August 3 -- Emei Shan Tourism (000888) reported first half earnings which missed market expectations, with net profit up 0.13 percent year-on-year, reports National Business Daily, citing a company filing.

The company attributed the disappointing earnings to the increase in the corporate income tax rate from 15 percent to 25 percent during the reporting period.

Emai Shan Tourism was granted a preferential income tax rate of 15 percent from 2002 to 2010.

The hike in the corporate income tax rate saw the company paying income taxes of 5.48 million yuan in the first half, up 88.91 percent year-on-year. The proportion of taxes to net profit rose from 18 percent to 34 percent in the first half.

An analyst from a brokerage said the company's previous earnings per share (EPS) estimate of 0.59 yuan was based on a 15 percent income tax rate. With the hike in tax rate, the EPS estimate will be reduced by 12 percent to 0.52 yuan.

Another analyst said though the brokerage is optimistic about Emei Shan Tourism in the long run, its earnings estimate may be downgraded.

In addition, Orient Securities has reduced its 2011-2013 earnings forecast for the company. However, considering the recovering tourism industry, the introduction of environmentally-friendly vehicles at its scenic spots, and expectations of higher ticket prices, the brokerage estimates 2012 EPS at 35 times earnings, with a target price of 24.5 yuan.

Shares of the company rose 1.4 percent to trade at 18.8 yuan at 11:05 today.