Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - In Q1 2025, the company achieved operating revenue of 1.765 billion yuan, a year-on-year decrease of 4.34%, while the net profit attributable to the parent company was 143 million yuan, a year-on-year increase of 18.37% [6][2]. - The hotel industry is expected to experience steady growth due to the gradual recovery of the economy and the increasing investment willingness of franchisees [2]. - The company plans to open 1,500 new hotels in 2025, accelerating its expansion pace and continuously enhancing its hotel product offerings [2]. - The company has significant room for expansion in the mid-to-high-end hotel segment in lower-tier markets, supported by a strong inventory of existing stores [2]. - The expected net profits attributable to the parent company for 2025-2027 are 948 million, 1.084 billion, and 1.195 billion yuan, corresponding to PE ratios of 17, 15, and 13 times, respectively [2]. Summary by Sections Financial Performance - In Q1 2025, the company opened 300 new stores, a year-on-year increase of 46.3%, with a focus on mid-to-high-end hotels [2]. - The RevPAR (Revenue per Available Room) for all hotels, excluding light management hotels, was 141 yuan, a year-on-year decrease of 4.6% [2]. - The average daily rate (ADR) was 228 yuan, down 2.0% year-on-year, and the occupancy rate (OCC) was 61.7%, a decrease of 1.7 percentage points [2]. Operational Efficiency - The company managed to reduce its expense ratio, leading to an increase in net profit margin [2]. - The gross profit margin decreased by 1.23 percentage points to 35.36%, while the expense ratio fell by 1.81 percentage points to 25.76% [2]. - The net profit margin improved by 1.82 percentage points to 9.07% due to gains from the disposal of long-term equity investments [2]. Market Position and Strategy - The company is focusing on enhancing its brand image through continuous product iteration, such as the upgrade of its "Home NEO" brand [2]. - The proportion of mid-to-high-end hotels in the company's portfolio has increased, with 29% of hotels classified as such by the end of Q1 2025 [2]. - The company has a robust pipeline with 1,724 signed but not yet opened or in negotiation hotels, ensuring a solid foundation for future growth [2].

Investment Rating - The report maintains a rating of "Outperform the Market" for the industry [3]. Core Insights - The industry fundamentals are expected to remain under pressure in 2024, with most sectors and companies still significantly affected by macroeconomic factors. However, a number of companies are emerging that are successfully navigating the challenges of consumer downgrade by upgrading from categories to quality and then to brand [1][2]. - The report highlights that companies with strong brand attributes are likely to continue outperforming as the market transitions from price-performance to quality-price comparisons [2]. Summary by Sections 1. Duty-Free Sector - The duty-free sales in Hainan are gradually stabilizing, with the implementation of the Hainan closure policy expected to benefit the duty-free sector. The market is seeing improvements in channel and supply chain capabilities, leading to a stable outlook for profitability [2][49]. - Key companies to watch include China Duty Free Group and Wangfujing [2]. 2. Tourism and Gaming - The tourism sector shows strong resilience in demand, becoming a crucial driver for domestic consumption. The recovery in inbound and outbound travel is significant, with a focus on new consumption scenarios and the silver-haired tourism market [2][3]. - Recommended companies include Jiuhua Tourism, Lingnan Holdings, and Sands China [2]. 3. Hotel Industry - The hotel sector is experiencing weak business travel demand, leading to pressure on RevPAR. However, leisure demand remains resilient, and leading companies are enhancing profitability through brand matrix validation and supply chain optimization [3][72]. - Companies to focus on include Huazhu Group, Atour, and Jinjiang Hotels [3]. 4. Restaurant Sector - Leading restaurant companies are demonstrating strong supply chain negotiation and profitability advantages. The overall supply in the restaurant industry is optimizing, with a competitive trend in price-performance [3][7]. - Notable companies include Mixue Ice City, KFC, and Haidilao [3][7]. 5. Cosmetics and Medical Aesthetics - The cosmetics sector is seeing a shift in focus towards profitability, with companies restructuring their product and channel strategies. High-growth companies are expected to achieve both revenue and profit increases [7][23]. - Key players include Juzhibio, Shumei, and Marubi [7][23]. 6. General Retail - The retail sector is undergoing digital upgrades and operational adjustments, with a focus on essential demand and cash flow stability. Companies like Yonghui Supermarket and Multi-Point Intelligence are recommended [8][30]. - The report also highlights the ongoing challenges in the jewelry sector due to rising gold prices [8][30]. 7. Overall Market Performance - The consumer services sector is expected to face challenges, with a projected performance of -8.70% in 2024. However, the beauty and personal care sector is anticipated to recover with a growth of +8.15% in 2025 [11][19].

