu Lake can recover to pre-pandemic levels even faster than those for long-distance tourist destinations, Sinolink Securities said in a recent research report.

As a preferred destination for short trips for people living in Jiangsu and nearby Zhejiang province and Shanghai, Tianmu Lake’s visitor flow is expected to recover first in the wake of Covid-19, East Asia Qianhai Securities said.

Editor: Futura Costaglione