Investment Rating - The investment rating for the industry is "Outperform the Market" (maintained) [2] Core Viewpoints - The tourism volume is increasing while prices remain stable, with an extended travel radius. The focus is on policy support and advancements in AI applications [3] Summary by Sections Market Review - In April, the social service sector outperformed the benchmark by 1.42 percentage points, with strong performance from tourism and education stocks. The A-share scenic spots and leading education stocks led the gains, while Hong Kong stocks in the supply chain and tea beverage sectors also performed well [3][4][6] May Day Holiday Summary - Domestic spending during the holiday increased by 8.0%, with travel willingness remaining high and an extended travel radius. A total of 314 million domestic trips were made, a year-on-year increase of 6.4%. The average spending per person increased by 1.5%, recovering to 90% of the 2019 level [3][9] Sub-Industries - **Inbound and Outbound Travel**: Inbound travel increased by 28.7% during the holiday, with significant growth in travelers from Hong Kong, Macau, Taiwan, and foreign visitors. The number of inbound foreign visitors under visa-free policies grew by 72.7% [3][21] - **Hotel Industry**: The hotel industry saw a REVPAR of 192 yuan, up 11.5% year-on-year, with occupancy rates and average daily rates also increasing. High-star hotels in county areas outperformed the overall industry [24][22] - **Scenic Spots**: Many scenic spots experienced significant visitor growth, aided by favorable weather and local government promotional activities. For example, Xiangyuan Cultural Tourism received 51.79% more visitors compared to last year [25][28] - **Dining**: Key monitored dining enterprises saw sales increase by 8.7% year-on-year, indicating a recovery in consumer spending [29][30] - **Duty-Free Sales**: Duty-free shopping during the holiday saw a decline of 7% in sales, but the average spending per person remained stable [41][35] Investment Recommendations - The report suggests focusing on leading companies benefiting from policy support and marginal improvements, including Tongcheng Travel, Xueda Education, Jiuhua Tourism, and others. Mid-term recommendations include China Duty Free, Meituan, Huazhu Group, and others [3][42]

Core Insights - The report highlights that tourism volume is increasing while prices remain stable, with a focus on policy support and advancements in AI applications within the sector [3][9] - The domestic travel market saw 314 million trips during the May Day holiday, a year-on-year increase of 6.4%, with total spending reaching 180.27 billion yuan, up 8.0% [9][21] - The report suggests that the tourism trend will continue to improve due to consumer experience demands and favorable industry policies, recommending investments in leading companies benefiting from these trends [3][42] Market Review - In April, the consumer services sector outperformed the benchmark by 1.42 percentage points, with strong performances from tourism and education stocks [4][6] - The May Day holiday saw significant gains in the education sector and travel-related stocks, with notable performances from companies involved in AI-enhanced education [4][6] Sub-industry Analysis - **Inbound and Outbound Travel**: Inbound travel saw a 28.7% increase in visitor numbers during the May Day holiday, with significant growth in travelers from Hong Kong, Macau, and Taiwan [16][21] - **Hotel Industry**: The hotel sector experienced a 11.5% increase in revenue per available room (RevPAR) during the holiday, with occupancy rates and average daily rates also rising [24][22] - **Scenic Areas**: Major scenic spots reported strong visitor numbers, with some locations seeing over 50% growth compared to the previous year, aided by favorable weather and local government initiatives [25][28] - **Dining Sector**: Key monitored dining enterprises reported an 8.7% increase in sales during the holiday, reflecting a recovery in consumer spending [29][30] - **Duty-Free Sales**: Duty-free shopping during the holiday saw a decline of 7% in sales, although the average transaction value remained stable [35][41] Investment Recommendations - The report recommends focusing on leading companies that are expected to benefit from policy support and improving consumer sentiment, including Tongcheng Travel, Xueda Education, Jiuhua Tourism, and others [3][42]

Investment Rating - The report maintains an "Accumulate" rating for the company [7] Core Views - The company achieved a revenue of 7.751 billion RMB in 2024, a slight decrease of 0.54% year-on-year, with a net profit attributable to the parent company of 806 million RMB, reflecting a year-on-year increase of 1.41% [1] - The company is focusing on enhancing operational efficiency and profitability through a flatter regional operational structure and accelerated standard store expansion, targeting to open 1,500 new stores in 2025 [1][4] - The target price for the company is set at 20.50 RMB, reflecting an increase from the previous target of 17.85 RMB, based on a 25x PE ratio for 2025 [4][8] Revenue and Profitability - In 2024, the hotel and scenic area operating revenues were 7.235 billion RMB and 516 million RMB, respectively, with year-on-year changes of -0.58% and +0.07% [2] - The overall RevPAR, ADR, and occupancy rate for the company in 2024 were 167 RMB, 245 RMB, and 68.2%, showing a year-on-year decline of 3.2%, 2.3%, and 0.6 percentage points [2][3] - The company reported a net profit margin of 10.41% in 2023, with expectations for an increase to 11.86% by 2025 [17] Store Expansion and Quality Improvement - The company opened 1,353 new stores in 2024, a year-on-year increase of 12.5%, with a net increase of 739 stores, marking a significant improvement in store quality [3] - As of Q1 2025, the company had a total of 7,084 stores, with a focus on enhancing the quality of new openings, particularly in the standard store category [3] Financial Forecasts - The company is projected to achieve revenues of 7.902 billion RMB in 2025, with a net profit of 921 million RMB, reflecting a year-on-year growth of 14.23% [6][17] - The EPS is expected to increase from 0.72 RMB in 2024 to 0.82 RMB in 2025, with further growth anticipated in subsequent years [6][17]

Core Insights - The company achieved a revenue of 7.751 billion with a year-on-year decrease of 0.54%, and a net profit attributable to shareholders of 806 million, reflecting a year-on-year increase of 1.41% [1] - The company is transitioning to a flatter regional operational structure to enhance local development and aims to open 1,500 new stores in 2025, accelerating its expansion pace [1][3] - The company maintains an "overweight" rating, anticipating improved operational efficiency and profitability if industry supply and demand balance is restored in the second half of 2025 [1][4] Financial Performance - In 2024, hotel and scenic area operating revenues were 7.235 billion and 516 million respectively, with year-on-year changes of -0.58% and +0.07% [2] - The overall RevPAR, ADR, and OCC for the company in 2024 were 167 yuan, 245 yuan, and 68.2%, showing year-on-year declines of 3.2%, 2.3%, and 0.6 percentage points [2] - In Q1 2025, the company reported revenues of 1.765 billion, a year-on-year decrease of 4.34%, while net profit attributable to shareholders was 143 million, reflecting an 18.37% increase [1][2] Store Expansion and Quality Improvement - The company opened 1,353 new stores in 2024, a year-on-year increase of 12.5%, with 710 of these being standard stores, marking a 55.4% increase [3] - In Q1 2025, the company continued its positive trend with 300 new stores opened, a 46.3% increase year-on-year, and 192 of these were standard stores, representing an 88.2% increase [3] - The company’s total store count reached 7,084 as of Q1 2025, with economic and mid-to-high-end hotels making up 28.2% and 29.0% of the total respectively [3] Valuation and Future Outlook - The target price for the company is set at 20.50 yuan, maintaining an "overweight" rating, despite slight downward adjustments to the EPS for 2025 and 2026 [4] - The company is expected to experience an upward turning point in operations due to improved expansion quality and speed [4]

Investment Rating - The industry investment rating is "Outperform the Market" [1][36]. Core Insights - During the May Day holiday (May 1-5), the total inter-regional population flow is expected to reach 1.467 billion, with a daily average of 293 million, representing a year-on-year increase of 8.0% [3][5]. - Railway passenger volume is projected to be 101.69 million, with a daily average of 20.34 million, up 10.8% year-on-year; civil aviation passenger volume is expected to be 11.14 million, with a daily average of 2.23 million, up 11.8% year-on-year [3][5]. - The travel market is seeing a strong recovery, with significant growth in long-distance travel destinations and a 20% year-on-year increase in outbound travel orders [3][5]. - Alibaba upgraded its instant retail business, Taobao "Xiaoshida," to Taobao "Shangou," which will cover over 50 cities and aims for nationwide coverage by May 6 [3][6]. - In April, Douyin's beauty category GMV reached 17.501 billion, with skincare products accounting for 11.862 billion and makeup products for 4.948 billion [3][8]. Summary by Sections Industry Dynamics: Travel - The May Day holiday is expected to see a total of 1.467 billion inter-regional trips, with significant increases in railway and civil aviation passenger volumes [5]. - Long-distance travel destinations are performing well, with a notable increase in family and pet travel, and a resurgence in cruise travel [3][5]. Industry Dynamics: Retail - Alibaba's Taobao "Shangou" aims to enhance instant retail services by collaborating with Ele.me for subsidies exceeding 10 billion [6]. Industry Dynamics: Beauty - Douyin's beauty category shows strong performance, with a total GMV of 17.501 billion in April, indicating robust market activity [8][9]. - The top 20 beauty brands on Douyin are undergoing changes, with significant self-operated brand representation [8][9]. Company Dynamics: Beauty - MAOGEPING launched a new fragrance series in collaboration with the Palace Museum, showcasing a blend of cultural elements [11][15]. - Huaxi Biological's product "Runbaiyan·Bobo" has been approved as the first Class III medical device for facial skin improvement in China [21][20].

Group 1 - The company reported Q1 2025 revenue of 1.765 billion yuan, a year-over-year decrease of 4%, and a net profit attributable to shareholders of 143 million yuan, a year-over-year increase of 18% [1] - The company's gross margin was 35.4%, down 1.2 percentage points year-over-year, but there was a significant reduction in expenses, with sales, management, and financial expense ratios at 7.9%, 12.9%, and 4.2%, respectively, all down year-over-year [1] - Other income and net investment income increased by a total of 36 million yuan, contributing to a 1.6 percentage point year-over-year increase in net profit margin to 8.1% [1] Group 2 - In Q1 2025, the company opened 300 new stores, a year-over-year increase of 46%, with 192 standard management hotels opened, a year-over-year increase of 88%, accounting for 64.0% of all new openings [1] - The company continued its asset-light strategy, opening 297 stores through franchising, which accounted for 99.0% of new openings, and as of March 31, 2025, the proportion of franchised stores increased to 91.6% [1] - The overall hotel RevPAR for Q1 2025 was 124 yuan, a year-over-year decrease of 5.3%, with an ADR of 212 yuan, down 2.5% year-over-year, and an occupancy rate of 58.3%, down 1.8 percentage points year-over-year [2] Group 3 - The company forecasts revenues of 8 billion yuan, 8.2 billion yuan, and 8.5 billion yuan for 2025 to 2027, representing year-over-year growth of 3% each year, and net profits of 910 million yuan, 1.01 billion yuan, and 1.11 billion yuan, representing year-over-year growth of 13%, 11%, and 10% respectively [2] - The current stock price corresponds to PE ratios of 18, 16, and 15 for the years 2025, 2026, and 2027 [2] - The company maintains a "recommended" rating, focusing on the short-term trends in the business travel hotel industry and the long-term growth potential of hotel group franchising [2]

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [7]. Core Views - The company reported a strong performance in Q1 2025, with a revenue of 1.77 billion yuan, a year-on-year decline of 4.3%, and a net profit attributable to shareholders of 140 million yuan, reflecting an 18.4% increase year-on-year [1]. - The hotel business showed significant profit growth, with a total revenue of 1.56 billion yuan in Q1 2025, down 4.65% year-on-year, but with a profit of 76 million yuan, up 47.6% year-on-year [2]. - The company is accelerating the opening of standard hotels, with 300 new openings in Q1 2025, a 46.3% increase year-on-year, and standard hotels accounting for 64% of new openings [4]. - The company maintains its profit forecast for 2025-2027, expecting net profits of 910 million, 1.05 billion, and 1.18 billion yuan respectively, with corresponding P/E ratios of 18, 15, and 14 [5]. Business Performance Summary - The hotel business experienced a revenue decline of 4.65% in Q1 2025, but profit increased significantly by 47.6% [2]. - The scenic area operation business also saw a revenue decline of 1.8% in Q1 2025, with a profit increase of 3.1% [2]. - The overall RevPAR for the company was 141 yuan in Q1 2025, down 4.6% year-on-year, with an occupancy rate of 61.7%, down 1.7 percentage points [3]. Store Opening Situation - The total number of hotels reached 7,084 by the end of Q1 2025, a year-on-year increase of 12.5%, with a net increase of 82 hotels, up 156% year-on-year [4]. - The company had 1,724 hotels in reserve by the end of Q1 2025, with standard hotels making up 59% of this total [4]. Profitability Analysis - The gross profit margin for Q1 2025 was 35.4%, a decrease of 1.2 percentage points year-on-year, while the net profit margin improved to 8.1%, an increase of 1.55 percentage points [5].

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [7]. Core Views - The company reported a strong performance in Q1 2025, with a revenue of 1.77 billion yuan, a year-on-year decline of 4.3%, and a net profit attributable to shareholders of 140 million yuan, representing an 18.4% increase year-on-year [1]. - The hotel business showed significant profit growth, with a total revenue of 1.56 billion yuan in Q1 2025, down 4.65% year-on-year, but with a profit of 76 million yuan, up 47.6% year-on-year [2]. - The company is accelerating the opening of standard hotels, with 300 new openings in Q1 2025, a 46.3% increase year-on-year, and standard hotels accounting for 64% of new openings [4]. - The company maintains its profit forecast for 2025-2027, expecting net profits of 910 million, 1.05 billion, and 1.18 billion yuan respectively, with corresponding P/E ratios of 18, 15, and 14 [5]. Business Performance Summary - The hotel business experienced a revenue decline of 4.65% in Q1 2025, but profit increased significantly by 47.6% [2]. - The scenic area operation business also saw a revenue decline of 1.8% in Q1 2025, with a profit increase of 3.1% [2]. - The overall RevPAR for the company was 141 yuan in Q1 2025, down 4.6% year-on-year, with an occupancy rate of 61.7%, down 1.7 percentage points [3]. Store Opening Situation - The total number of hotels reached 7,084 by the end of Q1 2025, a year-on-year increase of 12.5%, with a net increase of 82 hotels, up 156% year-on-year [4]. - The company had a reserve of 1,724 hotels at the end of Q1 2025, with standard hotels making up 59% of this total [4]. Profitability Analysis - The gross profit margin for Q1 2025 was 35.4%, a decrease of 1.2 percentage points year-on-year, while the net profit margin improved to 8.1%, an increase of 1.55 percentage points [5].